Harris and Carly Franklin are married and choose to file Married Filing Jointly on their 2020 tax return. Harris and Carly have one son Billy and a newborn baby Cristina born in 2020. Carly was a kindergarten teacher at a private school through May and decided not to return after the birth of her child. Carly worked a total of 800 hours in 2020 (January - May). She spent $375 on unre- imbursed classroom expenses while she was employed. In order to work, the Franklins paid child care expenses of $1,500 through May for Billy. They also paid $750 in child care expenses for Cristina while Carly volunteered in Billy's class in November. The Franklins paid $3,960 in student loan interest in 2020. In August of 2020, Harris enrolled in college to pursue a bachelor's degree in Accounting. He received a scholarship and the terms require that it be used to pay tuition. He provided Form 1098-T and an account statement from the college that included additional expenses. Harris had no previous post-secondary education. Gordon College is a qualified educational institution. Harris does not have a felony drug conviction. The Franklins received a $2,900 Economic Impact Payment (EIP) in 2020. Harris purchased insurance for the entire family through the Marketplace and received Form 1095-A. They are all U.S. citizens with valid Social Security numbers. b Employer identification number (EIN) 34-600XXXX Employee's social security number 604-00-XXXX c Employer's name, address, and ZIP code GILMORE ACCOUNTING CORPORATION 2250 DELTA AVENUE YOUR CITY, STATE ZIP Safe, accurate, OMB No. 1545-0008 FAST! Use Visit the IRS website at RS file www.irs.gov/efile 1 Wages, tips, other compensation 41,502.00 3 Social security wages 42,502.00 5 Medicare wages and tips 42,502.00 7 Social security tips 2 Federal income tax withheld 1,200.00 4 Social security tax withheld 2,635.00 6 Medicare tax withheld 616.00 8 Allocated tips 10 Dependent care benefits d Control number e Employee's first name and initial Last name Suff. 11 Nonqualified plans HARRIS FRANKLIN 13 Statutory employee Retirement plan Third-party sick pay 12b 12a See instructions for box 12 D 1,000.00 450 SARASOTA TERRACE YOUR CITY, STATE ZIP 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number YS 34-600XXXX 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 41,502.00 1,604.00 Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 2020 Department of the Treasury-Internal Revenue Service b Employer identification number (EIN) 34-700XXXX Employee's social security number 605-00-XXXX c Employer's name, address, and ZIP code DEATON ELEMENTARY SCHOOL 2565 DEATON STREET YOUR CITY, STATE ZIP d Control number Safe, accurate, IRS e-file OMB No. 1545-0008 FAST! Use 1 Wages, tips, other compensation 9,643.00 3 Social security wages 9,643.00 5 Medicare wages and tips 9,643.00 7 Social security tips 9 Visit the IRS website at www.irs.gov/efile 2 Federal income tax withheld 700.00 4 Social security tax withheld 597.87 6 Medicare tax withheld 139.82 8 Allocated tips 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 CARLY FRANKLIN 13 Statutory employee Retirement Third-party sick pay 12b 450 SARASOTA TERRACE YOUR CITY, STATE ZIP 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number YS 34-700XXXX 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 9,643.00 120.00 Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 2020 Department of the Treasury-Internal Revenue Service CORRECTED FILER'S name, street address, city or town, state or province, country, ZIP or 1 Payments received for foreign postal code, and telephone number GORDON COLLEGE 10 COLLEGE AVENUE OMB No. 1545-1574 qualified tuition and related expenses $ 3,750.00 2 2020 Form 1098-T YOUR CITY, STATE ZIP FILER'S employer identification no. 37-700XXXX STUDENT'S TIN 604-00-XXXX 3 STUDENT'S name 4 Adjustments made for a prior year 5 Scholarships or grants HARRIS FRANKLIN Street address (including apt. no.) 450 SARASOTA TERRACE City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, STATE ZIP $ 6 Adjustments to scholarships or grants for a prior year $ 1,025.00 7 Checked if the amount in box 1 includes amounts for an academic period beginning January- March 2021 $ Service Provider/Acct. No. (see instr.) 