Please answer questions 5-8

Chapter 10: Learning Activity Scenario 1 Wesley and Anne Wesley has been divorced from Anne for six months. They have not lived together for two years. Prior to their final divorce decree, they filed joint returns. During the time they were separated Anne won $25,000 from the lottery. Wesley was unaware that Anne had lottery winnings, which she failed to report. Wesley and Anne have received notification from the Intermal Revenue Service that their return has been changed to reflect an increase in income and tax liability due to the lottery winnings. They have also been assessed with interest and penalties. Are both Wesley and Anne liable for any tax, interest, or penalty due? Should Wesley file a request for innocent spouse relef because he had no knowledge of the lottery winnings? Scenario 2 Daniel and Penny Strickland Complete a tax return for the Stricklands. Daniel (age 35, DOB: 4/21/1983, SSN: 502-00-1589) and Penny Strickland (age 29, DOB: 11/25/1989, SSN: 223-00-8146) were married in August and have decided to file a joint retum. They live at 3434 Persimmon Way. Your City. Your State Your ZIP. They did not live in a community property state at any time during the tax year. Both Daniel and Penny wish to contribute $3 to the Presidential Election Campaign. They were both covered by a health insurance plan for the entire year. Daniel has two children from a previous marriage for whom he is currently paying child support. Three years ago, Daniel was out of work for 18 months due to a medical condition and as a result, his child support payments became delinquent. The Internal Revenue Service was notified of his arrearage and seized his previous year's federal tax refund. Daniel still owes more than $12,000 in delinquent child support and is aware that his current year federal tax refund will also be seized. Penny wants to ensure that she receives her portion of the refund. Penny is still paying on student loans and paid $969 in student loan interest during the tax year. Daniel is a nurse and Penny is a teacher, they have been employed all year taxes withheld from their wages. Their financial statements follow the questions below. both had federal If Penny files a joint return with Daniel and she is due a refund, could her part of the refund be seized by the IRS for the delinquent child support? Is Penny responsible for Daniers child support debt? Could Penny choose to file Married Filing Separately? Could Penny file a joint return with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers? 1Wages, ps, ohar compensation 2 Fadersl income x witheid a Employee's SSN 223-00-8146 OMB No. 1545-CCC 38442.00 5266.30 3 Sopal securty wages 4Scal securty tax wihheld 2457.80 39642.00 SMecicare wagas and 1ps 6 Medicare tax withhe bEmployer identfication number 57-5544661 574,81 39642.00 cEmployer's nane address and ZIP code Sacred Heart Academy 200 Seminary Lane Your Cty, Your State- Your ZIP eEmployee's ist nane and intal Penny Last rame S. Strickland 3434 Persimmon Way Your Cty, Your State Your ZIP Emplayee's acdress and ZIP code T Sppal Securty tps 8Alocatd ps d Control Numbe 0 Depandent canre benes Nongualfed plars 12a D 14 Cther 1200.00 12 12 12d Retrement Thirdparty sick pay 13 Statuary enployee Enployer's se D rumber plan 5 Stae 18 Stae wgs fos e 17 Stae incoTe ta 2437.69 YS 575544661 38442.00 13 Locl wages, ps, et Local income tax 20 Locity rame Copy B to be fied with W-2 20XX Wage and Tax Statement Form employee's Federal Income Tax Return This information is being furnished to the Intemal Revenue Service. you are required to file a tax retum, a negligence penalty or other sanction may be imposed on you if this income is taxable and you fail to report it Emplayes's social secuty unber 502-00-1589 OMB Na1545-0008 Sef e+file bEmployer identificaton umter (EN 63-0005123 1Wages tips, oher compersaton 42681.52 2 Federal income tax wihed 3814.56 4 Social seouty ax witted 2646.25 3 Socal seouty wages c Employer's name, addres, and ZP code 42681.52 S Medicare wages and tps St. Mary's Hospital 211 Wheaton Blvd 6 Medcare x wihteid 42681.52 618.88 Socal seourily ps SAcated ps Your City, Your State - Your Zip d Control rumber 9Ventication code 10 Dependert care berefts Employee's frst nama and intal Last nane Suft 11 Norqua fed plans 12a Seeirstuctions for box 12 Daniel Strickland 13 Sauy Rediremen Thirdprty emlayes pan 12 skpay 3434 Persimmon Lane Your City, Your State - Your Zip 14 er 12c 12d |Emplayee's aress and zP code 15 S Employe's st nunber 15 Stae wages, s, et 17 5te icome YS 630005123 Loal wages, tip,e Locl inome a20 Locaity nam 42681.52 2207.28 Wage and Tax Statement Departmentof he Treasury-Insemal Reverue Serwce 20XX Form W-2 Copy B-To Be Filed Wth Employae's FEDERAL Tax Return. This information is being fumahed to the Intemal Revenue Service 5. Answer the following question based on the infomation in Scenario 2 for Daniel and Penny Strickland Penny could choose to file Mamied Filing Separately. A) True B) False 6. Answer the following question based on the information in Scenario 2 for Daniel and Penny Strickland Penny could file a joint retum with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers. C A) True B) False 7. Answer the following question based on the tax retum you prepared for Daniel and Penny Strickland Select the total wages: C A) $81,124 B) $82,093 C) S80,155 CD) S82,324 8. Answer the following question based on the tax retum you prepared for Daniel and Penny Strickland Select the Adjusted Gross Income (AGI): A) $81,124 B) $82,093 C) S80,155 