Carl Conch and Mary Duval are married and file a joint return. They live at 1234 Mallory Sq. Apt. 64, Key West, FL 33040 and both are under age 65. Carl works for the Key Lime Pie Company and Mary is a homemaker after losing her job in 2015. Mary's Social Security number is 633-65-7912 and Carl's is 835-21-5423. Carls birthdate is June 14, 1971 and Marys is October 2, 1971. Carls earnings are reported on the following Form W-2:

a Employee's social security number 835-21-5423

OMB No. 1545-0008

Safe, accurate, FAST! Use

IRS e ~ file

Visit the IRS website at www.irs.gov/efile

b

Employer identification number (EIN) 61-7654321

1

Wages, tips, other compensation 67,600.00*

2

Federal income tax withheld 8,788.00

c

Employer's name, address, and ZIP code Key Lime Pie Co. 223 Key Deer Blvd. Big Pine Key, FL 33043

3

Social security wages 67,600.00

4

Social security tax withheld 4,191.20

5

Medicare wages and tips 67,600.00

6

Medicare tax withheld 980.20

7

Social security tips

8

Allocated tips

d

Control number

9

10

Dependent care benefits

e

Employee's first name and initial Carl Conch 1234 Mallory Sq. Apt. 64 Key West, FL 33040

Last name

Suff.

11

Nonqualified plans

12a

See instructions for box 12

C o d e

C

240.00

13

Statutory employee	Retirement plan	Third-party sick pay
?	?	?

12b

C o d e

14

Other Parking $1,680.00

12c

C o d e

12d

C o d e

f

Employee's address and ZIP code

15State FL		Employer's state ID number	16	State wages, tips, etc.	17	State income tax	18	Local wages, tips, etc.	19	Local income tax	20	Locality name

Form W-2

Wage and Tax Statement

2016

Department of the TreasuryInternal Revenue Service

Copy BTo Be Filed With Employee's FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

* Includes any taxable fringe benefits.

Carl and Mary received the following Form 1099s in 2016:

? CORRECTED (if checked)
PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Coral Reef Bank 3102 Simonton St. Key West, FL 33040			Payer's RTN (optional)	OMB No. 1545-0112 2016 Form 1099-INT		Interest Income
			1 Interest income $343.15
			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
31-1234444	33-65-7912		$
RECIPIENT'S name Mary Duval and Carl Conch			4 Federal income tax withheld $	5 Investment expenses $
Street address (including apt. no.) 1234 Mallory Sq. Apt. 64			6 Foreign tax paid $	7 Foreign country or U.S. possession
City or town, state or province, country, and ZIP or foreign postal code Key West, FL 33040			8 Tax-exempt interest $	9 Specified private activity bond interest $
			10 Market discount	11 Bond premium
		FATCA filing requirement	$	$
		?	12Bond premium on Treasury obligations $	13 Bond premium on tax-exempt bond $
Account number (see instructions)			14 Tax-exempt and tax credit bond CUSIP no.	15State	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. Southwest Corporation PO Box 36611 Dallas, TX 36611			1aTotal ordinary dividends $ 210.00	OMB No. 1545-0110 2016 Form 1099-DIV		Dividends and Distributions
			1bQualified dividends $ 0.00
			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
74-1536241	835-21-5423		$		$
RECIPIENT'S name Carl Conch			3Nondividend distributions $		4Federal income tax withheld $
					5 Investment expenses
Street address (including apt. no.)					$
1234 Mallory Sq. Apt. 64			6Foreign tax paid		7Foreign country or U.S. possession
City or town, state or province, country, and ZIP or foreign postal code			$
Key West, FL 33040			8Cash liquidation distributions $		9Noncash liquidation distributions $
		FATCA filing requirement ?	10Exempt-interest 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

Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pursuant to their divorce decree, Mary pays Tom $500 per month in child support. All payments were made on time in 2016.

