Document Review Simulation - Emily Clark - FALL 2019 NOTE: All you will turn in for grading is page 1 of this document. Based on the interview notes and the documents below, calculate the following amounts which would be reported on her 2018 Form 1040. If the amount is negative, put a minus (-) before the number. If the amount is zero, write $0. 1. Wages, salaries, tips, etc. 2. Taxable 401 (k) distribution 3. Business income or (deductible loss) 4. Rental real estate income or (deductible loss) 5. Taxable unemployment compensation 6. Taxable other income 7. Student loan interest deduction 8. Qualified business income (QBI) deduction 9. Lifetime learning credit (after limitations) 10. Child tax credit 11. Additional tax on qualified retirement plan 12. Filing Status 1. Emilly Clark (DOR 04/29/1978) is single and has ona young daughter Madison (DOB 07/91/2012) who lived with her all year. Emily was unemployed for two months in 2018 and cashed in her 401(k) saving to pay household expenses. She took courses this year at the community College to improve her job sklusa a health aide. 2 Emily tells you that she has total bingo winnings of $3,900 (no W-2Gs were issued) but also $2,600 of bingo losses. 3. After her period of unemployment, Emily started a part-time business as a housecleaner. She has documentation for the following income and expenses: Fees received $48,000 Supplies 9,620 Advertising expenses 1,600 Business gifts to 20 clients ($100 value per client gift) 2,000 Business computer purchased and put into service 12/1/18 3,150 Emily would like to take the maximum deduction for these expenses in 2018. 4. Emily purchased a rent house on 1/2/2018 for $200,000 $150,000 allocated to the structure and $50,000 allocated to the land). She immediately rented it and has the following income and expenses for 2018: Rental income received ($800 x 512) $9,600 Mortgage interest 7,500 Real estate taxes 4,560 Maintenance expense 1.140 Homeowner's insurance 2.800 Emily actively participates in the management of the rent house but is not a real estate professional. The rental activity is not a qualified trade/business 5. Emily tells you in the interview that she found a Rolex watch on the sidewalk near her home which she had appraised at $2.000 She kept the watch after being unable to find the rightful owner LOOK 200.00 SALA RETIREMENT HOME Te WOT BOTH OTHEET YOUR CITY, STATE DUP 3,800,00 MILY CLARK 130 PENNINGTON PLACE YOUR CITY, STATE ZIP Me YS 25-600XOOOX 33.000 DO WC 2238109 W-2 Wade and Tax 2018 Corso benedig Teg EDERAL Textum neserver ce-filem 32-700XOXXX 3,500.00 1900 00 DAVIDSON INC 25 NORTHRIDGE AVE YOUR CITY, STATE ZIP DO 450.00 EMILY CLARK 129 PENNINGTON PLACE YOUR CITY, STATE ZIP YS 39-700XXXX 3.500.00 21000 W-2 Wage and Tax 2018 Tad as FEDER Tas Raum CORREGTE ched 2.700.00 2018 Government Pomments STATE UNEMPLOYMENT COMMIS 1003 GOVERNMENT PLAZA YOUR CITY STATE ZIP 4321 MESIN RIPOTI 36-T0oXXX 250.00-XXXX PORNIS ULY CLARK Re 1000. Benin $200 copy For Rent Thi PENNINGTON PLACE py YOUR CITY STATE ZIP RTG Dry- CORRECTED checked nie en s PAYERS nams, stres country, and IP or foreign , cry or code N. 1545-070 Distributions From Retirement Plans Insurance Contracts, etc. 2.000.00 2a Taxable anunt 2018 KENT STATE BANK FOR SALEM RETIREMENT HOME 401(K) 743 COLQUITT WAY YOUR CITY, STATE ZIP for 1099-R 2,000.00 tela old Dan ce Copy B Report this Income on your federadox return this form shows federal income tax withheld in box4, attach the copy to your retum 91 2000 EN EMILY CLARK Trum That buto DI 129 PENNINGTON PLACE Cayo Wat ara poco YOUR CITY STATE ZIP 10 A PARTE diHow T1ODOR 2018 CORRECTED (if checked PEOPINBLENDERS des city or bowi, ale or OMB No. 1566-1573 province country, 2 or foreign postalde, and telephone number FINANCIAL AID PARTNERS Student 666 LINCOLN