IRS Basic VITA Exam

Basic Scenario $7$: Owen and Kimberly Walker

Directions

Using the tax software, complete the tax return, including Form $1040$ and all appropriate forms, schedules, or

worksheets. Answer the questions following the scenario.

When entering Social Security numbers $($SSNs$)$ or Employer Identification Numbers $($EINs$),$ replace the

Xs as directed, or with any four digits of your choice.

Interview Notes

$$ Owen, age $69$ and Kimberly, age $64$ elect to file Married Filing Jointly. Neither taxpayer is blind.

$$ Owen is retired. He received Social Security benefits and a pension.

$$ Owen and Kimberly's daughter Shelby, age $20,$ is a full$-$time college student in her third year of study. She

is pursuing a degree in nursing and does not have a felony drug conviction. She received a Form $1098-$T

for $2023.$ Box $7$ was not checked on her Form $1098-$T for the previous tax year.

$$ Shelby spent the summer at home with her parents but lived in an apartment near campus during the

school year.

$$ Shelby received a scholarship that paid the full tuition. Owen and Kimberly paid the cost of course$-$related

books in $2023$ not covered by scholarship. They paid $$120$ for a parking sticker, $$5,500$ for a meal plan,

$$850$ for textbooks purchased at the college bookstore, and $$200$ for access to an online textbook.

$$ Owen and Kimberly paid more than half the cost of maintaining a home and support for Shelby.

$$ Owen and Kimberly do not have enough deductions to itemize on their federal tax return.

$$ Owen, Kimberly, and Shelby are U$.$S$.$ citizens and have valid Social Security numbers. They all lived in the

United States for the entire year.

$$ If Owen and Kimberly receive a refund, they would like to deposit it into their checking account. Documents

from Baldwin Bank show that the routing number is $111000025.$ Their checking account number is

$11337890.14.$ Owen and Kimberly's standard deduction amount is $$29,200.$

a$.$ True

b$.$ False