Forms 1099-R \& SSA 1099 \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ FORM SSA-1099 - SOCIAL SECURITY BENEFIT STATEMENT } \\ \hline \multicolumn{4}{|c|}{022 - PART OF YOUR SOCIAL SECURITY BENEFITS SHOWN IN BOX 5 MAY BE TAXABLE INCOME. } \\ \hline \multicolumn{2}{|r|}{ JEFF PICKENS } & \multicolumn{2}{|c|}{\begin{tabular}{l} Box 2. Beneliciary's Secial Sacurv Number \\ 12700XXXX \end{tabular}} \\ \hline \begin{tabular}{r} Box 3. Eenatits Paid in 2022 \\ $12,000.00 \end{tabular} & \multicolumn{2}{|c|}{ Box 4. Banefits Peppoid to SSA in 2022} & \begin{tabular}{r} Box 5. Net Benefits for 2022 (Box 3 minus Box 4) \\ $12,000,00 \end{tabular} \\ \hline \multirow{3}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} DESCRIPTION OF AMOUNT IN BOX 3 \\ Paid by check or direct deposit: $12,000,00 \end{tabular}}} & \multicolumn{2}{|r|}{ DESCRIPTION OF AMOUNT IN BOX 4} \\ \hline & & \multicolumn{2}{|c|}{ Box 8. Volumary Federal Income Tax Withholding } \\ \hline & & \multicolumn{2}{|c|}{\begin{tabular}{l} Box 7. Address \\ 5 PEBBLE LANE \\ YOUR CITY, YOUR STATE, ZIP \end{tabular}} \\ \hline Urafl as of dians 23 & 2022 - Subiect to & \\ \hline Can SSA-1099-SM (5KR20) & DONOT R & RETURN & THIS FORM TO SSA OR IRS \\ \hline \end{tabular} Forms 1099-DIV \& 1098-T Jeff Pickens (DOB 07/15/1954, SSN 127-15-1515) is married to Claire Pickens (DOB 01/30/1959, SSN 128-16-6666), and they elect to file married filing jointly. Jeff is legally blind; he is retired and received Social Security benefits and a pension. Claire works full-time as a store clerk and is also self-employed as a massage therapist. They have a daughter, Shelby Pickens, (DOB 09/03/2003, SSN 129-11-2222) who is a full-time college student in her second year of study. She is pursuing a degree in sociology and does not have a felony drug conviction. She received a Form 1098-T for 2022. Box 7 was not checked on her Form 1098-T for the previous tax year. Shelby spent the summer at home with her parents but lived in an apartment near campus during the school year. Shelby received a scholarship and the terms require that it be used to pay tuition. Jeff and Claire paid the cost of her tuition and course-related books in 2022 not covered by the scholarship. They paid $120 for a parking sticker, $5,500 for a meal plan, $750 for textbooks purchased at the college bookstore, and $100 for access to an online textbook. They are all US citizens and have valid social security numbers (SSNs) and lived in the US the entire year. The couple paid more than half the cost of keeping up a home and support for Shelby. The couple has provided you with documentation for their income and expenses --- see below. You also have obtained the following information from interviewing her: \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ CORRECTED } \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} FILER'S name, street address, city or town, state or province, country, ZIP of \\ foreign postal code, and telephone number \end{tabular}} & \begin{tabular}{l} 1. Payments roceived for \\ qualified tuition and related \\ expenses \end{tabular} & OMB No. 1545-1574 & \\ \hline \multicolumn{2}{|l|}{ BALDWIN UNIVERSITY } & 9,500.00 & & Tuition \\ \hline \multirow{3}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} 3700 BALDWIN AVENUE \\ YOUR CITY, YOUR STATE, ZIP \end{tabular}}} & 2 & & Statement \\ \hline & & & & \\ \hline & & & Form 1098-T & \\ \hline \begin{tabular}{l} FlLER'S employer identification no. \\ 899.7x \\ \end{tabular} & \begin{tabular}{l} STUDENT S TIN \\ 12900 \end{tabular} & 3 & & \begin{tabular}{r} Copy B \\ For Student \end{tabular} \\ \hline \multicolumn{2}{|l|}{ STUDENT'S name } & \begin{tabular}{l} 4 Adjustments made for a \\ prior year \end{tabular} & 5 Scholarships or grants & This is important \\ \hline \multicolumn{2}{|l|}{ SHELBY PICKENS } & $ & $7,500.00 & \begin{tabular}{l} tax information \\ and is being \\ furnished to the \end{tabular} \\ \hline \multicolumn{2}{|l|}{\begin{tabular}{l} Street address fincluding apt. no.) \\ 5 PEBBLE LANE \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{l} 6 Adjustments to \\ scholarships or grants \\ for a prior year \end{tabular}} & \multirow{2}{*}{\begin{tabular}{l} 7 Checked if the amount \\ in box 1 includes \\ amounts for an \\ academic period \\ beginning January- \\ March 2023 \end{tabular}} & \begin{tabular}{l} furnished to the \\ IRS. This form \\ must be used to \end{tabular} \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} City or town, state or province, country, and ZIP or foreign postal code \\ YOUR CITY, YOUR STATE, ZIP \end{tabular}} & & & \begin{tabular}{l} complete Form 8863 \\ to clairn education \\ credits. Give it to the \end{tabular} \\ \hline Service Provider/Acct. No. (see instr.) & \begin{tabular}{l} 8 Checked if at least \\ hall-time student \end{tabular} & \begin{tabular}{l} 9 Chocked if a graduate \\ student \end{tabular} & \begin{tabular}{l} 10 Ins. contract reimb./relund \\ $ \end{tabular} & \begin{tabular}{l} tax preparer or use it to \\ prepare the tax return. \end{tabular} \\ \hline \end{tabular} Form W2 This information is being furnished to the Internal Revenue Service. 