Need help in filling Form 1040 only. No Schedules are required.

Ensure Lines 37 and 75 are $55,980 and $1193.

Tax Return Project Grading and Check Figures ACCT 3072/7072 Fall 2017 Form Points Memo to Client 10 1040 30 Check Figure Line 37: 55,980 Line 75: 1,193 Schedule A 10 Schedule B 5 Schedule C-EZ 10 Schedule SE 10 2441 5 8812 5 8863 10 3903 5 Line 29: 13,620 Line 3: 4,820 Fall 2017 ACCT 3072/7072 Tax Return Project ACCT 3072/7072 Fall 2017 The following is a comprehensive tax return problem for the 2016 tax year (2017 tax forms are not yet available). The assignment is to manually prepare Magdalena Schmitz's federal income tax return for this year. In order to benefit fully from a return problem, it is necessary to become acquainted with the various forms and schedules. You must complete the project without the aid of tax return preparation software (e.g., TurboTax). You may obtain tax return forms and instructions from the IRS website at www.irs.gov. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. In the normal course of preparing a tax return, questions arise that may require additional information. The client believes that her materials contain sufficient information to complete the return. If the problem appears ambiguous or if it appears necessary to make assumptions regarding the facts, state each assumption explicitly in a separate cover letter to the client along with the circumstances that necessitated each assumption. Care should be taken to compute the tax correctly and not let the client's misconceptions of the tax law cloud professional judgment. The return is due at the beginning of class on Thursday, November 30, 2017. I will not accept late assignments for any reason. I will base your grade upon effort and achievement in the interpretation of the facts, application of the law, and presentation of the solution. You may not discuss this project or seek consultation related to this project with anyone. Before handing in the project, please check the following: 1. Include all applicable federal income tax forms and schedules for the solution to the problem. 2. Include calculations on separate schedules for partial credit; 3. Include a cover sheet identifying yourself. The cover sheet must include the following statement: \"I have neither given nor received unauthorized aid on this academic work,\" accompanied by your signature; and 4. Include a memo addressed to the client identifying any assumptions, and explaining any decisions necessary to complete the return (please do not turn in payment vouchers, etc.). Staple the return together on the upper left corner and please do not use folders and/or envelopes. The 2016 personal exemption amount is $4,050. The 2016 married filing jointly standard deduction amount is $12,600. Please ignore tax credits when computing the solution. In addition, you do not need to prepare any state tax returns. Fall 2017 ACCT 3072/7072 The Problem: Magdalena Schmitz has undergone some major changes in her life recently. In 2014, at the age of 46, her husband, Roger, passed away. Magdalena has not remarried as of the end of 2016. 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 339876543). 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 $6,500 Books $2,000 Fall 2017 ACCT 3072/7072 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 $4,250 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: Transport of household items Meals in transit House hunting trip $3,200 150 1,350 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 $48,435 Federal Income Tax Withholding $900 State Income Tax Withholding $700 $2,450 $200 $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 2016. The insurance was provided by Magdalena's employers. On January 1, 2015 (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 digital files 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 $6,500 $ 430 $1,050 $ 200 Fall 2017 ACCT 3072/7072 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 based upon age of vehicle 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 $1,500 $ 475 $ 255 $ 950 $ 175 $6,845 $ 600 $1,000 $3,000 $ 400 Magdalena wants to contribute to the Presidential Election Campaign Fund. 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