Instructions:

Please complete the 2014 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 L. Schmitz (DOB 07/08/1966) has undergone some major changes in her life recently. In 2012, at the age of 46, her husband, Roger, passed away. Magdalena has not remarried as of the end of 2014. 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 to pursue a new life and start her new job. Magdalena has three children: Alyssa Anne (04/17/1992), Tyler James (01/06/1998), and Connor Ryan (11/12/2003). Magdalena would like to determine her federal income tax under the filing status that is most advantageous for her.

Magdalena reported the following information:

Magdalenas social security number is 294-83-2845

Alyssas social security number is 824-84-8456

Tylers social security number is 824-34-9584

Connors social security number is 824-56-2984

Magdalenas 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). PSUs address is 1250 Happy Valley, State College, PA 16801. She received her bachelors 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. It is attached.

Alyssas higher education expenses for her university studies were as follows:

Tuition $6,500

Books $2,000

Magdalena incurred the following moving-related expenses during the year:

Household items $4,200

Meals in transit 150

House hunting trip 1,350

In addition she drove her car 107 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.

Magdalenas W-2s for the year are attached. She worked for two employers. Magdalenas employers withheld all applicable and appropriate payroll taxes. The entire Schmitz family was covered by minimum essential health insurance during each month in 2014. The insurance was provided by Magdalenas employers.

Magdalena also received the following during the year:

Life Insurance Payment-Mutual Life (Mothers passing) $200,000

Cash gift from her father $ 10,000

Interest income-First Bank of Bedford $ 205

Interest income-General Electric Bond $ 2,200

Interest income-Bedford School District Municipal Bond $ 1,500

Interest income-Johnstown Rural Improvement District Bond $ 1,100

PA state income tax refund* $ 425

*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) $2,200

Doctors (unreimbursed by insurance) $ 875

Prescriptions (unreimbursed by insurance) $ 655

Real property taxes on residence $ 850

Vehicle registration fee based upon age of vehicle $ 375

Mortgage interest on principal residence (Form 1098 received) $5,950

Contribution to the American Lung Association $ 600

Contribution to the Habitat for Humanity $ 700

Contribution to Methodist Church of PA $4,000

Contribution to Penn State University $ 600

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.