1. In addition to being a store clerk at Cave Street Market, Claire is a self-employed massage therapist, giving massages to clients from both her home and at clients' homes and hotels. For the current year, she has documents to prove the following income and expenses: ne) Total mileage on her car for 2022=11,214 miles, of which 8,556 were personal miles and the rest were business miles in going from client to client (1,380 business miles in the first half of 2022 and the rest in the second half). She has one vehicle, a 2020 Ford F-150, in service on 10/15/2021. Claire will take the standard mileage rate. Total mileage on her car for 2022=11,214 miles, of which 8,556 were personal miles and the rest were business miles in going from client to client (1,380 business miles in the first half of 2022 and the rest in the second half). She has one vehicle, a 2020 Ford F150, in service on 10/15/2021. Claire will take the standard mileage rate. She would like to take the maximum allowable deduction for her expenses in the current year. 2. Jeff and Claire purchased a rent house on January 2 of the current year for $200,000 ( $140,000 allocated to the structure and $60,000 allocated to the land). The address is 100 Drew Street, Houston, TX 77006. She immediately rented it and has the following income and expenses for the current year: \begin{tabular}{lr} Rental income received ($80012) & $9,600 \\ Mortgage payments (interest =$6,500, principal reduction =$1,300) & 7,800 \\ Real estate taxes & 2,820 \\ Maintenance expense & 996 \\ Homeowner's insurance & 2,750 \\ Repair expense & 1,420 \end{tabular} Jeff and Claire actively participated in the management of the rent house but they do not qualify as real estate professionals. The rental activity is not a qualified trade/business for the QBI deduction. 3. The couple made timely quarterly tax payments for the current year to IRS of $1,000 each quarter ($4,000 total). 4. Claire tells you in the interview that she won $800 playing bingo (no W-2G was required to be issued) but she also has $550 of bingo losses. 5. If the couple is entitled to a refund, they would like to deposit half into their checking account and half into their savings account, both at Adelphi Bank and Trust. The routing number for both accounts is 111000025 . Her checking account number is 113355779 and her savings account number is 224466880 . (11) Baldwin University Meal Plan Baldwin College Student Housing 3700 Baldwin Avenue Your City, Your State, ZIP Received from: Shelby Pickens $5,500.00 Baldwin University 3700 Baldwin Avenue Document Review Simulation - Jeff and Claire Pickens - FALL 2023 Answer the 15 items below on Canvas in the Document Review Simulation Fall 2023 tab under Assignments. See your syllabus for the due date and time. Based on the interview notes and the documents below, answer the following items relative to their 2022 Form 1040. If the amount is negative, put a minus (-) before the number. If the amount is zero, write 0 . The parenthetical reference for each item below is to the 2022 forms and schedules. 1. Wages, salaries, tips, etc. (Form 1040, line 1z) 2. Taxable dividends (Form 1040, line 3b) 3. Taxable pension distribution (Form 1040, line 5b) 4. Taxable social security benefits (Form 1040, line 6b) 5. Business income or deductible loss (Schedule 1, line 3) 6. Rental income or deductible loss (Schedule 1, line 5) 7. Taxable other income (Schedule 1, line 9) 8. Qualified business income deduction (1040, line 13) 9. Credit for other dependents (Form 1040, line 19) 10. Federal income tax withheld (Form 1040, line 25d) 11. 