Loan Interest Statement YOUR CITY, STATE ZIP For 1098-E RECIPIENTS TIN BORROWER'S TIN bonitat acerved by lendur Copy B 38-SOOXXXX 259-00-XXXX 800.00 For Borrower BORROWERS nante This is important tax W on and labong EMILY CLARK furnished to the AB you are required to dea Street adidas including spl. 10.) matum, a dence perally or other 129 PENNINGTON PLACE sanction may be City or own, alte or prownice, country, and ZP or foreign postal code opowd on you the 13 Games that an YOUR CITY, STATE ZIP underpayment of tax resuha because you Account number soo instructional cked, bor 1 does not include loon origination overstated a deduction een ander capital pencarcel for loans made before lor student loan interest Soglomby L 2004 For 1098-E keep for your records www.dragoufon 1000 Department of the Treasury - Internal Revenue Service FILER Saretruet acon, aty or town, state or ProCO.CO foreign portal code, and talephone number CORRECTED .ZIP Paterc olor quired in andre opers $ 2,800.00 OMB No. 1545-1574 2018 DREW COLLEGE 1000 COLLEGE AVE YOUR CITY, STATE ZIP Tuition Statement For 1098-T oral railution changed FRLER ployer lentication no. 35-500XXXX STUDENT Samo c STUCENT'S THE 259-00-XXXX but this box is checked your reporting method for 2018 Copy B For Student 4 Adjustments prier year for 5 Sc h ips of grants This is important fax EMILY CLARK Muomends to scholarsh for a prior you a 7 Chened that in bol dog arents for a ne penod Street adress (noluding pt. no.) 129 PENNINGTON PLACE Cay or low state ce po c o , ed ZP or foriga postal code YOUR CITY, STATE ZIP Service Promo Acc. 1o. (300 rate) 8 Check bine studenti Form 1098-T roup for your records) turnished to the HS. Thism be used to cerplate Form 3 to cien eduthen credit. Give it to the la parts prepare that ratum o Chicrod ta gradit Sludan March 2010 10 In contrac b /refund www.sportowa Deo act of the Ther -intonal Revanje Sonica Document Review Simulation - Emily Clark - FALL 2019 NOTE: All you will turn in for grading is page 1 of this document. Based on the interview notes and the documents below, calculate the following amounts which would be reported on her 2018 Form 1040. If the amount is negative, put a minus (-) before the number. If the amount is zero, write $0. 1. Wages, salaries, tips, etc. 2. Taxable 401 (k) distribution 3. Business income or (deductible loss) 4. Rental real estate income or (deductible loss) 5. Taxable unemployment compensation 6. Taxable other income 7. Student loan interest deduction 8. Qualified business income (QBI) deduction 9. Lifetime learning credit (after limitations) 10. Child tax credit 11. Additional tax on qualified retirement plan 12. Filing Status 1. Emilly Clark (DOR 04/29/1978) is single and has ona young daughter Madison (DOB 07/91/2012) who lived with her all year. Emily was unemployed for two months in 2018 and cashed in her 401(k) saving to pay household expenses. She took courses this year at the community College to improve her job sklusa a health aide. 2 Emily tells you that she has total bingo winnings of $3,900 (no W-2Gs were issued) but also $2,600 of bingo losses. 3. After her period of unemployment, Emily started a part-time business as a housecleaner. She has documentation for the following income and expenses: Fees received $48,000 Supplies 9,620 Advertising expenses 1,600 Business gifts to 20 clients ($100 value per client gift) 2,000 Business computer purchased and put into service 12/1/18 3,150 Emily would like to take the maximum deduction for these expenses in 2018. 