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11/29/2017 Case Assignment - Part A & B Aly Regenold Income Taxes - ACCT 3060: ACCT 3060 - Fall 2017 Internet Case Assignment - Part A & B 1. instructions | help Shelly Beaman (social security number 412-34-5670) is single and resides at 540 Front Street, Ashland, NC 27898. Shelly's W-2 wages Federal withholding Social security wages Social security withholding Medicare withholding State withholding 1099-INT New Bank 1099-DIV XYZ, Inc. Ordinary dividends Qualified dividends $ 55,800 10,044 55,800 3,460 809 3,348 532 258 258 Shelly had the following itemized deductions: State income tax withholding (from W-2) State income tax paid with 2015 return Real estate tax Mortgage interest Charitable contributions $ 3,348 600 4,200 11,800 2,500 Shelly also started her own home design consulting business in March 2016 (Business code, 238990, Cash basis). The results of her business operations for 2016 follow: Gross receipts from clients Vehicle mileage $154,000 21,000 business miles (2,100 per month) 32,000 total miles during the year 2009 Chevy Suburban Placed in service 03/01/16 Postage Office supplies State license fees Supplies Professional fees Design software Professional education programs (registration) Travel to education program Airplane Lodging $119ight 3 nights Meals per diem $46 per day x 3 days Business Assets Laptop Computer Printer Copier Furniture Building Phone Internet service Rent Insurance (750) (1,500) (155) (5,300) (2,500) (1,000) (550) (350) Date Purchased 6/08/16 3/05/16 3/01/16 6/02/16 4/01/16 3/01/16 $ Cost 2,500 5,700 1,800 1,700 5,000 175,000 (600) (450) (8,300) (1,700) Shelly made a $27,000 estimated tax payment on September 15, 2016. Prepare Shelly's Form 1040 for 2016 including all of the supplementary schedules. Schedule A, Schedule B, Schedule C, Form 4562, and Schedule SE are required. Section 179 is elected on all eligible assets in 2016. She wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Shelly had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions. (List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Input all the values as positive numbers unless otherwise stated in the forms. Round your intermediate computations to nearest whole dollar value.) Use the appropriate EIC Tables (6A-6, 6A-7 or 6A-8). Use the Tax Tables or Tax Rate Schedules to determine tax. http://ezto.mheducation.com/hm.tpx 1/2 11/29/2017 Case Assignment - Part A & B 1040 for a Single taxpayer with no dependents. 1040 PG 1 1040 PG 2 Schedule A Schedule C Page 1 Schedule B Schedule C Schedule SE 4562 Page 1 4562 Page 2 Page 2 Page 2 Page 2 of Schedule SE. Please enter the information of the taxpayer whom this form applies to. Schedule SE (Form 1040) 2016 Name of person with self-employment income (as shown on Form 1040) Attachment Sequence No. 17 Social security number of person with selfemployment income (xxx-xx-xxxx) Shelly Beaman Page 2 412-34-5670 Section B - Long Schedule SE Part I Self-Employment Tax Note. If your only income subject to self-employment tax is church employee income, see instructions. Also see instructions for the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I 1a Net farm profit or (loss) from Schedule F, line 34 and farm partnerships, Schedule K-1 (Form 1065), box 14 code A. Note. Skip lines 1a and 1b if you use the farm optional method (see inst.) 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code Z (Enter as negative) 1b 2 Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report. Note. Skip this line if you use the nonfarm optional method (see instructions) 2 3 Combine lines 1a, 1b, and 2 4a 0 0 4b 0 4c 0 5b 6 0 0 7 118,500 8d 0 118,500 3 4a If line 3 is more than zero, multiply line 3 by 92.35% (.9235). Otherwise, enter amount from line 3 Note. If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 4a and 4b. If less than $400, stop; you do not owe self-employment tax. Exception. If less than $400 and you had church employee income, enter -0- and continue 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income 5a b Multiply line 5a by 92.35% (.9235). If less than $100, enter -06 Add lines 4c and 5b 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2016 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $118,500 or more, skip lines 8b through 10, and go to line 11 8a b Unreported tips subject to social security tax (from Form 4137, line 10) 8b c Wages subject to social security tax (from Form 8919, line 10) 8c d Add lines 8a, 8b, and 8c 9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4% (.124) 9 10 11 Multiply line 6 by 2.9% (.029) 11 12 Self-employment tax. Add lines 10 and 11. Enter here and on Form 1040, line 56, or Form 1040NR, line 54 12 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (.50). Enter the result here and on Form 1040, line 27, or Form 1040NR, line 27 Part II 13 Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income was not more than $7,320, or (b) your net farm profits were less than $5,284. 14 Maximum income for optional methods 14 15 Enter the smaller of: two-thirds (2/3) of gross farm income (not less than zero) or $4,880. Also include this amount on line 4b above 15 4,880 Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits were less than $5,284 and also less than 72.189% of your gross nonfarm income, and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution. You may use this method no more than five times. 16 Subtract line 15 from line 14 16 17 Enter the smaller of: two-thirds (2/3) of gross nonfarm income (not less than zero) or the amount on line 16. Also include this amount on line 4b above UYA 17 Schedule SE (Form 1040) 2016 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2017 McGraw-Hill Education. Schedule C Page 2 4562 Page 1 2017 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2