I need an answer for part 2 please fill all the forms required

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TAX RETURN PROBLEM Part 1 Requirements Prepare an income tax return (with appropriate schedules) for the Clients for 2015, using the following guidelines and information: The Taxpayers choose to file a joint income tax return The Taxpayers do not wish to contribute to the Presidential Elections Campaign Fund. The Taxpayers do not own any foreign bank accounts or other investments. The Taxpayers prefer to receive any refund of overpaid taxes. They prefer the check to be mailed. For the past several years, the Taxpayers have itemized their deductions from AGI instead of using the standard deduction. The taxpayers have the necessary substantiation (e.g., records, receipts) to support all transactions reported in their tax return. Make necessary assumptions for information not given in the problem but needed to complete the return. Bill Clients (age 54) and Mary Clients (age 56) are married and live at 426 East Oak, Carbondale, IL 62901. Bill has been promoted to Vice President for Com-Pac a local flexible packaging manufacturer and Mary is a self-employed attorney. They are calendar-year, cashbasis taxpayers. 1 The Taxpayers maintain a household that includes two children. Sandy graduated from high school on June 7, 2014, and is currently attending SIU. Included in source documents is Sandy's 1098-T listing her qualified education expenses. In 2014, the Clients took the American Opportunity Credit and would like to take it again in 2015. Sandy is an accomplished babysitter and during 2015 earned $10,200. Sandy places most of her earnings in a savings account and kept only a small amount to spend on herself. Sandy's primary home for the whole year was the family home. 2 Relevant Social Security numbers are as follows: Name Bill S. Clients Mary N. Clients Sandy J. Clients Andrew W. Clients 3 Birthday 7/22/1961 3/13/1959 8/2/1996 6/16/2005 Social Security Number 111-11-1111 123-45-6787 123-45-6788 123-45-6790 Bill's W-2 is attached. Bill participates in his employer's group health insurance plan to which he contributed $3,600 in 2015 for medical coverage. These contributions were made with after-tax dollars. The health plan covers Bill, Mary, and their two children. The company provides an office for Bill's use that is located at 110 North Round Street, Suite 217, Carbondale, IL. 4 Interest, Dividend, Stock and Bond Transactions are reflected on the attached 1099s. The form 1099-B doesn't have an input screen like the W2 or 1099-Int. However, it is reported on Schedule D. 5 The 1099-G shows the refund of 2014 states income taxes paid. You will need to enter the following information. In 2014 they had a total of $35,000 itemized deductions, including $8,400 in state and local taxes paid. . Requirements - See part 1 for information. The following builds on what was listed in part 1. Prepare an income tax return (with appropriate schedules) for the Clients for 2015, using the following guidelines and information: 1. Bill participates in his employer's group health insurance plan to which he contributed $3,600 in 2015 for medical coverage. These contributions were made with after-tax dollars. The health plan covers Bill, Mary, and their two children. The company provides an office for Bill's use that is located at 110 North Round Street, Suite 217, Carbondale, IL. 2. Besides the business use of his car (see item 3 below), Bill's out-of-pocket employment related expenses for 2015 are as follows: Airfare Lodging Meals Entertainment Car rentals, limos, taxis Subscriptions to trade journals Dues to trade association Business gifts $3,650 2,600 3,400 950 600 120 80 550 ComPac reimbursed Bill for all the employment related expenses pursuant to its accountable plan. 3. On March 5, 2013, Bill purchased a new Ford Focus for use in his job. The Car cost $34,000 (including sales tax), with no trade-in involved. The car was driven 12,000 miles in 2013 and 18,000 miles in 2014 and 12,000 miles in 2015 with usage as follows: 15% for commuting to the office and 85% for business trips. The mileage for 2015 was evenly distributed throughout the year. Bill uses the actual operating cost method, and for depreciation purposes uses 200% declining-balance with a half-year convention. In addition, Bill did not claim any sec. 179 expensing or additional first-year depreciation when he bought the car. Bill's expenses related to operation the Ford Focus for 2015 are as follows: Gasoline $2,500 Oil change and lubrication Auto insurance Repairs Auto club dues License and registration Interest on car loan Parking and tolls 450 1,500 600 100 160 500 300 4. Mary