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Posted on Sep 08, 2024

Basic Scenario 7: Evie Adams Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the

Basic Scenario 7: Evie Adams Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes Evie is single and has two young girls, Poppy and Lily, who lived with her all year. Evie paid more than half of the support for her daughters and all the cost of keeping up the home. Evie was unemployed for two months (March and April). She cashed in her 401(k) and used the money to pay for living expenses. Evie is paying off a student loan that she took out when she attended college for her bachelor's degree. She took some courses this year at Southwest College to improve her job skills as an educator. She did not receive a Form 1098-T for 2018. Evie was an elementary school teacher from May to December and paid $550 out of pocket for classroom supplies. She went to the local casino and won some money in 2019. During the interview she mentions that she had gambling losses of $700. 20. What is the total amount of adjustments on Evie's tax return? a. $250 b. $600 c. $850 d. $1,550 21. What is the lifetime learning education credit amount on Evie's tax return? $________. 22. What is the total federal income tax withheld on Evie's tax return? $_______. 23. What is the amount of gambling winnings reported on her 2019 return? a. $0 b. $1,300 c. $2,000 d. $3,200 24. Evie is eligible to claim which of the following credits on her 2019 tax return? a. Child and dependent care credit b. Child tax credit c. Earned income tax credit d. All of the above 25. Evie must pay an additional tax on the early distribution from her 401(k) of: a. 0% b. 5% c. 10% d. 15%

250-00-00 SALEM ELEMENTARY SCHOOL 1270 WEST 29TH STREET YOUR CITY STATE ZIP EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY, STATE ZIP YS 35-600XX 33,000.00 Fan W-2 Wape and Tax 2019 Copy - To Be Pied with Employee' FEDERAL Tax Return Thom as being t he the internal Revenue Service 1545-000 ce-file 39-TOOXXXX 50.75 DAVIDSON INC 4325 NORTHRIDGE AVE YOUR CITY, STATE ZIP EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY STATE ZIP YS 3-TOOXXXX 1210.00 -W-2 Wape and Tax 2019 Copy-To Be Feed FEDERAL T-Return CORRECTEDI checked 2,000.00 RIDGETOP CASINO 777 CREST ROAD YOUR CITY STATE ZIP 2019 Form W-2G Certain Gambling Winnings 38-800OOK YOUR PHONE 259-00-XXXX EVIE ADAMS Revenue Service YS987654 YS 316-00-XXXX 129 PENNINGTON PLACE Copy B Report the income on your federal tax return. If the form shows federal YOUR CITY, STATE ZIP box 4, attach pig copy to your return Nether Signature FWG www.wowo GEN 16000 CORRECTED checked ortowe opro , courtyP o rt STATE UNEMPLOYMENT COMMISSION $ 2,200.00 1000 GOVERNMENT PLAZA YOUR CITY, STATE ZIP under (555) 565-4321 PATERS TIN 35-Tooxxx 259-00-XXX 2019 Certain Government Payments Copy B For Recipient EVIE ADAMS 129 PENNINGTON PLACE y and Pr YOUR CITY STATE ZIP o ce 100 CORRECTED checked 2.000.00 2019 KENT STATE BANK TO COLQUITT WAY YOUR CITY STATE ZIP Com 2.000.00 1000R Copy Report the Income on your return 300.00 tedral income EVE ADAMS box 4, attach this copy to 129 PENNINGTON PLACE This woman bergu ed to YOUR CITY STATE ZIP 1 CORRECTED 6 checked FINANCIAL AID PARTNERS 666 LINCOLN YOUR CITY STATE ZIP 2019 Student Loan Interest Statement 1000-E Copy 38.000XXXX 259.00-XXXX For Brewer EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY STATE ZIP 1 CORRECTED $ 2,800.00 SOUTHWEST COLLEGE 1000 COLLEGE AVE YOUR CITY, STATE ZIP 2019 Tuition Statement 35-500XXXX 250-00-XXXX Copy For Student EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY STATE ZIP 100T River's Child Care 303 Twiggs Trail Your City. Your State Your Zip December 31, 2019 Received from Evie Adams: $1,500 for after-school care for Poppy Adams $1,500 for after-school care for Lily Adams $3.000 Total amount received for child care in 2019 Elen River EIN: 35-900xxxx Your City State 00000 ORDER OF Adelph Bank and Trust 00000 111000025 123456789123 250-00-00 SALEM ELEMENTARY SCHOOL 1270 WEST 29TH STREET YOUR CITY STATE ZIP EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY, STATE ZIP YS 35-600XX 33,000.00 Fan W-2 Wape and Tax 2019 Copy - To Be Pied with Employee' FEDERAL Tax Return Thom as being t he the internal Revenue Service 1545-000 ce-file 39-TOOXXXX 50.75 DAVIDSON INC 4325 NORTHRIDGE AVE YOUR CITY, STATE ZIP EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY STATE ZIP YS 3-TOOXXXX 1210.00 -W-2 Wape and Tax 2019 Copy-To Be Feed FEDERAL T-Return CORRECTEDI checked 2,000.00 RIDGETOP CASINO 777 CREST ROAD YOUR CITY STATE ZIP 2019 Form W-2G Certain Gambling Winnings 38-800OOK YOUR PHONE 259-00-XXXX EVIE ADAMS Revenue Service YS987654 YS 316-00-XXXX 129 PENNINGTON PLACE Copy B Report the income on your federal tax return. If the form shows federal YOUR CITY, STATE ZIP box 4, attach pig copy to your return Nether Signature FWG www.wowo GEN 16000 CORRECTED checked ortowe opro , courtyP o rt STATE UNEMPLOYMENT COMMISSION $ 2,200.00 1000 GOVERNMENT PLAZA YOUR CITY, STATE ZIP under (555) 565-4321 PATERS TIN 35-Tooxxx 259-00-XXX 2019 Certain Government Payments Copy B For Recipient EVIE ADAMS 129 PENNINGTON PLACE y and Pr YOUR CITY STATE ZIP o ce 100 CORRECTED checked 2.000.00 2019 KENT STATE BANK TO COLQUITT WAY YOUR CITY STATE ZIP Com 2.000.00 1000R Copy Report the Income on your return 300.00 tedral income EVE ADAMS box 4, attach this copy to 129 PENNINGTON PLACE This woman bergu ed to YOUR CITY STATE ZIP 1 CORRECTED 6 checked FINANCIAL AID PARTNERS 666 LINCOLN YOUR CITY STATE ZIP 2019 Student Loan Interest Statement 1000-E Copy 38.000XXXX 259.00-XXXX For Brewer EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY STATE ZIP 1 CORRECTED $ 2,800.00 SOUTHWEST COLLEGE 1000 COLLEGE AVE YOUR CITY, STATE ZIP 2019 Tuition Statement 35-500XXXX 250-00-XXXX Copy For Student EVIE ADAMS 129 PENNINGTON PLACE YOUR CITY STATE ZIP 100T River's Child Care 303 Twiggs Trail Your City. Your State Your Zip December 31, 2019 Received from Evie Adams: $1,500 for after-school care for Poppy Adams $1,500 for after-school care for Lily Adams $3.000 Total amount received for child care in 2019 Elen River EIN: 35-900xxxx Your City State 00000 ORDER OF Adelph Bank and Trust 00000 111000025 123456789123