Comprehensive Problem 3 1 Ken (age 31) and Amy (age 28) Booth have brought you the following information regarding their income, expenses, and withholding for the year They are unsure which of these items must be used to calculate taxable income Income Ken's salary (salesman) $28,100 Amy's wages (part time nurse) 17,900 Insurance reimbursement for repairs from an auto accident 500 Gift from Uncle George 2,000 Interest income from Lodge State Bank 674 Federal income taxes withheld From Ken's salary 2,200 From Amy's wages 650 Amy owns and operates a computer bookstore named The Disk Drive The store is located at 2000 Broadway Street, Menomonie, WI 54751 During 2015, Amy had the following income and expenses Sales of books $319,240 Expenses Store rental 15,900 Office expense 6,000 Advertising 11,900 City business license 1,000 Payroll 84,550 Payroll taxes 8,468 Utilities 8,000 Other 3,000 Inventory January 1 250,000 December 31 232,000 Purchases during the year 165,000 The previous year was Amy's first year of operating the bookstore Amy and Ken elected to carry forward a $4,752 net operating loss from the first year of business into 2015 (Note Net operating losses are reported on the Other Income line of Form 1040 ) This year, Amy loaned a friend $20,000 so that he could make an investment Instead of making the investment, the friend lost all the money gambling and left for parts unknown Amy has no hope of ever collecting on this bad debt Ken, who ordinarily never gambles, won $25,000 at a casino birthday party for one of his friends This amount should be reported on the Other Income line of Form 1040 The Booths support Ken's parents, Rod (Social Security number 124 80 9050) and Mary (Social Security number 489 37 6676) Booth, who live in their own home Ken and Amy live at 2345 Wilson Avenue, Menomonie, WI, 54751, and their Social Security numbers are 343 75 3456 (Ken) and 123 45 7890 (Amy) Click here to access the tax table to use for this problem You may ignore any related self employment taxes Required Complete the Booth's federal income tax return for 2015 Use Form 1040, Schedule C, Schedule D, and Form 8949 A statement is required to be attached to a return for a nonbusiness bad debt, but this requirement may be ignored for this problem Assume no 1099 B is filed in association with the bad debt when filling out Schedule D Note If an amount box does not require an entry or the answer is zero, enter 0 If required, enter a loss as a negative number on the tax form However, do not enter deductions or other items as negative numbers Hint You may need to complete the other forms before completing the Form 1040 Form 1040 Department of the TreasuryInternal Revenue Service (99) U S Individual Income Tax Return 2015 OMB No 1545 0074 IRS Use Only Foreign country name Foreign province state country Foreign postal code For the year Jan 1Dec 31, 2015, or other tax year beginning , 2015, ending , 20 See separate instructions Your first name and initial Ken Last name Booth Your social security number 343 75 3456 If a joint return, spouse's first name and initial Amy Last name Booth Spouse's social security number 123 45 7890 Home address (number and street) If you have a P O box, see instructions 2345 Wilson Avenue 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) Menomonie, WI 54751 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 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 No of children on 6c who lived with you did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above Add numbers on lines above b Yes Spouse c Dependents (4) If child under age 17 qualifying for child tax credit (see instructions) (1) Firstname Lastname (2) Dependent's social security number (3) Dependent's relationship to you If more than four dependents, see instructions and check here Rod Booth 124 80 9050 Father MaryBooth 489 37 6676 Mother d Total number of exemptions claimed 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 (2015) Form 1040 (2015) Ken Amy Booth 343 75 3456 Page 2 38 Amount from line 37 (adjusted gross income) 38 Tax and Credits 39a Check if You were born before January 2, 1951, Blind Spouse was born before January 2, 1951, Blind Total boxes checked 39a b If your spouse itemizes on a separate return or you were a dual status alien, check here 39b 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, $9,250 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 $154,950 or less, multiply $4,000 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 2015 estimated tax payments and amount applied from 2014 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 2016 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) Date Daytime phone number 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 Ken Booth Your occupation Salesperson Spouse's signature If a joint return, both must sign Amy Booth Date Spouse's occupation Book Store Owner Nurse 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 (2015) SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service (99) Profit or Loss From Business (Sole Proprietorship) Information about Schedule C and its separate instructions is at www irs gov schedulec Attach to Form 1040, 1040NR, or 1041 partnerships generally must file Form 1065 OMB No 1545 0074 2015 Attachment Sequence No 09 Name of proprietor Amy Booth Social security number (SSN) 123 45 7890 A Principal business or profession, including product or service (see instructions) Computer Bookstore B Enter code from instructions 451211 C Business name If no separate business name, leave blank The Disk Drive D Employer ID number (EIN), (see instr ) 999 99 9999 E Business address (including suite or room no ) 2000 Broadway Street City, town or post office, state, and ZIP code Menomonie, WI 54751 F Accounting method (1) Cash (2) Accrual (3) Other (specify) G Did you materially participate in the operation of this business during 2015 If No, see instructions for limit on losses Yes No H If you started or acquired this business during 2015, check here I Did you make any payments in 2015 that would require you to file Form(s) 1099 (see instructions) Yes No J If Yes, did you or will you file required Forms 1099 Yes No Part I Income 1 Gross receipts or sales See instructions for line 1 and check the box if this income was reported to you on Form W 2 and the Statutory employee box on that form was checked 1 2 Returns and allowances 2 3 Subtract line 2 from line 1 3 4 Cost of goods sold (from line 42) 4 5 Gross profit Subtract line 4 from line 3 5 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 Gross income Add lines 5 and 6 7 Part II Expenses Enter expenses for business use of your home only on line 30 8 Advertising 8 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit sharing plans 19 instructions) 9 20 Rent or lease (see instructions) 10 Commissions and fees 10 a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) 11 b Other business property 20b 12 Depletion 12 21 Repairs and maintenance 21 13 Depreciation and section 179 22 Supplies (not included in Part III) 22 expense deduction (not included 23 Taxes and licenses 23 in Part III) (see instructions) 13 24 Travel, meals, and entertainment 14 Employee benefit programs a Travel 24a (other than on line 19) 14 b Deductible meals and 15 Insurance (other than health) 15 entertainment (see instructions) 24b 16 Interest 25 Utilities 25 a Mortgage (paid to banks, etc ) 16a 26 Wages (less employment credits) 26 b Other 16b 27a Other expenses (from line 48) 27a 17 Legal and professional services 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home Add lines 8 through 27a 28 29 Tentative profit or (loss) Subtract line 28 from line 7 29 30 Expenses for business use of your home Do not report these expenses elsewhere Attach Form 8829 unless using the simplified method (see instructions) Simplified method filers only enter the total square footage of (a) your home and (b) the part of your home used for business Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 30 31 Net profit or (loss) Subtract line 30 from line 29 If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13 ) and on Schedule SE, line 2 (If you checked the box on line 1, see instructions) Estates and trusts, enter on Form 1041, line 3 If a loss, you must go to line 32 31 32 If you have a loss, check the box that describes your investment in this activity (see instructions) If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13 ) and on Schedule SE, line 2 (If you checked the box on line 1, see the line 31 instructions) Estates and trusts, enter on Form 1041, line 3 If you checked 32b, you must attach Form 6198 Your loss may be limited 32a 32b All investment is at risk Some investment is not at risk For Paperwork Reduction Act Notice, see the separate instructions Cat No 11334P Schedule C (Form 1040) 2015