In June of 2016, Mary's father gave her a cash gift of $75,000. Mary also received unemployment compensation as shown on the following Form 1099-G:

? CORRECTED (if checked)

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

Florida Dept. of Economic Opportunity PO Box 5250 Tallahassee, FL 32314-5250

1	Unemployment compensation
$	2,745.00

OMB No. 1545-0120 2016 Form 1099-G

Certain Government Payments

2	State or local income tax refunds, credits, or offsets
$

PAYER'S federal identification number 21-5556666

RECIPIENT'S identification number 633-65-7912

3	Box 2 amount is for tax year
$

4	Federal income tax withheld
$	0.00

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.

RECIPIENT'S name

Mary Duval

Street address (including apt. no.)

1234 Mallory Sq. Apt 64

City or town, state or province, country, and ZIP or foreign postal code

Key West, FL 33040

5	RTAA payments
$

6	Taxable grants
$

7	Agriculture payments
$

8	If checked, box 2 is trade or business income
	? ?

9	Market gain
$

Account number (see instructions)

10a

State

10b	State identification no.

11	State income tax withheld
$

$

Form 1099-G

(keep for your records)

www.irs.gov/form1099g

Department of the Treasury - Internal Revenue Service

Mary won a $750 prize in a womens club raffle in 2016. No income tax was withheld from the prize.

The Key Lime Pie Company provides Carl with a company car to drive while he is working. The Company spent $6,475 to maintain this vehicle during 2016. Carl never uses the car for personal purposes. The Key Lime Pie Company also provides a cafeteria for all employees on the factory premises. Other restaurants exist in the area and so Carl is not required to eat in the cafeteria, but he typically does. The value of Carls meals is $650 in 2016.

Required:

Complete Carl and Mary's federal tax return for 2016. Use Form 1040 below. Make realistic assumptions about any missing data. If an amount box does not require an entry or the amount is zero, enter "0".

Click here to access the tax table to use for this problem.

Form 1040

Department of the TreasuryInternal Revenue Service (99) U.S. Individual Income Tax Return

2016

OMB No. 1545-0074

IRS Use Only

For the year Jan. 1Dec. 31, 2016, or other tax year beginning

, 2016, ending

, 20

See separate instructions.

Your first name and initial Carl

Last name Conch

Your social security number 835-21-5423

If a joint return, spouse's first name and initial Mary

Last name Duval

Spouse's social security number 633-65-7912

Home address (number and street). If you have a P.O. box, see instructions. 1234 Mallory Square

Apt. no. 64

? 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). Key West, FL 33040

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 four dependents, see instructions and check here ? ?

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 Forms W-2G and 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9b

10

Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . .

10

11

Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .

11

12

Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . . . . . . .

12

13

Capital gain or (loss). Attach Schedule D if required. If not required, check here ? ?

13

14

Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

15a

IRA distributions . . . . . . . . . . .

15a

b

Taxable amount . . . .

15b

16a

Pensions and annuities . . . . . .

16a

b

Taxable amount . . . .

16b

17

Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E

17

18

Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

19

Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

20a

Social security benefits

20a

b

Taxable amount . . . .

20b

21

Other income. List type and amount

21

22

Combine the amounts in the far right column for lines 7 through 21. This is your total income ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

Adjusted Gross Income

23

Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

24

Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ

24

25

Health savings account deduction. Attach Form 8889 . . . . .

25

26

Moving expenses. Attach Form 3903 . . . . . . . . . . . . . . . . . .

26

27

Deductible part of self-employment tax. Attach Schedule SE

27

28

Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . .

28

29

Self-employed health insurance deduction . . . . . . . . . . . . .

29

30

Penalty on early withdrawal of savings . . . . . . . . . . . . . . . .

30

31a

Alimony paid b Recipient's SSN ?

31a

32

IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32

33

Student loan interest deduction . . . . . . . . . . . . . . . . . . . . .

33

34

Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . .

34

35

Domestic production activities deduction. Attach Form 8903

35

36

Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36

37

Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . . . . .

?

