Basic Scenario

$9$

: Hailey Simpson

Directions

Using the tax software, complete the tax return, including Form

$1$

$0$

$4$

$0$

$$and all appropriate forms, schedules, or

worksheets. Answer the questions following the scenario.

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

$$

$$Hailey is

$3$

$2$

$$years old and married to Liam. Liam passed away on February

$2$

$,$

$2$

$0$

$2$

$1$

$.$

$$Hailey has not

remarried.

$$

$$Hailey$\text{'}$s nine

$-$

year

$-$

old daughter, Olivia, lived with her the entire year.

$$

$$Hailey paid more than half the cost of keeping up a home and support for Olivia.

$$

$$Hailey took a distribution from her traditional IRA in January to pay for her new roof.

$$

$$Hailey was a full

$-$

time high school teacher and earned $

$4$

$5$

$,$

$0$

$0$

$0$

$$in wages. Hailey purchased supplies

including masks and hand sanitizer for her class out of her own pocket totaling $

$4$

$5$

$0$

$.$

$$

$$Hailey received a W

$-$

$2$

G in the amount of $

$2$

$,$

$5$

$0$

$0$

$$from the local casino.

$$

$$Hailey paid child and dependent care expenses for Olivia while she worked.

$$

$$Hailey and Olivia are U

$.$

S

$.$

$$citizens and have valid Social Security numbers. They lived in the United States

for the entire year.

$$

$$If Hailey is entitled to a refund, she would like to deposit half into her checking account and half into her

savings account. What amount can Hailey claim as an adjustment to income for the supplies she purchased out of

pocket?

a$.$ $$0$

b$.$ $$250$

c$.$ $$300$

d$.$ $$450$