Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield, MO 63126. Both taxpayers are under age 65. Ken is a full-time student at Southwest Missouri State University (SMSU) and Bev works as an accountant at Cypress Corporation. Bev's Social Security number is 465-74-3321 and Ken's is 465-57-9934. Bev's earnings and income tax withholdings for 2015 are: Earnings from Cypress Corp. $50,350 Federal income tax withheld 5,500 State income tax withheld 675 The Hairs have interest income of $1,000 on City of St. Louis bonds. During 2015, Bev and Ken received the following 1099-INT and DIV: CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Boatman's Bank 300 City Avenue Springfield, MO 63126 Payer's RTN (optional) OMB No. 1545-0112 2015 Form 1099-INT Interest Income 1 Interest income $ 643.00 2 Early withdrawal penalty Copy B For Recipient This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. PAYER'S federal identification number RECIPIENT'S identification number $ 3 Interest on U.S. Savings Bonds and Treas. obligations 33-1234556 465-57-9934 $ RECIPIENT'S name Ken & Bev Hair 4 Federal income tax withheld $ 5 Investment expenses $ Street address (including apt. no.) 3567 River Street 6 Foreign tax paid $ 7 Foreign country or U.S. possession City or town, state or province, country, and ZIP or foreign postal code Springfield, MO 63126 8 Taxexempt interest $ 9 Specified private activity bond interest $ 10 Market discount 11 Bond premium FATCA filing requirement $ $ 12 13 Bond premium on tax-exempt bond $ Account number (see instructions) 14 Taxexempt and tax credit bond CUSIP no. 15 State 16 State identification no. 17 State tax withheld $ $ Form 1099-INT (keep for your records) www.irs.gov/form1099int Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Green Corporation 900 South Orange Avenue Springfield, MO 63126 1aTotal ordinary dividends $ 301.00 OMB No. 1545-0110 2015 Form 1099-DIV Dividends and Distributions 1bQualified dividends $ 301.00 2aTotal capital gain distr. $ 2bUnrecap. Sec. 1250 gain $ Copy B For Recipient This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. PAYER'S federal identification number RECIPIENT'S identification number 2cSection 1202 gain 2dCollectibles (28%) gain 33-1122334 465-57-9934 $ $ RECIPIENT'S name Ken Hair 3Nondividend distributions $ 4Federal income tax withheld $ 5 Investment expenses Street address (including apt. no.) $ 3567 River Street 6Foreign tax paid 7Foreign country or U.S. possession City or town, state or province, country, and ZIP or foreign postal code $ Springfield, MO 63126 8Cash liquidation distributions $ 9Noncash liquidation distributions $ FATCA filing requirement 10Exemptinterest dividends $ 11Specified private activity bond interest dividends $ Account number (see instructions) 12 State 13 State identification no 14 State tax withheld $ $ Form 1099-DIV (keep for your records) www.irs.gov/form1099div Department of the Treasury - Internal Revenue Service Ken is an excellent student at SMSU. He was given a $1,750 scholarship by the university to help pay educational expenses. The scholarship funds were used by Ken for tuition and books. Ken also had a part-time job at SMSU. He was paid $2,525 on a W-2 for helping out in the Dean's office. There was no income tax withheld on the amount paid to Ken from this job. Last year, Bev was laid off from her former job and was unemployed during January 2015. She was paid $1,825 of unemployment compensation until she started work with her current employer, Cypress Corporation. Ken has a 4-year-old son, Robert R. Hair, from a prior marriage. During 2015, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife. During 2015, Ken's aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the SMSU Credit Union account. Required: Complete the Hair's federal tax return for 2015. Use Form 1040A and the worksheet below. Make realistic assumptions about any missing data. If an amount box does not require an entry or if an amount is zero, enter "0". Click here to access the tax table to use for this problem. Form 1040A Department of the TreasuryInternal Revenue Service U.S. Individual Income Tax Return (99) 2015 IRS Use Only Your first name and initial Ken Last name Hair OMB No. 1545-0074 Your social security number 465-57-9934 If a joint return, spouse's first name and initial Bev Last name Hair Spouse's social security number 465-74-3321 Home address (number and street). If you have a P.O. box, see instructions. 3567 River Street Apt. no. Make sure the SSN(s) above and on line 6c are correct. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Springfield, MO 63126 Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse Foreign country name Foreign province/state/country Foreign postal code Filing status Married filing jointly (even if only one had income) Exemptions 6a Yes Yourself. If someone can claim you as a dependent, do not check box 6a } Boxes checked on 6a and 6b b Yes Spouse If more than six dependents, see instructions. c Dependents: (2) Dependent's social security number (3) Dependent's relationship to you (4) If child under age 17 qualifying for child tax credit (see instructions) No. of children on 6c who: lived with you ________ (1) First name Last name did not live with you due to divorce or separation (see instructions) ________ Dependents on 6c not entered above ________ d Total number of exemptions claimed. Add numbers on lines above Income Attach Form(s) W-2 here. Also attach Form(s) 1099-R if tax was withheld. If you did not get a W-2, see instructions. 7 Wages, salaries, tips, etc. Attach Form(s) W-2. 7 8a Taxable interest. Attach Schedule B if required. 8a b Tax-exempt interest. Do not include on line 8a. 8b 9a Ordinary dividends. Attach Schedule B if required. 9a b Qualified dividends (see instructions). 9b 10 Capital gain distributions (see instructions). 