FACTS 1) Robert J. and Sally L. Jones are married and file a joint return. Robert is self-employed as a dentist, and Sally is a college professor. Robert and Sally have three children. The oldest is Vince who lives at home and attends law school full-time at the University of Cincinnati. He worked part-time during the year, earning $1,500, which he spent for his own support. Robert and Sally provided $6,000 toward Vince's support (including $4,000 for Vince's fall tuition). They also provided over half the support of their daughter, Joan, who is a full-time student at Edgecliff College in Cincinnati. Joan worked part-time as an independent contractor during the year, earning $4,900. Joan lived at home until she was married in December of 20xx. She filed a joint return with her husband, Patrick, who earned $40,000 during the year. Jennifer is the youngest and lived in the Jones' home for the entire year. The Joneses provide you with the following additional information: Robert and Sally would like to take advantage on their return for any educational expenses paid for their children. You may assume that the educational expenses were included on Form 1098-T for the current year. And, you may assume that the prior year's Form 1098-T had both boxes 2 and 7 checked. The Joneses do not want to contribute to the presidential election campaign. The Joneses live at 621 Franklin Avenue, Cincinnati, OH 45211. Robert's birthday is 3/5/1967 and SSN 333-45-6666 Sally's birthday is 4/24/1970and SSN 566-77-8888 Vince's birthday is 11/6/1998 and SSN 576-18-7928 Joan's birthday is 2/1/1999 and SSN 575-92-4321 Jennifer's birthday is 12/12/2003 and SSN 613-97-8465 The Joneses do not have any foreign bank accounts or trusts . 2) Sally is a lecturer at Xavier University in Cincinnati, where she earned $30,000. The university withheld federal income tax of $3,375, state income tax of $900, Cincinnati city income tax of $375, $1,860 of SS tax and $435 of Medicare tax. She also worked part of the year for Delta Airlines. Delta paid her $10,000 in salary, and withheld federal income tax of $1,125, state income tax of $300, Cincinnati city income tax of $125, $620 for SS tax, and $145 for Medicare tax. NOTE: You will need to create partial Form W-2s as the supporting document. Be sure to include the employer's name and fill in the applicable income, withholding, etc. You do not need the tax ID information for the supporting form info to populate to the primary form. 3) The Joneses received $800 of interest from State Savings Bank on a joint account. They received interest of $1,000 on City of Cincinnati bonds they bought in January with the proceeds of a loan from Third National Bank of Cincinnati. They paid interest of $1,100 on the loan. Robert received a dividend of $540 on General Bicycle Corporation stock he owns. Sally received a dividend of $390 on Acme Clothing Corporation stock she owns. Robert and Sally received a dividend of $865 on jointly owned stock in Maple Company. All of the dividends received in 20xx are qualifying dividends. NOTE: You will need to create partial Form 1099s as the supporting document. Be sure to include the payer's name and fill in the applicable income, withholding, etc. You do not need the tax ID information for the supporting form info to populate to the primary form. 4) Robert practices under the name Robert J. Jones, DDS." His business is located at 645 West Avenue, Cincinnati, OH 45211, and his employer identification number is 01-2222222. NOTE: For the "type of business choose "Health Care and Social AssistanceAmbulatory Health Care Services." You should then be able to find the applicable business code from the drop down menu. You may also assume that Robert did NOT make any payments requiring Form 1099. Robert's gross receipts during the year were $111,000. Robert uses the cash method of accounting for his business. Robert's business expenses are as follows: a. Advertising $1,200 b. Professional dues 490 c. Professional journals 360 d. Contributions to employee benefit plans_2,000 e. Malpractice insurance 3,200 f. Fine for overbilling State of Ohio for work performed on welfare patient 5,000 g. Insurance on office contents 720 h. Interest on money borrowed to refurbish office i. Accounting services j. Miscellaneous office expense k. Office rent 1. Dental supplies m. Utilities and telephone n. Wages 0. Payroll taxes 600 2,100 388 12,000 7,672 3,360 30,000 2,400 In June, Robert decided to refurbish his office. This project was completed and the assets placed in service on July 1. Robert's expenditures included $8,000 for new office furniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a new computer. Robert did not elect to use Section 179 immediate expensing and did not claim any bonus depreciation. 5) Sally's mother, Sarah, died on July 2, 2013, leaving Sally her entire estate. Included in the estate was Sarah's residence (325 Oak Street, Cincinnati, OH 45211). Sarah's basis in the residence was $30,000. The fair market value of the residence on July 2, 2013 was $ 155,000. The property was distributed to Sally on January 1, 2014. The Joneses have held the property as rental property and have managed it themselves. From January 1, 2014 until June 30, 20xx, they rented the house to the same tenant. The tenant was transferred to a branch office in CA and moved out at the end of June. Since they did not want to bother finding a new tenant, Robert and Sally sold the house on June 30, 20xx. They received $140,000 for the house and land ($15,000 for land and $125,000 is allocable to the house), less a 6 percent commission charged by the broker. They had depreciated the house using the MACRS rules and conventions applicable to residential real estate. To compute depreciation on the house, the Joneses had allocated $15,000 of the property's basis to the land on which the house is located. The Joneses collected rent of $1,000 a month during the six months the house was occupied during the year. They incurred the following related expenses during this period: Property insurance Property taxes Maintenance Depreciation (to be computed) $500 800 465 ? 