Question
Please help me prepare the tax return 1040. Sarah is a 50% owner in a friend's company, Bright Day Flowers (BDF).BDF is a Subchapter S
Please help me prepare the tax return 1040.
Sarah is a 50% owner in a friend's company, Bright Day Flowers ("BDF").BDF is a Subchapter S corporation.The company reported ordinary business income for the year of $22,000.Sarah acquired the stock several years ago.BDF's employer identification number is 56-3535353.
Sarah won 10 tickets through a radio contest to the touring broadway-style production of Wholesome.The value of the tickets was $200 each.Sarah took her friends from work to the production.
Sarah does not want to contribute to the Presidential Election Campaign.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.
Sarah lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force.She collected $1,250 in unemployment benefits.She is currently looking for another job.
Sarah 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.
Tax Return-Individual Number Two (after Chapter 5) Instructions: Please complete the 2016 federal income tax return for Sarah Hamblin. Be sure to include only required tax forms when completing the tax return. For purposes of this assignment, unless instructed otherwise, you do not need to attach Form 8582. Also, ignore the requirement to attach the Form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Sarah Hamblin and her now ex-husband Kevin were legally divorced on March 1, 2016. As of the end of the year, Sarah was unmarried. Sarah and Kevin had only one child, an 11 year old girl named Elizabeth. As part of the divorce decree, Sarah was given custody of Elizabeth and Kevin was required to pay 1) child support for Elizabeth's care, and 2) alimony to Sarah until she remarries or dies. Because Kevin will be making child support payments, the divorce decree provided that Kevin will be permitted to claim the tax dependency exemption for Elizabeth until Elizabeth no longer qualifies as a tax dependent of either parent and the decree obligates Sarah to sign and/or file any required forms to cause this result to occur. Sarah rents a home (separate from Kevin) that she pays for herself. Elizabeth lives with Sarah most of the time but she visits and stays with her father every other weekend and most holidays. During the year, Elizabeth stayed at Kevin's house a total of 74 nights. Sarah provided the following information for 2016: Sarah's Social Security number is 123-43-4321 Elizabeth's Social Security number is 123-34-1234 Sarah's mailing address is 1245 Rose Petal Drive, Madison, Wisconsin 53562 Elizabeth is a U.S .citizen The following was reported on Sarah's Form W-2: Employer Gross Wages Central Wisconsin Heating and Air 34,350 Federal Income Tax Withholding 6,950 All applicable and appropriate payroll taxes were withheld by the employer. State Income Tax Withholding 2,125 During the year, Sarah also received the following: Child Support Payment from Kevin Hamblin Alimony Payment from Kevin Hamblin Gift from her father to help with legal bills Interest income on U.S. Treasury Bond Interest income of Madison City Bond (municipal bond) Interest income from First Bank of Madison Life insurance proceeds on the death of her mother $12,000 $16,000 $ 8,500 $ 400 $ 250 $ 165 $45,000 Sarah is a 50% owner in a friend's company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. (BDF) is a Subchapter S corporation. The company reported ordinary business income for the year of $22,000. Sarah acquired the stock several years ago. Sarah worked a total of 600 hours at the BDF shop in the evenings and on the weekends during 2016. Bright Day Flowers, Inc.'s employer identification number is 56-3535353. Sarah entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Wholesome. The value of the tickets was $200 each. Sarah took her friends from work to the production. Sarah lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1,250 in unemployment benefits during the year. She is currently looking for another job. Sarah had qualifying minimum health insurance coverage provided to her because of her employment with Central Wisconsin Heating and Air for each month in 2016 (the employer continued to cover her through the end of the year). Elizabeth had qualifying minimum health insurance coverage provided through Kevin through his work. Sarah 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. Sarah was provided with the following benefits as part of her employment: Group-term life insurance coverage of $50,000. The cost to cover Sarah for the company for the tax year is $150. Access to the company photocopy machine. Sarah estimates she made $14 worth of copies during the year primarily for use with her church group activities. Sarah reported no itemized deductions other than any described above. Sarah does not want 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 checkStep by Step Solution
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