Interview Notes Clare is 21 years old and a full-time college junior majoring in nursing. She resides in the campus dorm when school is in session, but lives with her parents during the summer. Clare spent $1,000 on books. Clare works at the Campus Pharmacy on weekends, but it doesnt cover all of her expenses. Clare received a Form W-2 from the Campus Pharmacy as shown in the test scenario. Clares parents are providing the majority of her support. Clare has not been convicted of any felony. She also received Form 1098-T as shown on page 122. The Box 5 amount was an unrestricted scholarship. Clare and her parents came to the site to have their returns prepared. They want to maximize the tax benefits for the family. Scenario 2: Retest Questions 4. If her parents optimize use of the American opportunity credit, Clare will include $3,000 of her scholarship as taxable income. a. True b. False 5. Clares scholarship income is considered earned income for the purpose of determining whether she must file a tax return. a. True b. False 158 Qualified Experienced Volunteer Retest Questions Scenario 3: Genevieve Chabot Directions This scenario does not require you to prepare a tax return. Refer to the interview notes here and the accompanying Form 1099-R on page 124 for the information needed to answer the questions that follow. Interview Notes Under a joint and survivor annuity, Genevieve is receiving widows benefits from her deceased husbands pension. Genevieves date of birth is 5/31/1965. Joe, Genevieves husband, retired at age 60 on January 1, 2010 and began receiving his pension benefits immediately. He died in 2015. Genevieve received a Form 1099-R, as shown on page 124. Genevieve didnt bring last years tax return and claims the full amount of the retirement distribution was taxed in previous years. Genevieve is a U.S. citizen with a valid Social Security number. Scenario 3: Retest Questions 6. What age is used to compute the taxable amount of the pension using the simplified method? a. 45 b. 55 c. 60 d. 104 7. Using the Simplified Method, you determine the taxable amount of the distribution is $13,054. How much should be entered as the amount previously recovered in the simplified method worksheet? $______