37

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11320B

Form 1040 (2016)

Form 1040 (2016)

Page 2

38

Amount from line 37 (adjusted gross income)

38

Tax and Credits

39a

Check if:

{

? You were born before January 2, 1952, ? Blind. ? Spouse was born before January 2, 1952, ? Blind.

}

Total boxes checked ? 39a

Standard Deduction for People who check any box on line 39a or 39b 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, $9,300

b

If your spouse itemizes on a separate return or you were a dual-status alien, check here ? 39b ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40

Itemized deductions (from Schedule A) or your standard deduction (see left margin)

40

41

Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41

42

Exemptions. If line 38 is $155,650 or less, multiply $4,050 by the number on line 6d. Otherwise, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42

43

Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0-

43

44

Tax (see instructions). Check if any from: a ? Form(s) 8814 b ? Form 4972 c ? ___

44

45

Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . . . . . . . . .

45

46

Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . . . . . . . .

46

47

Add lines 44, 45, and 46 . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

?

47

48

Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . .

48

49

Credit for child and dependent care expenses. Attach Form 2441

49

50

Education credits from Form 8863, line 19 . . . . . . . . . . . . . . . . . .

50

51

Retirement savings contributions credit. Attach Form 8880 . . . . .

51

52

Child tax credit. Attach Schedule 8812, if required . . . . . . . . . . . .

52

53

Residential energy credit. Attach Form 5695 . . . . . . . . . . . . . . . .

53

54

Other credits from Form: a ? 3800 b ? 8801 c ?

54

55

Add lines 48 through 54. These are your total credits . . . . . . . . . . . . . . . . . . . . . . . . . . .

55

56

Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- . . . . . . . . . . . . . .

?

56

Other Taxes

57

Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57

58

Unreported social security and Medicare tax from Form: a ? 4137 b ? 8919 . . . . . . . . .

58

59

Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required

59

60a

Household employment taxes from Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60a

b

First-time homebuyer credit repayment. Attach Form 5405 if required . . . . . . . . . . . . .

60b

61

Health care: individual responsibility (see instructions)

Full-year coverage

?

61

62

Taxes from: a ? Form 8959 b ? Form 8960 c ? Instructions; enter code(s) _ _ _ _ _ _ _

62

63

Add lines 56 through 62. This is your total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

?

63

Payments

64

Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . .

64

If you have a qualifying child, attach Schedule EIC.

65

2016 estimated tax payments and amount applied from 2015 return

65

66a

Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . . . . .

66a

b

Nontaxable combat pay election . . . .

66b

67

Additional child tax credit. Attach Schedule 8812 . . . . . . . . . . . . . .

67

68

American opportunity credit from Form 8863, line 8 . . . . . . . . . . . .

68

69

Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . . . . .

69

70

Amount paid with request for extension to file . . . . . .. . . . . . . . . .

70

71

Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . . .

71

72

Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . . . .

72

73

Credits from Form: a ? 2439 b ? Reserved c ? 8885 d ?

73

74

Add lines 64, 65, 66a, and 67 through 73. These are your total payments . . . . . . . . . . .

?

74

Refund

75

If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid

75

76a

Amount of line 75 you want refunded to you. If Form 8888 is attached, check here . . ?

?

76a

Direct deposit? See instructions.

? b

Routing number

? c Type: ? Checking ? Savings

? d

Account number

77

Amount of line 75 you want applied to your 2017 estimated tax ?

77

Amount You Owe

78

Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

?

78

79

Estimated tax penalty (see instructions) . . .. . . . . . . . . . . . . . . .

79

Third Party Designee

Do you want to allow another person to discuss this return with the IRS (see instructions)? ? Yes. Complete below. ? 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 complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

?

Your signature Carl Conch

Date

Your occupation Pie Maker

Daytime phone number

Spouse's signature. If a joint return, bothmust sign. Mary Duval

Date

Spouse's occupation Homemaker

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.
www.irs.gov/form1040				Form 1040 (2016)