please complete all parts with given instructions
- Based on the facts below, prepare for Shelli Thomson her US (federal) individual income tax return (Form 1040), her Schedule A (Itemized Deductions), Schedule 3 (Additional Credits and Payments). - You can use either the forms and schedules posted on Canvas or download the forms and schedules from irs.gov. - You can upload on Canvas the forms, schedules, and any other document as a Word document, PDF, scanned document, or screen shot. - If you cannot type and/or do not have access to a computer, you can complete the forms and schedules by hand (i.e., manually using pen or pencil) and upload them to Canvas 1. Step 1: Review the attached Word Document 2. Step 2: Choose taxpayer's filing status 3. Step 3: Determine if the taxpayer has dependent children and/or dependent relative 4. Step 4: Identify 1) items that are included and excluded from gross income; and 2 ) items that are deductible and not deductible from gross income 5. Step 5: Determine if the taxpayer should claim a standard deduction or itemize deductions 6. Step 6: Determine the taxpayer's tax credits 7. Step 7: Calculate the taxpayer's adjusted gross income, taxable income, and amount of tax refund or taxes owed 8. Step 8: Complete Form 1040, individual income tax return, Schedule 3 , additional credits and payments, Schedule A, itemized deductions, and other relevant tax forms FACTS 1. Shelli Thomson works as a chemist for Sargent Chemical Corp. 2. Shelli Thomson's a. Birthday is January 1, 1970; b. Social Security number is 111-11-1113; c. Address is 7605 Walnut Street, Los Angeles, CA 90013 ; d. Tax return filing status is single; and e. Her ordinary income tax rate is 10%. 3. For line 11 of the Form 1040, multiply the total amount of income you entered on line 10 of the Form 1040 by 10% (Shelli's income tax rate) and enter that amount on line 11. 4. For the taxable year, Shelli: a. Earned $50,000 in wages as a chemist b. Her employer, Sargent Chemical Corp, did not withhold federal and state income taxes; c. Received $200 of interest on her savings bank account; d. Paid $7,000 in out-of-pocket medical expenses including co-pays for prescription drugs and doctor appointments; e. Paid property (real estate) taxes of $5,000 to the city of Los Angeles; f. Paid $10,000 in home mortgage interest on her home mortgage. Her mortgage was $100,000 and was secured by her home; g. Incurred a $2,000 theft loss; h. Incurred a $3,000 casualty loss after her home was damaged by a tornado in a federally declared disaster area; i. Donated $200 in cash to a tax-exempt charity; and j. Can claim a $500 American Opportunity Credit
