Check Figures For The Project:

AGI $135,000

Taxable Income $91,725

INDIVIDUAL TAX RETURN PROBLEM 2

Required:

• Use the following information to complete Karl and Ellie Frederickson's 2011 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

• Please use the following facts to prepare the tax return with all the appropriate attached schedules and forms using the Tax ACT software.

Facts:

1. Karl Frederickson is employed as a human resources manager for Toys Unlimited, Inc., and Ellie is a financial planner for her mother's company, Frederickson Investments, Inc., a full service wealth planning firm. They provide the following information:

   • They both want to contribute to the presidential election campaign.

   • They live at 9876 Fighting Irish Lane, South Bend, IN.

   • Karl's birthday is 7/17/1965 and his Social Security number is 555-12-6789.

   • Ellie's birthday is 9/11/1967 and her Social Security number is 987-65-4321.

   • Karl or Ellie do not have any foreign bank accounts or trusts.

2. Karl received a Form W-2 from Toys Unlimited, Inc. that contained the following information: