Assignment 2: Form 1040A Problem

WEEK 2 HOMEWORK 2

Facts:

The taxpayer is:

Sally Student

123 Maple Street

Cincinnati, Ohio 44000

Social Security No. 123-45-6789

Sally is a 30-year old single person. She is an accountant and also works a side weekend job in an art gallery. She is not claimed as a dependent by anyone else. For 20XX, she had the following

INCOME:

1. W-2 from 1^st employer

Gross wages income: $13,164

Federal Withholding $ 921

2. W-2 from 2d employer

Gross wages $50,000.00

Federal withholding $ 9,500.00

3. Interest income from bank $132.00

4 Interest from brokerage firm $2,100.00

5. Ordinary "qualified" dividends from large U.S. Corporation: $3,000.00

To do:

Go the IRS website at irs.gov, and get a Form 1040A and instructions, and also a Schedule B. Use these, with the facts above, to prepare a Form 1040A for Sally for the most recent year for which there is a form (this is almost always the calendar year prior to the present year). Remember to consider both the standard deduction and the personal exemption, if any. Remember to consider both the standard deduction and the personal exemption, if any.