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Comprehensive Problem 3-1 Ken (age 31) and Amy (age 28) Booth have brought you the following information regarding their income, expenses, and withholding for the

Comprehensive Problem 3-1

Ken (age 31) and Amy (age 28) Booth have brought you the following information regarding their income, expenses, and withholding for the year. They are unsure which of these items must be used to calculate taxable income.

Income:
Ken's salary (salesman)	$28,100
Amy's wages (part-time nurse)	17,900
Insurance reimbursement for repairs from an auto accident	500
Gift from Uncle George	2,000
Interest income from Lodge State Bank	674
Federal income taxes withheld:
From Ken's salary	2,200
From Amy's wages	650

Amy owns and operates a computer bookstore named "The Disk Drive." The store is located at 2000 Broadway Street, Menomonie, WI 54751. During 2015, Amy had the following income and expenses:

Sales of books	$319,240
Expenses
Store rental	15,900
Office expense	6,000
Advertising	11,900
City business license	1,000
Payroll	84,550
Payroll taxes	8,468
Utilities	8,000
Other	3,000
Inventory
January 1	250,000
December 31	232,000
Purchases during the year	165,000

The previous year was Amy's first year of operating the bookstore. Amy and Ken elected to carry forward a $4,752 net operating loss from the first year of business into 2015. (Note: Net operating losses are reported on the "Other Income" line of Form 1040.)

This year, Amy loaned a friend $20,000 so that he could make an investment. Instead of making the investment, the friend lost all the money gambling and left for parts unknown. Amy has no hope of ever collecting on this bad debt.

Ken, who ordinarily never gambles, won $25,000 at a casino birthday party for one of his friends. This amount should be reported on the "Other Income" line of Form 1040.

The Booths support Ken's parents, Rod (Social Security number 124-80-9050) and Mary (Social Security number 489-37-6676) Booth, who live in their own home. Ken and Amy live at 2345 Wilson Avenue, Menomonie, WI, 54751, and their Social Security numbers are 343-75-3456 (Ken) and 123-45-7890 (Amy).

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

You may ignore any related self-employment taxes.

Required:

Complete the Booth's federal income tax return for 2015. Use Form 1040, Schedule C, Schedule D, and Form 8949. A statement is required to be attached to a return for a nonbusiness bad debt, but this requirement may be ignored for this problem. Assume no 1099-B is filed in association with the bad debt when filling out Schedule D.

Note: If an amount box does not require an entry or the answer is zero, enter "0". If required, enter a "loss" as a negative number on the tax form. However, do not enter deductions or other items as negative numbers.

Hint: You may need to complete the other forms before completing the Form 1040.

Form 1040

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

2015

OMB No. 1545-0074

IRS Use Only

Foreign country name Foreign province/state/country Foreign postal code

For the year Jan. 1Dec. 31, 2015, or other tax year beginning	, 2015, ending , 20	See separate instructions.
Your first name and initial Ken	Last name Booth	Your social security number 343-75-3456
If a joint return, spouse's first name and initial Amy	Last name Booth	Spouse's social security number 123-45-7890
Home address (number and street). If you have a P.O. box, see instructions. 2345 Wilson Avenue	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). Menomonie, WI 54751	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

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 No. of children on 6c who: lived with you did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above Add numbers on lines above
b	Yes	Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	c	Dependents:			(4) If child under age 17 qualifying for child tax credit (see instructions)
	(1)Firstname	Lastname	(2) Dependent's social security number	(3) Dependent's relationship to you
If more than four dependents, see instructions and check here		Rod Booth		124-80-9050	Father
	MaryBooth		489-37-6676	Mother


d	Total number of exemptions claimed . . . . . . . . . . . . . . . . . . . .

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 (2015)

Form 1040 (2015)

Ken & Amy Booth

343-75-3456

Page 2

Amount from line 37 (adjusted gross income)

Tax and Credits

39a

Check if:

{

You were born before January 2, 1951, Blind. Spouse was born before January 2, 1951, Blind.

}

Total boxes checked 39a

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

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, $9,250

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

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

Exemptions. If line 38 is $154,950 or less, multiply $4,000 by the number on line 6d. Otherwise, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

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

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

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

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

Credit for child and dependent care expenses. Attach Form 2441

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

Retirement savings contributions credit. Attach Form 8880 . . .