6) The Joneses sold 200 shares of Capp Corporation stock on September 3, 20xx, for $42 a share (minus a $50 commission). The Joneses received the stock from Robert's father on June 25, 1992, as a wedding present. Robert's father originally purchased the stock for $10 per share in 1978. The stock was valued at $14.50 per share on the date of the gift. No gift tax was paid on the gift. 7) Sally is required by Xavier University to visit several high schools in the Cincinnati area to evaluate Xavier University students who are doing their practice teaching. However, she is not reimbursed for the expenses she incurs in doing this. During the spring semester (January through April, 20xx), she drove her personal automobile 6,800 miles in fulfilling this obligation. Sally drove an additional 6,700 miles during 20xx. She has been using the car since June 30 of the prior year. 8) Robert and Sally have given you a file containing the following receipts for expenditures during the year: Medicine and drugs (net of insurance reimbursement) $ 376 Doctor and hospital bills (net of insurance reimbursement) 1,148 Medical insurance premiums withheld from Sally's paycheck ($110/month) 1,320 Penalty for underpayment of last year's state income tax 15 Real estate taxes on personal residence 4,762 Interest on home mortgage (paid to Home State Savings & Loan) 8,250 Interest on credit cards (consumer purchases) 595 Cash contribution to St. Matthew's church 13,080 Payroll deductions for Sally's contributions to the United Way 150 Professional dues (Sally) 325 Professional subscriptions (Sally) 245 Fee for preparation of prior year tax return, paid April 12, 20xx 500 9) The Joneses filed their prior year federal, state, and local returns on April 12, 20xx. They paid the following additional prior year taxes with their returns: federal income taxes of $630, state income taxes of $250, and city income taxes of $75. 10) The Joneses made timely estimated federal income tax payments of $1,500 each quarter during 20xx. They made estimated state income tax payments of $300 each quarter and estimated city income tax payments of $160 each quarter. The Joneses made all fourth quarter payments on December 31, 20xx. They would like to receive a refund for any overpayments. FACTS 1) Robert J. and Sally L. Jones are married and file a joint return. Robert is self-employed as a dentist, and Sally is a college professor. Robert and Sally have three children. The oldest is Vince who lives at home and attends law school full-time at the University of Cincinnati. He worked part-time during the year, earning $1,500, which he spent for his own support. Robert and Sally provided $6,000 toward Vince's support (including $4,000 for Vince's fall tuition). They also provided over half the support of their daughter, Joan, who is a full-time student at Edgecliff College in Cincinnati. Joan worked part-time as an independent contractor during the year, earning $4,900. Joan lived at home until she was married in December of 20xx. She filed a joint return with her husband, Patrick, who earned $40,000 during the year. Jennifer is the youngest and lived in the Jones' home for the entire year. The Joneses provide you with the following additional information: Robert and Sally would like to take advantage on their return for any educational expenses paid for their children. You may assume that the educational expenses were included on Form 1098-T for the current year. And, you may assume that the prior year's Form 1098-T had both boxes 2 and 7 checked. The Joneses do not want to contribute to the presidential election campaign. The Joneses live at 621 Franklin Avenue, Cincinnati, OH 45211. Robert's birthday is 3/5/1967 and SSN 333-45-6666 Sally's birthday is 4/24/1970and SSN 566-77-8888 Vince's birthday is 11/6/1998 and SSN 576-18-7928 Joan's birthday is 2/1/1999 and SSN 575-92-4321 Jennifer's birthday is 12/12/2003 and SSN 613-97-8465 The Joneses do not have any foreign bank accounts or trusts . 2) Sally is a lecturer at Xavier University in Cincinnati, where she earned $30,000. The university withheld federal income tax of $3,375, state income tax of $900, Cincinnati city income tax of $375, $1,860 of SS tax and $435 of Medicare tax. She also worked part of the year for Delta Airlines. Delta paid her $10,000 in salary, and withheld federal income tax of $1,125, state income tax of $300, Cincinnati city income tax of $125, $620 for SS tax, and $145 for Medicare tax. NOTE: You will need to create partial Form W-2s as the supporting document. Be sure to include the employer's name and fill in the applicable income, withholding, etc. You do not need the tax ID information for the supporting form info to populate to the primary form. 3) The Joneses received $800 of interest from State Savings Bank on a joint account. They received interest of $1,000 on City of Cincinnati bonds they bought in January with the proceeds of a loan from Third National Bank of Cincinnati. They paid interest of $1,100 on the loan. Robert received a dividend of $540 on General Bicycle