10 11a IRA distributions. 11a 11b Taxable amount (see instructions). 11b 12a Pensions and annuities. 12a 12b Taxable amount (see instructions). 12b 13 Unemployment compensation and Alaska Permanent Fund dividends. 13 14a Social security benefits. 14a 14b Taxable amount (see instructions). 14b 15 Add lines 7 through 14b (far right column). This is your total income. 15 Adjusted gross income 16 Reserved 16 17 IRA deduction (see instructions). 17 18 Student loan interest deduction (see instructions). 18 19 Reserved 19 20 Add lines 16 through 19. These are your total adjustments. 20 21 Subtract line 20 from line 15. This is your adjusted gross income. 21 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11327A Form 1040A (2015) Form 1040A (2015) Page 2 Tax, credits, and payments 22 Enter the amount from line 21 (adjusted gross income). 22 23a Check if: { You were born before January 2, 1951, Blind. Spouse was born before January 2, 1951, Blind. } Total boxes checked 23a Standard Deduction for People who check any box on line 23a or 23b or who can be claimed as a dependent, see instructions. All others: Single or Married filing separately, $6,300 Married filing jointly or Qualifying widow(er), $12,600 Head of household, $9,250 b If you are married filing separately and your spouse itemizes deductions, check here 23b 24 Enter your standard deduction. 24 25 Subtract line 24 from line 22. If line 24 is more than line 22, enter -0-. 25 26 Exemptions. Multiply $4,000 by the number on line 6d. 26 27 Subtract line 26 from line 25. If line 26 is more than line 25, enter -0-. This is your taxable income. 27 28 Tax, including any alternative minimum tax (see instructions). 28 29 Excess advance premium tax credit repayment. Attach Form 8962. 29 30 Add lines 28 and 29. 30 31 Credit for child and dependent care expenses. Attach Form 2441. 31 32 Credit for the elderly or the disabled. Attach Schedule R. 32 33 Education credits from Form 8863, line 19. 33 34 Retirement savings contributions credit. Attach Form 8880. 34 35 Child tax credit. Attach Schedule 8812, if required. 35 36 Add lines 31 through 35. These are your total credits. 36 37 Subtract line 36 from line 30. If line 36 is more than line 30, enter -0-. 37 38 Health care: individual responsibility (see instructions). Full-year coverage 38 39 Add line 37 and line 38. This is your total tax. 39 40 Federal income tax withheld from Forms W-2 and 1099. 40 If you have a qualifying child, attach Schedule EIC. 41 2015 estimated tax payments and amount applied from 2014 return. 41 42a Earned income credit (EIC). 42a b Nontaxable combat pay election. 42b 43 Additional child tax credit. Attach Schedule 8812. 43 44 American opportunity credit from Form 8863, line 8. 44 45 Net premium tax credit. Attach Form 8962. 45 46 Add lines 40, 41, 42a, 43, 44, and 45. These are your total payments. 46 Refund Direct deposit? See instructions and fill in 48b, 48c, and 48d or Form 8888. 47 If line 46 is more than line 39, subtract line 39 from line 46. This is the amount you overpaid. 47 48a Amount of line 47 you want refunded to you. If Form 8888 is attached, check here 48a b Routing Number c Type: Checking Savings d Account Number 49 Amount of line 47 you want applied to your 2016 estimated tax. 49 Amount you owe 50 Amount you owe. Subtract line 46 from line 39. For details on how to pay, see instructions. 50 51 Estimated tax penalty (see instructions). 51 Third party designee Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete the following. No Designee's name Phone no. Personal identification number (PIN) Sign here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other than the taxpayer) is based on all information of which the preparer has any knowledge. Your signature Ken Hair Date Your occupation Daytime phone number Spouse's signature. If a joint return, both must sign. Bev Hair Date Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Paid preparer use only Print/type preparer's name Preparer's signature Date Check if self employed PTIN Firm's name Firm's EIN Firm's address Phone no. Form 1040A (2015) Qualified Dividends and Capital Gain Tax WorksheetLine 28 Keep for Your Records * Before you begin: Be sure you do not have to file Form 1040 (see the Instructions for Form 1040A, line 10). 1. Enter the amount from Form 1040A, line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter the amount from Form 1040A, line 9b . . . . . . . . . . . . . . . . . . . . . . 2. 3. Enter the amount from Form 1040A, line 10 . . . . . . . . . . . . . . . . . . . . . . 3. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Subtract line 4 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Enter the smaller of: The amount on line 1, or } $37,450 if single or married filing separately, . . . . . . . . . 6. $74,900 if married filing jointly or qualifying widow(er), or $50,200 if head of household. 7. Enter the smaller of line 5 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Subtract line 7 from line 6. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Enter the smaller of line 1 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Enter the amount from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Subtract line 10 from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Multiply line 11 by 15%(.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 13. Use the Tax Table to figure the tax on the amount on line 5. Enter the tax here . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 15. Use the Tax Table to figure the tax on the amount on line 1. Enter the tax here . . . . . . . . . . . . . . . . . . . . . . . . . . 15. 16. Tax on all taxable income. Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28. . . . . . . . . . . 16. * Note: This worksheet does not apply for high-income taxpayers under the ACA or ATRA provisions (See LO 1.9). Feedback