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enario 4: Kendall and Siena King Directions Using the tax software, complete the tax retum, including Form 1040 and all appropriate forms, schedules, and worksheets.
enario 4: Kendall and Siena King Directions Using the tax software, complete the tax retum, including Form 1040 and all appropriate forms, schedules, and worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. Interview Notes . Kendall and Siena are married and file a joint return. Siena is an employee and received a Form W-2. Kendall is a self-employed driver for Delicious Deliveries. Kendall and Siena had health insurance subsidized by Siena's employer. They paid $3,600 pre-tax in premiums for the year. Kendall provided a statement from the food delivery service that indicated the amount of mileage driven and fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: . -7,200 miles driven while delivering food Insulated box rental: $300 - Vehicle safety inspection (required by Delicious Deliveries): $50 GPS device fee: $120 Kendall's record keeping application shows he also drove 4,125 miles between deliv eries and 4,200 miles driven between his home and his first and last delivery point of the day. Kendall has a separate car for personal use. He bought and started using his second car for business on September 1, 2020. Kendall also kept receipts for the following out-of-pocket expenses: -$100 on tolls $120 for car washes $48 for parking tickets $75 for Personal Protective Equipment (PPE) used during deliveries $150 for snacks and lunches Kendall consumed while working Kendall provided the Form 1099-NEC and Form 1099-K that he received from Delicious Deliveries. Kendall also received $300 in cash tips that were not reported elsewhere. Kendall won $10,000 on a scratch off lottery ticket. He has $3,000 in losing tickets. Siena's brother Quincy moved in with them in December 2020. He's a full-time student working on his PhD. He works part-time and earned $3,800 in 2021. Kendall and Siena pay more than half of Quincy's support. Quincy paid $5,000 in eligible educa- tional expenses with the proceeds from a student loan. Quincy received a Form 1098-T from Yuma College, EIN 37-700XXXX, showing $5,000 in Box 1 and having boxes 8 and 9 checked. Kendall and Siena received the third Economic Impact Payment (EIP 3) in the amount of $2.800 in 2021 Quincy received his own EIP 3 of $1,400 in 2021. Kendall, Siena, and Quincy are U.S. citizens, have valid Social Security numbers, and lived in the United States all year. 12. What is the amount of Kendall's Schedule C gross income? OA. $300 OB. $1,800 OC. $15,245 OD. $17,345
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