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

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

Other credits from Form: a 3800 b 8801 c

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

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

Other Taxes

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

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

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

60a

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

60a

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

60b

Health care: individual responsibility (see instructions)

Full-year coverage

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

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

Payments

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

If you have a qualifying child, attach Schedule EIC.

2015 estimated tax payments and amount applied from 2014 return

66a

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

66a

Nontaxable combat pay election . . . . . .

66b

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

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

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

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

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

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

Credits from Form: a 2439 b Reserved c 8885 d

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

Refund

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

76a

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

76a

Direct deposit? See instructions.

Routing number

c Type: Checking Savings

Account number

Amount of line 75 you want applied to your 2016 estimated tax

Amount You Owe

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

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

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)

Date Daytime phone number

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 Ken Booth

Your occupation Salesperson

Spouse's signature. If a joint return, both must sign. Amy Booth

Date

Spouse's occupation Book Store Owner/Nurse

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 (2015)

SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service (99)	Profit or Loss From Business ^{(Sole Proprietorship)} *Information about Schedule C and its separate instructions is at www.irs.gov/schedulec.* Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.	OMB No. 1545-0074
2015 Attachment Sequence No. 09

Name of proprietor Amy Booth	Social security number (SSN) 123-45-7890
A	Principal business or profession, including product or service (see instructions) Computer Bookstore	B Enter code from instructions 451211
C	Business name. If no separate business name, leave blank. The Disk Drive	D Employer ID number (EIN), (see instr.) 999-99-9999
E	Business address (including suite or room no.)	2000 Broadway Street.
	City, town or post office, state, and ZIP code	Menomonie, WI 54751

F	Accounting method:(1) Cash(2) Accrual(3) Other (specify) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
G	Did you "materially participate" in the operation of this business during 2015? If "No," see instructions for limit on losses		Yes	No
H	If you started or acquired this business during 2015, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I	Did you make any payments in 2015 that would require you to file Form(s) 1099? (see instructions) . . . . . . . . . .	Yes	No
J	If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	Yes	No

Part I

Income

1	Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked . . . . . . . . . . . . . . .		1
2	Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
3	Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
4	Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
5	Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
6	Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . . . .	6
7	Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		7

Part II

Expenses. Enter expenses for business use of your home only on line 30.

Advertising . . . . . . . . . . . . . . . .

Office expense (see instructions) . . . .

Car and truck expenses (see

Pension and profit-sharing plans . . . .

instructions) . . . . . . . . . . . . . . .

Rent or lease (see instructions): . . . . .

Commissions and fees . . . . . . .

Vehicles, machinery, and equipment

20a

Contract labor (see instructions)

Other business property . . . . . . . . . . .

20b

Depletion . . . . . . . . . . . . . . . . .

Repairs and maintenance . . . . . . . . .

Depreciation and section 179

Supplies (not included in Part III) . . .

expense deduction (not included

Taxes and licenses . . . . . . . . . . . . . . .

in Part III) (see instructions) . . .

Travel, meals, and entertainment: . . .

Employee benefit programs

Travel . . . . . . . . . . . . . . . . . . . . . . . .

24a

(other than on line 19) . . . . . . .

Deductible meals and

Insurance (other than health) . .

entertainment (see instructions) . . . .

24b

Interest: . . . . . . . . . . . . . . . . . .

Utilities . . . . . . . . . . . . . . . . . . . . . . .

Mortgage (paid to banks, etc.) . .

16a

Wages (less employment credits) . . . .

Other . . . . . . . . . . . . . . . . . . . .

16b

27a

Other expenses (from line 48) . . . . .

27a

Legal and professional services

Reserved for future use . . . . . . . . . .

27b

Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . . . . . . . . .

Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: . Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2.
(If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.	}
If a loss, you must go to line 32.

32	If you have a loss, check the box that describes your investment in this activity (see instructions).	}
	If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited.	32a 32b	All investment is at risk. Some investment is not at risk.