D) S82,324 Chapter 10: Learning Activity Scenario 1 Wesley and Anne Wesley has been divorced from Anne for six months. They have not lived together for two years. Prior to their final divorce decree, they filed joint returns. During the time they were separated Anne won $25,000 from the lottery. Wesley was unaware that Anne had lottery winnings, which she failed to report. Wesley and Anne have received notification from the Intermal Revenue Service that their return has been changed to reflect an increase in income and tax liability due to the lottery winnings. They have also been assessed with interest and penalties. Are both Wesley and Anne liable for any tax, interest, or penalty due? Should Wesley file a request for innocent spouse relef because he had no knowledge of the lottery winnings? Scenario 2 Daniel and Penny Strickland Complete a tax return for the Stricklands. Daniel (age 35, DOB: 4/21/1983, SSN: 502-00-1589) and Penny Strickland (age 29, DOB: 11/25/1989, SSN: 223-00-8146) were married in August and have decided to file a joint retum. They live at 3434 Persimmon Way. Your City. Your State Your ZIP. They did not live in a community property state at any time during the tax year. Both Daniel and Penny wish to contribute $3 to the Presidential Election Campaign. They were both covered by a health insurance plan for the entire year. Daniel has two children from a previous marriage for whom he is currently paying child support. Three years ago, Daniel was out of work for 18 months due to a medical condition and as a result, his child support payments became delinquent. The Internal Revenue Service was notified of his arrearage and seized his previous year's federal tax refund. Daniel still owes more than $12,000 in delinquent child support and is aware that his current year federal tax refund will also be seized. Penny wants to ensure that she receives her portion of the refund. Penny is still paying on student loans and paid $969 in student loan interest during the tax year. Daniel is a nurse and Penny is a teacher, they have been employed all year taxes withheld from their wages. Their financial statements follow the questions below. both had federal If Penny files a joint return with Daniel and she is due a refund, could her part of the refund be seized by the IRS for the delinquent child support? Is Penny responsible for Daniers child support debt? Could Penny choose to file Married Filing Separately? Could Penny file a joint return with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers? 1Wages, ps, ohar compensation 2 Fadersl income x witheid a Employee's SSN 223-00-8146 OMB No. 1545-CCC 38442.00 5266.30 3 Sopal securty wages 4Scal securty tax wihheld 2457.80 39642.00 SMecicare wagas and 1ps 6 Medicare tax withhe bEmployer identfication number 57-5544661 574,81 39642.00 cEmployer's nane address and ZIP code Sacred Heart Academy 200 Seminary Lane Your Cty, Your State- Your ZIP eEmployee's ist nane and intal Penny Last rame S. Strickland 3434 Persimmon Way Your Cty, Your State Your ZIP Emplayee's acdress and ZIP code T Sppal Securty tps 8Alocatd ps d Control Numbe 0 Depandent canre benes Nongualfed plars 12a D 14 Cther 1200.00 12 12 12d Retrement Thirdparty sick pay 13 Statuary enployee Enployer's se D rumber plan 5 Stae 18 Stae wgs fos e 17 Stae incoTe ta 2437.69 YS 575544661 38442.00 13 Locl wages, ps, et Local income tax 20 Locity rame Copy B to be fied with W-2 20XX Wage and Tax Statement Form employee's Federal Income Tax Return This information is being furnished to the Intemal Revenue Service. you are required to file a tax retum, a negligence penalty or other sanction may be imposed on you if this income is taxable and you fail to report it Emplayes's social secuty unber 502-00-1589 OMB Na1545-0008 Sef e+file bEmployer identificaton umter (EN 63-0005123 1Wages tips, oher compersaton 42681.52 2 Federal income tax wihed 3814.56 4 Social seouty ax witted 2646.25 3 Socal seouty wages c Employer's name, addres, and ZP code 42681.52 S Medicare wages and tps St. Mary's Hospital 211 Wheaton Blvd 6 Medcare x wihteid 42681.52 618.88 Socal seourily ps SAcated ps Your City, Your State - Your Zip d Control rumber 9Ventication code 10 Dependert care berefts Employee's frst nama and intal Last nane Suft 11 Norqua fed plans 12a Seeirstuctions for box 12 Daniel Strickland 13 Sauy Rediremen Thirdprty emlayes pan 12 skpay 3434 Persimmon Lane Your City, Your State - Your Zip 14 er 12c 12d |Emplayee's aress and zP code 15 S Employe's st nunber 15 Stae wages, s, et 17 5te icome YS 630005123 Loal wages, tip,e Locl inome a20 Locaity nam 42681.52 2207.28 Wage and Tax Statement Departmentof he Treasury-Insemal Reverue Serwce 20XX Form W-2 Copy B-To Be Filed Wth Employae's FEDERAL Tax Return. This information is being fumahed to the Intemal Revenue Service 5. Answer the following question based on the infomation in Scenario 2 for Daniel and Penny Strickland Penny could choose to file Mamied Filing Separately. A) True B) False 6. Answer the following question based on the information in Scenario 2 for Daniel and Penny Strickland Penny could file a joint retum with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers. C A) True B) False 7. Answer the following question based on the tax retum you prepared for Daniel and Penny Strickland Select the total wages: C A) $81,124 B) $82,093 C) S80,155 CD) S82,324 8. Answer the following question based on the tax retum you prepared for Daniel and Penny Strickland Select the Adjusted Gross Income (AGI): A) $81,124 B) $82,093 C) S80,155 D) S82,324