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I need help completing all the tax forms needed for this situation in the attached file. Accounting 4141 - Income Taxation of Individuals Tax Return

I need help completing all the tax forms needed for this situation in the attached file.

image text in transcribed Accounting 4141 - Income Taxation of Individuals Tax Return Project - Due April 27, 2016 Instructions: Please complete the 2015 federal income tax return for Magdalena Schmitz. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Magdalena Schmitz has undergone some major changes in her life recently. In 2013, at the age of 46, her husband, Roger, passed away. Magdalena has not remarried as of the end of 2015. Magdalena currently lives in Bedford, Pennsylvania. She was living in Pittsburgh when her husband passed away but she moved back to her childhood home so she could get help from her family raising her children. Magdalena was employed in Pittsburgh early in the year but left that job and relocated 100 miles away to pursue a new life and start her new job. Magdalena has three children (ages as of the end of the year): Alyssa (23), Tyler (16), and Connor (11). Magdalena would like to determine her federal income tax under the filing status that is most advantageous for her. Magdalena reported the following information: Magdalena's social security number is 294-83-2845 Alyssa's social security number is 824-84-8456 Tyler's social security number is 824-34-9584 Connor's social security number is 824-56-2984 Magdalena's mailing address is 623 S. Liberty Road Bedford, Pennsylvania 15522 Alyssa is unmarried and a full-time graduate student at Pennsylvania State University (PSU) (EIN 33-9876543). PSU's address is 1250 Happy Valley, State College, PA 16801. She received her bachelor's degree the year her father passed away. This year represents her fifth year of full-time higher education schooling. Alyssa works part-time in State College to help with some of her living expenses. Alyssa earned $2,300 in gross income during the year and had her income tax return prepared on campus by Volunteer Income Tax Assistance (VITA) volunteers. Magdalena provided support for Alyssa including paying for rent, books, tuition, food, clothes, medicine, and other support items. In total, Magdalena provided $12,700 of support for the year. PSU provided Alyssa with a Form 1098-T at year end. Alyssa's higher education expenses for her university studies were as follows: Tuition $7,500 Books $1,000 In order to permit Magdalena to maintain a full-time job, she sends Connor to a day care program after school five days a week. During the year, Magdalena paid the day care operator $6,250 for Connor's care. The day care details are as follows: Horizon Day Care 452 S. Patriot Road Bedford, PA 15522 EIN-43-6598324 Magdalena incurred the following moving-related expenses during the year: Household items Meals in transit House hunting trip $3,500 250 1,150 In addition she drove her car the 100 miles to Bedford as part of the move. Her previous workplace was located 10 miles from the previous home she was renting and her new job is exactly 100 miles away from her prior residence. Magdalena's W-2s for the year reported the following: Employer Juniata Development Corporation Pittsburgh Real Estate Gross Wages $48,575 Federal Income Tax Withholding $1,100 State Income Tax Withholding $700 $2,550 $300 $125 Magdalena's employers withheld all applicable and appropriate payroll taxes. The entire Schmitz family was covered by minimum essential health insurance during each month in 2015. The insurance was provided by Magdalena's employers. On January 1, 2014 (prior year), Magdalena started a photography business in which she takes bridal and wedding photographs. She does not do any of the professional printing. However, she provides all of the original negatives to her clients on a password-protected web site as part of her service. This unique service along with her skill and reputation has allowed her to earn additional money on the weekends, primarily in the summer, to help support her daughter in college. Magdalena rents all of the camera equipment from a friend and does not currently own any equipment herself. The photography business uses the cash method of accounting. The business did not have any obligation to file a Form 1099 to any payee during the year. Magdalena reported the following revenue and expenses for her business for the year: Gross Revenue Photographic supplies Camera rental Web site hosting fee $6,300 $ 330 $1,050 $ 200 Magdalena also received the following during the year: Life Insurance Payment-Mutual Life (Mother's passing) $150,000 Cash gift from her father $ 5,000 Interest income-First Bank of Bedford $ 310 Interest income-General Electric Bond $ 3,200 Interest income-Bedford School District Municipal Bond $ 2,500 Interest income-Johnstown Rural Improvement District Bond $ 1,300 PA state income tax refund* $ 325 *Refund was from state tax she paid last year. Magdalena deducted all of her state taxes as itemized deductions, and received full tax benefit for the deductions, on her prior year federal tax return. Magdalena did not own, control or manage any foreign bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year. Magdalena paid or incurred the following expenses during the year: Dentist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) Real property taxes on residence Vehicle registration fee Mortgage interest on principal residence (Form 1098 received) Contribution to the American Lung Association Contribution to the Habitat for Humanity Contribution to Methodist Church of PA Contribution to Penn State University $1,600 $ 375 $ 255 $ 950 $ 175 $6,850 $ 620 $1,200 $3,000 $ 400 Magdalena wants to contribute to the Presidential Election Campaign. She would like to receive a refund (if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check

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