4. Emily purchased a rent house on 1/2/2018 for $200,000 $150,000 allocated to the structure and $50,000 allocated to the land). She immediately rented it and has the following income and expenses for 2018: Rental income received ($800 x 512) $9,600 Mortgage interest 7,500 Real estate taxes 4,560 Maintenance expense 1.140 Homeowner's insurance 2.800 Emily actively participates in the management of the rent house but is not a real estate professional. The rental activity is not a qualified trade/business 5. Emily tells you in the interview that she found a Rolex watch on the sidewalk near her home which she had appraised at $2.000 She kept the watch after being unable to find the rightful owner LOOK 200.00 SALA RETIREMENT HOME Te WOT BOTH OTHEET YOUR CITY, STATE DUP 3,800,00 MILY CLARK 130 PENNINGTON PLACE YOUR CITY, STATE ZIP Me YS 25-600XOOOX 33.000 DO WC 2238109 W-2 Wade and Tax 2018 Corso benedig Teg EDERAL Textum neserver ce-filem 32-700XOXXX 3,500.00 1900 00 DAVIDSON INC 25 NORTHRIDGE AVE YOUR CITY, STATE ZIP DO 450.00 EMILY CLARK 129 PENNINGTON PLACE YOUR CITY, STATE ZIP YS 39-700XXXX 3.500.00 21000 W-2 Wage and Tax 2018 Tad as FEDER Tas Raum CORREGTE ched 2.700.00 2018 Government Pomments STATE UNEMPLOYMENT COMMIS 1003 GOVERNMENT PLAZA YOUR CITY STATE ZIP 4321 MESIN RIPOTI 36-T0oXXX 250.00-XXXX PORNIS ULY CLARK Re 1000. Benin $200 copy For Rent Thi PENNINGTON PLACE py YOUR CITY STATE ZIP RTG Dry- CORRECTED checked nie en s PAYERS nams, stres country, and IP or foreign , cry or code N. 1545-070 Distributions From Retirement Plans Insurance Contracts, etc. 2.000.00 2a Taxable anunt 2018 KENT STATE BANK FOR SALEM RETIREMENT HOME 401(K) 743 COLQUITT WAY YOUR CITY, STATE ZIP for 1099-R 2,000.00 tela old Dan ce Copy B Report this Income on your federadox return this form shows federal income tax withheld in box4, attach the copy to your retum 91 2000 EN EMILY CLARK Trum That buto DI 129 PENNINGTON PLACE Cayo Wat ara poco YOUR CITY STATE ZIP 10 A PARTE diHow T1ODOR 2018 CORRECTED (if checked PEOPINBLENDERS des city or bowi, ale or OMB No. 1566-1573 province country, 2 or foreign postalde, and telephone number FINANCIAL AID PARTNERS Student 666 LINCOLN Loan Interest Statement YOUR CITY, STATE ZIP For 1098-E RECIPIENTS TIN BORROWER'S TIN bonitat acerved by lendur Copy B 38-SOOXXXX 259-00-XXXX 800.00 For Borrower BORROWERS nante This is important tax W on and labong EMILY CLARK furnished to the AB you are required to dea Street adidas including spl. 10.) matum, a dence perally or other 129 PENNINGTON PLACE sanction may be City or own, alte or prownice, country, and ZP or foreign postal code opowd on you the 13 Games that an YOUR CITY, STATE ZIP underpayment of tax resuha because you Account number soo instructional cked, bor 1 does not include loon origination overstated a deduction een ander capital pencarcel for loans made before lor student loan interest Soglomby L 2004 For 1098-E keep for your records www.dragoufon 1000 Department of the Treasury - Internal Revenue Service FILER Saretruet acon, aty or town, state or ProCO.CO foreign portal code, and talephone number CORRECTED .ZIP Paterc olor quired in andre opers $ 2,800.00 OMB No. 1545-1574 2018 DREW COLLEGE 1000 COLLEGE AVE YOUR CITY, STATE ZIP Tuition Statement For 1098-T oral railution changed FRLER ployer lentication no. 35-500XXXX STUDENT Samo c STUCENT'S THE 259-00-XXXX but this box is checked your reporting method for 2018 Copy B For Student 4 Adjustments prier year for 5 Sc h ips of grants This is important fax EMILY CLARK Muomends to scholarsh for a prior you a 7 Chened that in bol dog arents for a ne penod Street adress (noluding pt. no.) 129 PENNINGTON PLACE Cay or low state ce po c o , ed ZP or foriga postal code YOUR CITY, STATE ZIP Service Promo Acc. 1o. (300 rate) 8 Check bine studenti Form 1098-T roup for your records) turnished to the HS. Thism be used to cerplate Form 3 to cien eduthen credit. Give it to the la parts prepare that ratum o Chicrod ta gradit Sludan March 2010 10 In contrac b /refund www.sportowa Deo act of the Ther -intonal Revanje Sonica