Comprehensive Problem 1 Tax Return Individual Walter Newman Due Oct 12, 2015 Points 35 Instructions Please complete the required federal individual income tax return forms for the following taxpayer For purposes of this assignment you should ignore attaching federal Form 8582 Unless instructed otherwise, the information provided is for the taxpayers 2014 tax year Please complete his entire 2014 tax return, including required forms and schedules Ignore the requirement to attach the form(s) W 2 to the front page of the Form 1040 Also, if required information is missing, use reasonable assumptions to fill in the gaps Walter Newman is your client Walter and his now ex wife Cindi were legally divorced on March 1 of the year for which you are completing the tax return As of the end of year, Walter was single Walter and Cindi had only one child, a girl named Alyssa As part of the divorce decree, Walter was given custody of Alyssa, and Cindi was required to pay child support for Alyssas care as well as alimony to Walter until he remarries or dies Because Cindi is making child support payments, the divorce decree provided that Cindi is permitted to claim the tax dependency exemption for Alyssa until Alyssa no longer qualifies as a tax dependent of her parents, and the decree obligates Walter to sign and or file any required forms to cause this result to occur Walter rents a home (separate from Cindi) that he pays for himself Alyssa lives with Walter most of the time, but she visits and stays with her mother every other weekend and most holidays During the year, Alyssa stayed at Cindis house a total of 74 nights The following information relates to Walters tax year Walters social security number is 484 43 4655 date of birth is February 10, 1987 Cindis social security number is 484 12 2046 date of birth is October 1, 1990 Alyssas social security number is 484 34 6828 date of birth is June 12, 2004 Walters mailing address is 3600 Rose Petal Drive, Madison, Wisconsin 53562 Walter, Cindi, and Alyssa are U S citizens Walter Newman received the following income during the year Company Gross Wages Federal Income Tax Withholding State Income Tax Withholding Central Wisconsin Heating and Air 39,730 7,330 2,550 All applicable and appropriate payroll taxes were withheld by the employer During the year, Walter also received the following Child Support Payment from Cindi Newman $18,200 Alimony Payment from Cindi Newman $ 9,400 Gift from his father to help with legal bills $ 8,500 Interest income on U S Treasury Bond $ 500 Interest income of Madison City Bond (municipal) $ 400 Interest income from First Bank of Madison $ 265 Life insurance proceeds on the death of his mother $45,000 Walter is a 50 owner in a friends company, Bright Day Flowers (BDF) BDF is a Subchapter S corporation The company reported ordinary business income for the year of $28,000 Walter acquired the stock several years ago BDFs employer identification number is 56 2424888 Walter won 10 tickets through a radio contest to the touring broadway style production of Wholesome The value of the tickets was $130 each Walter took his friends from work to the production Walter lost his job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force He collected $1,360 in unemployment benefits He is currently looking for another job Walter did not own, control or manage any foreign bank accounts nor was he a grantor or beneficiary of a foreign trust during the tax year Through work Walter was provided with certain benefits as part of his employment Group term life insurance coverage of $50,000 Cost to cover Walter for the company for the tax year is $320 Access to the company photocopy machine Walter estimates he made $45 worth of copies during the year primarily for use with his church group activities Walter gave $3,900 to his church He paid $3,250 in mortgage interest and $1,700 in property taxes on his home He reported no other itemized deductions than the ones noted in this data Walter does not want to contribute to the Presidential Election Campaign He would like to receive a refund (if any) of any tax he may have overpaid for the year His preferred method of receiving the refund is by direct deposit His bank information is Routing number 272359122 checking accounting number is 1089566

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Comprehensive Problem 1: Tax Return-Individual Walter Newman Due: Oct. 12, 2015 Points: 35 Instructions: Please complete the required federal individual income tax return forms for

Comprehensive Problem 1: Tax Return-Individual Walter Newman

Due: Oct. 12, 2015

Points: 35

Instructions:

Please complete the required federal individual income tax return forms for the following taxpayer. For purposes of this assignment you should ignore attaching federal Form 8582. Unless instructed otherwise, the information provided is for the taxpayers 2014 tax year. Please complete his entire 2014 tax return, including required forms and schedules. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. Also, if required information is missing, use reasonable assumptions to fill in the gaps.

Walter Newman is your client. Walter and his now ex-wife Cindi were legally divorced on March 1 of the year for which you are completing the tax return. As of the end of year, Walter was single. Walter and Cindi had only one child, a girl named Alyssa. As part of the divorce decree, Walter was given custody of Alyssa, and Cindi was required to pay child support for Alyssas care as well as alimony to Walter until he remarries or dies. Because Cindi is making child support payments, the divorce decree provided that Cindi is permitted to claim the tax dependency exemption for Alyssa until Alyssa no longer qualifies as a tax dependent of her parents, and the decree obligates Walter to sign and/or file any required forms to cause this result to occur.

Walter rents a home (separate from Cindi) that he pays for himself. Alyssa lives with Walter most of the time, but she visits and stays with her mother every other weekend and most holidays. During the year, Alyssa stayed at Cindis house a total of 74 nights.

The following information relates to Walters tax year:

Walters social security number is 484-43-4655; date of birth is February 10, 1987
Cindis social security number is 484-12-2046; date of birth is October 1, 1990
Alyssas social security number is 484-34-6828; date of birth is June 12, 2004
Walters mailing address is 3600 Rose Petal Drive, Madison, Wisconsin 53562
Walter, Cindi, and Alyssa are U.S .citizens

Walter Newman received the following income during the year:

Company	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
Central Wisconsin Heating and Air	39,730	7,330	2,550

All applicable and appropriate payroll taxes were withheld by the employer.

During the year, Walter also received the following:

Child Support Payment from Cindi Newman $18,200

Alimony Payment from Cindi Newman $ 9,400

Gift from his father to help with legal bills $ 8,500

Interest income on U.S. Treasury Bond $ 500

Interest income of Madison City Bond (municipal) $ 400

Interest income from First Bank of Madison $ 265

Life insurance proceeds on the death of his mother $45,000

Walter is a 50% owner in a friends company, Bright Day Flowers (BDF). BDF is a Subchapter S corporation. The company reported ordinary business income for the year of $28,000. Walter acquired the stock several years ago. BDFs employer identification number is 56-2424888.

Walter won 10 tickets through a radio contest to the touring broadway-style production of Wholesome. The value of the tickets was $130 each. Walter took his friends from work to the production.

Walter lost his job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. He collected $1,360 in unemployment benefits. He is currently looking for another job.

Walter did not own, control or manage any foreign bank accounts nor was he a grantor or beneficiary of a foreign trust during the tax year.

Through work Walter was provided with certain benefits as part of his employment:

Group-term life insurance coverage of $50,000. Cost to cover Walter for the company for the tax year is $320.

Access to the company photocopy machine. Walter estimates he made $45 worth of copies during the year primarily for use with his church group activities.

Walter gave $3,900 to his church. He paid $3,250 in mortgage interest and $1,700 in property taxes on his home. He reported no other itemized deductions than the ones noted in this data.

Walter does not want to contribute to the Presidential Election Campaign. He would like to receive a refund (if any) of any tax he may have overpaid for the year. His preferred method of receiving the refund is by direct deposit. His bank information is: Routing number: 272359122; checking accounting number is 1089566