is a licensed attorney who works part time on a consulting basis. Mary collected $ 75,000 in consulting fees during 2015. Mary does her work at the client's premises or in her office at home (see item 6 below). The federal business code is 541100. Her business expenses for 2015 are as follows: Supplies Library materials Expert fees Professional license fee Subscriptions to professional journals Dues to professional organizations Attorney Subcontractor fees paid (1099s issued to others) $4,000 5,000 8,500 800 350 500 10,000 In addition, Mary drove the family Acura (purchase on June 7, 2013) 2,050 miles on her job assignments. She uses the standard mileage method to deduct business costs related to the Acura. During 2015, Mary drove the car a total of 8,600 miles. The car was driven 12,000 miles in 2013 and 8,000 miles in 2014: 75% for personal use and 25% for business trips. She paid $100 in parking fees and tolls. HINT: Vehicle expenses (both actual and standard mileage) needs to be entered as a fixed asset and then on the vehicle tab within the specific car fixed asset. Make sure to specify which form the vehicle expenses should report to (either schedule C or 2106). Applies to both items 3 and 4. 5. Mary would like to a contribution to a SEP retirement account in an amount equal to the maximum amount allowed her for a deduction. 6. When the Taxpayers purchased their home on February 2, 2014, they set aside 240 square Feet (out of a total of 2,400 square feet) of living space for Mary's office. As of January 1, 2015, the home has a cost basis of $240,000 (of which $40,000 is attributable to the land) - the fair market value of the property is in excess of this amount. Relevant information concerning the residence for all of 2015 follows: Homeowner's insurance Repairs and maintenance Utilities Home Phone ` $2,200 2,000 6,200 800 Hint: Entering the home office is probably the most complicated thing. First create the schedule C. From there go to the home office worksheet to enter indirect and direct expenses. The go to fixed assets and create the home office asset. Remember to link it to the appropriate form. 7. Besides the items previously noted, the Taxpayers had the following items for 2015: Loan repayment received form a friend, Sarah Smith Loan was originally for $5,000 but Sarah was forgiven remainder. 3,500 Cash gifts from Mary's parents 13,000 8. In addition to the items already noted, the Taxpayers had the following expenditures for 2015: Life insurance premiums paid 1,800 Medical and dental expenses not covered by insurance 4,200 Taxes: Real estate Taxes on home Real estate taxes on 40 acres in Missouri State and local sales taxes Interest on home mortgage Contributions: Church (all cash) Goodwill (Carbondale branch) Illinois governor's election campaign 6,700 3,000 2.700 (see 1098) 2,000 600 100 2,900 Non-cash items donated to Goodwill were originally purchased at various dates. The $600 is the fair-value of the items today. They were originally purchased for $3,000. For the type of property, just put \"other\" in the appropriate field. This description of items is \"Clothing and Household Items.\" Also, this relates to the 50% charity limit and method used to determin is \"Fair Market Value.\" The address of the Goodwill location is 1145 East Main Street, Carbondale, IL, 62901. 9. Included in source documents is Sandy's 1098-T listing her qualified education expenses. In 2014, the Clients took the American Opportunity Credit and would like to take it again in 2015. When adding education expenses choose to enter things on the 1040 EdExp tab. Also, the education expenses won't calculate until you hit the \"optimize button\" located on the last page. There will be an error message in the \"Check\" diagnostic tool to remind you to optimize, but only if you enter the expenses in first. 10. The Clients' have made total quarterly federal income tax payments of $1,000 and state income estimated payments of $300 each quarter. The payments were made on the due dates and the fourth quarter payment was paid one month early on 12/15/15. HINT: federal payments can be accessed on the second page of the 1040. State payments can be entered through Schedule A. You have to put in payment dates for all payments. Payments are due quarterly (March, June, Sept, Dec in this case) on the 15 th day of the month. 11. Mary also provides you with a K-1 form for a partnership in which she invested last year. The partnership owns rental real estate (single family homes) but Mary does not participate in the operations. ATX http://www.journalofaccountancy.com/issues/2015/sep/2015-tax-softwaresurvey.html Install if you want: https://www.cchsfs.com/download-atx/