2022 estimated tax payments (Form 1040, line 26) 12. Education credit (Schedule 3, line 3), nonrefundable amount 13. American opportunity credit (Form 1040, line 29) refundable 14. Form required in order to split refund between accounts 15. Tax rate on qualified dividends (from Form 1040, line 16) $ $ $ $ $ $ $ $ $ $ $ $ $ % Forms 1099-R \& SSA 1099 \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ FORM SSA-1099 - SOCIAL SECURITY BENEFIT STATEMENT } \\ \hline \multicolumn{4}{|c|}{022 - PART OF YOUR SOCIAL SECURITY BENEFITS SHOWN IN BOX 5 MAY BE TAXABLE INCOME. } \\ \hline \multicolumn{2}{|r|}{ JEFF PICKENS } & \multicolumn{2}{|c|}{\begin{tabular}{l} Box 2. Beneliciary's Secial Sacurv Number \\ 12700XXXX \end{tabular}} \\ \hline \begin{tabular}{r} Box 3. Eenatits Paid in 2022 \\ $12,000.00 \end{tabular} & \multicolumn{2}{|c|}{ Box 4. Banefits Peppoid to SSA in 2022} & \begin{tabular}{r} Box 5. Net Benefits for 2022 (Box 3 minus Box 4) \\ $12,000,00 \end{tabular} \\ \hline \multirow{3}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} DESCRIPTION OF AMOUNT IN BOX 3 \\ Paid by check or direct deposit: $12,000,00 \end{tabular}}} & \multicolumn{2}{|r|}{ DESCRIPTION OF AMOUNT IN BOX 4} \\ \hline & & \multicolumn{2}{|c|}{ Box 8. Volumary Federal Income Tax Withholding } \\ \hline & & \multicolumn{2}{|c|}{\begin{tabular}{l} Box 7. Address \\ 5 PEBBLE LANE \\ YOUR CITY, YOUR STATE, ZIP \end{tabular}} \\ \hline Urafl as of dians 23 & 2022 - Subiect to & \\ \hline Can SSA-1099-SM (5KR20) & DONOT R & RETURN & THIS FORM TO SSA OR IRS \\ \hline \end{tabular} Forms 1099-DIV \& 1098-T Jeff Pickens (DOB 07/15/1954, SSN 127-15-1515) is married to Claire Pickens (DOB 01/30/1959, SSN 128-16-6666), and they elect to file married filing jointly. Jeff is legally blind; he is retired and received Social Security benefits and a pension. Claire works full-time as a store clerk and is also self-employed as a massage therapist. They have a daughter, Shelby Pickens, (DOB 09/03/2003, SSN 129-11-2222) who is a full-time college student in her second year of study. She is pursuing a degree in sociology and does not have a felony drug conviction. She received a Form 1098-T for 2022. Box 7 was not checked on her Form 1098-T for the previous tax year. Shelby spent the summer at home with her parents but lived in an apartment near campus during the school year. Shelby received a scholarship and the terms require that it be used to pay tuition. Jeff and Claire paid the cost of her tuition and course-related books in 2022 not covered by the scholarship. They paid $120 for a parking sticker, $5,500 for a meal plan, $750 for textbooks purchased at the college bookstore, and $100 for access to an online textbook. They are all US citizens and have valid social security numbers (SSNs) and lived in the US the entire year. The couple paid more than half the cost of keeping up a home and support for Shelby. The couple has provided you with documentation for their income and expenses --- see below. You also have obtained the following information from interviewing her: \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ CORRECTED } \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} FILER'S name, street address, city or town, state or province, country, ZIP of \\ foreign postal code, and telephone number \end{tabular}} & \begin{tabular}{l} 1. Payments roceived for \\ qualified tuition and related \\ expenses \end{tabular} & OMB No. 1545-1574 & \\ \hline \multicolumn{2}{|l|}{ BALDWIN UNIVERSITY } & 9,500.00 & & Tuition \\ \hline \multirow{3}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} 3700 BALDWIN AVENUE \\ YOUR CITY, YOUR STATE, ZIP \end{tabular}}} & 2 & & Statement \\ \hline & & & & \\ \hline & & & Form 1098-T & \\ \hline \begin{tabular}{l} FlLER'S employer identification no. \\ 899.7x \\ \end{tabular} & \begin{tabular}{l} STUDENT S TIN \\ 12900 \end{tabular} & 3 & & \begin{tabular}{r} Copy B \\ For Student \end{tabular} \\ \hline \multicolumn{2}{|l|}{ STUDENT'S name } & \begin{tabular}{l} 4 Adjustments made for a \\ prior year \end{tabular} & 5 Scholarships or grants & This is important \\ \hline \multicolumn{2}{|l|}{ SHELBY PICKENS } & $ & $7,500.00 & \begin{tabular}{l} tax information \\ and is being \\ furnished to the \end{tabular} \\ \hline \multicolumn{2}{|l|}{\begin{tabular}{l} Street address fincluding apt. no.) \\ 5 PEBBLE LANE \end{tabular}} & \multirow[t]{2}{*}{\begin{tabular}{l} 6 Adjustments to \\ scholarships or grants \\ for a prior year \end{tabular}} & \multirow{2}{*}{\begin{tabular}{l} 7 Checked if the amount \\ in box 1 includes \\ amounts for an \\ academic period \\ beginning January- \\ March 2023 \end{tabular}} & \begin{tabular}{l} furnished to the \\ IRS. This form \\ must be used to \end{tabular} \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} City or town, state or province, country, and ZIP or foreign postal code \\ YOUR CITY, YOUR STATE, ZIP \end{tabular}} & & & \begin{tabular}{l} complete Form 8863 \\ to clairn education \\ credits. Give it to the \end{tabular} \\ \hline Service Provider/Acct. No. (see instr.) & \begin{tabular}{l} 8 Checked if at least \\ hall-time student \end{tabular} & \begin{tabular}{l} 9 Chocked if a graduate \\ student \end{tabular} & \begin{tabular}{l} 10 Ins. contract reimb./relund \\ $ \end{tabular} & \begin{tabular}{l} tax preparer or use it to \\ prepare the tax return. \end{tabular} \\ \hline \end{tabular} Form W2 This information is being furnished to the Internal Revenue Service. 