8 Check if at least half-time student 9 Checked if a graduate 10 Ins. contract reimb./refund student $ Form 1098-T (keep for your records) www.irs.gov/Form1098T Tuition Statement Copy B For Student This is important tax information and is being furnished to the IRS. This form must be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return. Department of the Treasury - Internal Revenue Service CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number FINANCIAL AID PARTNERS 605 LINCOLN DR YOUR CITY, STATE ZIP RECIPIENT'S TIN 37-700XXXX BORROWER'S name CARLY FRANKLIN Street address (including apt. no.) 450 SARASOTA TERRACE OMB No. 1545-1576 2020 Form 1098-E BORROWER'S TIN 605-00-XXXX 1 Student loan interest received by lender $ 3,960.00 City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, STATE ZIP Account number (see instructions) Form 1098-E (keep for your records) 2 If checked, box 1 does not include loan origination fees and/or capitalized interest for loans made before September 1, 2004. www.irs.gov/Form1098E Student Loan Interest Statement Copy B For Borrower This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for student loan interest. Department of the Treasury - Internal Revenue Service Form 1095-A Department of the Treasury Internal Revenue Service Health Insurance Marketplace Statement Do not attach to your tax return. Keep for your records. Go to www.irs.gov/Form 1095A for instructions and the latest information. Part I Recipient Information 1 Marketplace identifier 12-3456789 4 Recipient's name 2 Marketplace-assigned policy number 987654 RANKLIN RAFT HARRIS FRANKLIN 7 Recipient's spouse's CARLY FRANKLIN 10 Policy start date 01/01/2020 13 City or town YOUR CITY Ju Part II Covered Individuals A. Covered individual name 11 Policy termination date 12/31/2020 14 State or province YOUR STATE 3 Covered individual SSN 3 Policy issuer's name INSURER 5 Recipient's SSN 604-00-XXXX & Recipient's spouse's SSN 605-00-XXXX VOID CORRECTED CMB No. 1545-2232 2020 Recipient's date of birth 03/30/1980 9 Recipient's spouse's date of birth 05/27/1981 12 Street address (including apartment no 450 SARASOTA TERRACE 15 Country and ZIP or foreign postal code YOUR ZIP C. Covered individual D. Coverage start date. Coverage termination date date of birth 16 HARRIS FRANKLIN 604-00-XXXX 03/30/1980 01/01/2020 12/31/2020 17 CARLY FRANKLIN 605-00-XXXX 05/27/1981 01/01/2020 12/31/2020 18 BILLY FRANKLIN 606-00-XXXX 04/01/2014 01/01/2020 12/31/2020 19 CRISTINA FRANKLIN 607-00-XXXX 03/02/2020 03/01/2020 12/31/2020 20 Part III Coverage Information Month A. Monthly enrollment premiums B. Monthly second lowest cost silver plan (SLCSP) premium C. Monthly advance payment of premium tax credit 809.00 1,008.92 620.00 21 January 809.00 1,008.92 620.00 22 February 23 March 809.00 1,008.92 620.00 809.00 1,008.92 620.00 24 Apri 809.00 1,008.92 620.00 25 May 809.00 1,008.92 620.00 26 June 809.00 1,008.92 620.00 27 July 809.00 1,008.92 620.00 28 August 809.00 1,008.92 620.00 29 September 809.00 1,008.92 620.00 October 809.00 1,008.92 620.00 31 November 809.00 1,008.92 620.00 32 December 9,708.00 12,107.04 7,440.00 33 Annual Totals For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 607030 Form 1095-A (2020) HARRIS FRANKLIN Student ID 604-00-XXXX Gordon College Statement of Account December 31, 2020 Date Transaction Amount Billed Amount Paid 08/30/2020 Tuition-Fall Semester 2020 +$3,750.00 08/30/2020 Scholarship -$1,025.00 09/03/2020 Parking pass +$ 125.00 09/04/2020 Campus Bookstore charge to student account for course-related books +$ 450.00 09/05/2020 Payment - check #1234 -$3,300.00 12/31/2020 Account Balance.. $0.00 Busy Bee Day Care 303 Twiggs Trail Your City, Your State Your Zip Ph: (555) 555-1234 December 31, 2020 Received from Harris and Carly Franklin: $1,500 for after-school care for Billy Franklin $750 for Cristina Franklin Total amount received for child care in 2020 $2,250.00 Ellen River EIN: 35-900XXXX Harris and Carly Franklin 450 Sarasota Terrace Your City, State 00000 PAY TO THE ORDER OF VOID Adelphi Bank and Trust Anytown, State 00000 For 111000025: 123456789 1234 DOLLARS 1234 13. What is the amount of Carly's student loan interest deduction on Form 1040, Schedule 1? $ 14. How do educator expenses affect Carly's tax return? a. Carly can claim these expenses as a miscellaneous itemized deduction on her Schedule A. b. These expenses cannot be claimed on her 2020 tax return because she does not meet the requirements to claim the educator expenses. C. $250 is deducted as an adjustment to income on Form 1040, Schedule 1. d. Carly is entitled to deduct the full $375 as an adjustment to income on Form 1040, Schedule 1. 15. What is the amount of qualified child care expenses used in the calculation of the Franklin's Form 2441, Child and Dependent Care Expenses? a. $0 b. $750 c. $1,500 d. $2,250 16. The refundable portion of the American opportunity credit located on Form 8863, Education Credit is $ 17. The amount of the Franklin's net premium tax credit on Form 8962, Premium Tax Credit is $ 18. The Franklins can claim a recovery rebate credit of $ 2020 tax return. for Cristina on their Note: Congress may have enacted additional legislation that will affect taxpayers after this publication went to print. Please answer questions based on the information provided in Publication 4491, VITA/TCE Training Guide and Publication 4012, VITA/ TCE Resource Guide. 19. Do the Franklins qualify for the earned income credit? a. Yes, they meet all the qualifications to receive the credit. b. No, their income is too high