Corporation stock he owns. Sally received a dividend of $390 on Acme Clothing Corporation stock she owns. Robert and Sally received a dividend of $865 on jointly owned stock in Maple Company. All of the dividends received in 20xx are qualifying dividends. NOTE: You will need to create partial Form 1099s as the supporting document. Be sure to include the payer's name and fill in the applicable income, withholding, etc. You do not need the tax ID information for the supporting form info to populate to the primary form. 4) Robert practices under the name Robert J. Jones, DDS." His business is located at 645 West Avenue, Cincinnati, OH 45211, and his employer identification number is 01-2222222. NOTE: For the "type of business choose "Health Care and Social AssistanceAmbulatory Health Care Services." You should then be able to find the applicable business code from the drop down menu. You may also assume that Robert did NOT make any payments requiring Form 1099. Robert's gross receipts during the year were $111,000. Robert uses the cash method of accounting for his business. Robert's business expenses are as follows: a. Advertising $1,200 b. Professional dues 490 c. Professional journals 360 d. Contributions to employee benefit plans_2,000 e. Malpractice insurance 3,200 f. Fine for overbilling State of Ohio for work performed on welfare patient 5,000 g. Insurance on office contents 720 h. Interest on money borrowed to refurbish office i. Accounting services j. Miscellaneous office expense k. Office rent 1. Dental supplies m. Utilities and telephone n. Wages 0. Payroll taxes 600 2,100 388 12,000 7,672 3,360 30,000 2,400 In June, Robert decided to refurbish his office. This project was completed and the assets placed in service on July 1. Robert's expenditures included $8,000 for new office furniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a new computer. Robert did not elect to use Section 179 immediate expensing and did not claim any bonus depreciation. 5) Sally's mother, Sarah, died on July 2, 2013, leaving Sally her entire estate. Included in the estate was Sarah's residence (325 Oak Street, Cincinnati, OH 45211). Sarah's basis in the residence was $30,000. The fair market value of the residence on July 2, 2013 was $ 155,000. The property was distributed to Sally on January 1, 2014. The Joneses have held the property as rental property and have managed it themselves. From January 1, 2014 until June 30, 20xx, they rented the house to the same tenant. The tenant was transferred to a branch office in CA and moved out at the end of June. Since they did not want to bother finding a new tenant, Robert and Sally sold the house on June 30, 20xx. They received $140,000 for the house and land ($15,000 for land and $125,000 is allocable to the house), less a 6 percent commission charged by the broker. They had depreciated the house using the MACRS rules and conventions applicable to residential real estate. To compute depreciation on the house, the Joneses had allocated $15,000 of the property's basis to the land on which the house is located. The Joneses collected rent of $1,000 a month during the six months the house was occupied during the year. They incurred the following related expenses during this period: Property insurance Property taxes Maintenance Depreciation (to be computed) $500 800 465 ? 6) The Joneses sold 200 shares of Capp Corporation stock on September 3, 20xx, for $42 a share (minus a $50 commission). The Joneses received the stock from Robert's father on June 25, 1992, as a wedding present. Robert's father originally purchased the stock for $10 per share in 1978. The stock was valued at $14.50 per share on the date of the gift. No gift tax was paid on the gift. 7) Sally is required by Xavier University to visit several high schools in the Cincinnati area to evaluate Xavier University students who are doing their practice teaching. However, she is not reimbursed for the expenses she incurs in doing this. During the spring semester (January through April, 20xx), she drove her personal automobile 6,800 miles in fulfilling this obligation. Sally drove an additional 6,700 miles during 20xx. She has been using the car since June 30 of the prior year. 8) Robert and Sally have given you a file containing the following receipts for expenditures during the year: Medicine and drugs (net of insurance reimbursement) $ 376 Doctor and hospital bills (net of insurance reimbursement) 1,148 Medical insurance premiums withheld from Sally's paycheck ($110/month) 1,320 Penalty for underpayment of last year's state income tax 15 Real estate taxes on personal residence 4,762 Interest on home mortgage (paid to Home State Savings & Loan) 8,250 Interest on credit cards (consumer purchases) 595 Cash contribution to St. Matthew's church 13,080 Payroll deductions for Sally's contributions to the United Way 150 Professional dues (Sally) 325 Professional subscriptions (Sally) 245 Fee for preparation of prior year tax return, paid April 12, 20xx 500 9) The Joneses filed their prior year federal, state, and local returns on April 12, 20xx. They paid the following additional prior year taxes with their returns: federal income taxes of $630, state income taxes of $250, and city income taxes of $75. 10) The Joneses made timely estimated federal income tax payments of $1,500 each quarter during 20xx. They made estimated state income tax payments of $300 each quarter and estimated city income tax payments of $160 each quarter. The Joneses made all fourth quarter payments on December 31, 20xx. They would like to receive a refund for any overpayments