1. In addition to being a store clerk at Cave Street Market, Claire is a self-employed massage therapist, giving massages to clients from both her home and at clients' homes and hotels. For the current year, she has documents to prove the following income and expenses: ne) Total mileage on her car for 2022=11,214 miles, of which 8,556 were personal miles and the rest were business miles in going from client to client (1,380 business miles in the first half of 2022 and the rest in the second half). She has one vehicle, a 2020 Ford F-150, in service on 10/15/2021. Claire will take the standard mileage rate. Total mileage on her car for 2022=11,214 miles, of which 8,556 were personal miles and the rest were business miles in going from client to client (1,380 business miles in the first half of 2022 and the rest in the second half). She has one vehicle, a 2020 Ford F150, in service on 10/15/2021. Claire will take the standard mileage rate. She would like to take the maximum allowable deduction for her expenses in the current year. 2. Jeff and Claire purchased a rent house on January 2 of the current year for $200,000 ( $140,000 allocated to the structure and $60,000 allocated to the land). The address is 100 Drew Street, Houston, TX 77006. She immediately rented it and has the following income and expenses for the current year: \begin{tabular}{lr} Rental income received ($80012) & $9,600 \\ Mortgage payments (interest =$6,500, principal reduction =$1,300) & 7,800 \\ Real estate taxes & 2,820 \\ Maintenance expense & 996 \\ Homeowner's insurance & 2,750 \\ Repair expense & 1,420 \end{tabular} Jeff and Claire actively participated in the management of the rent house but they do not qualify as real estate professionals. The rental activity is not a qualified trade/business for the QBI deduction. 3. The couple made timely quarterly tax payments for the current year to IRS of $1,000 each quarter ($4,000 total). 4. Claire tells you in the interview that she won $800 playing bingo (no W-2G was required to be issued) but she also has $550 of bingo losses. 5. If the couple is entitled to a refund, they would like to deposit half into their checking account and half into their savings account, both at Adelphi Bank and Trust. The routing number for both accounts is 111000025 . Her checking account number is 113355779 and her savings account number is 224466880 . (11) Baldwin University Meal Plan Baldwin College Student Housing 3700 Baldwin Avenue Your City, Your State, ZIP Received from: Shelby Pickens $5,500.00 Baldwin University 3700 Baldwin Avenue Document Review Simulation - Jeff and Claire Pickens - FALL 2023 Answer the 15 items below on Canvas in the Document Review Simulation Fall 2023 tab under Assignments. See your syllabus for the due date and time. Based on the interview notes and the documents below, answer the following items relative to their 2022 Form 1040. If the amount is negative, put a minus (-) before the number. If the amount is zero, write 0 . The parenthetical reference for each item below is to the 2022 forms and schedules. 1. Wages, salaries, tips, etc. (Form 1040, line 1z) 2. Taxable dividends (Form 1040, line 3b) 3. Taxable pension distribution (Form 1040, line 5b) 4. Taxable social security benefits (Form 1040, line 6b) 5. Business income or deductible loss (Schedule 1, line 3) 6. Rental income or deductible loss (Schedule 1, line 5) 7. Taxable other income (Schedule 1, line 9) 8. Qualified business income deduction (1040, line 13) 9. Credit for other dependents (Form 1040, line 19) 10. Federal income tax withheld (Form 1040, line 25d) 11. 2022 estimated tax payments (Form 1040, line 26) 12. Education credit (Schedule 3, line 3), nonrefundable amount 13. American opportunity credit (Form 1040, line 29) refundable 14. Form required in order to split refund between accounts 15. Tax rate on qualified dividends (from Form 1040, line 16) $ $ $ $ $ $ $ $ $ $ $ $ $ %