Preparation

This assessment will require significant research and critical thinking to complete each required form successfully. An incorrect entry on one form will create incorrect entries in other forms.

There aretwoparts to this assessment. Be sure to complete both parts and submit the necessary materials.

• Part 1: Determine eligible tax credits by completing official worksheets.
• Part 2: Complete Schedule A and the 1040.

Scenario

Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2019.

• They have three children, Ashley, age 9; Patrick, age 6; and John, age 17.
• Social Security numbers are: Jacob,222-33-4444; Taylor,555-66-7777; Ashley,888-99-1234; Patrick,789-56-4321; John,123-45-6789.
• Taylor works part-time as a paralegal.
• She earned $31,000 in 2019.
• Income Taxes: $4,200 withheld.
• Interest received from Local Bank: $6,575.
• Estimated tax payments: $25,000.
• $350 paid with their 2018 state tax return.
• Jacob and Taylor bought their first house in 2019.
• Home mortgage interest: $12,246.
• Property tax: $12,230.
• Federal income withholding: $2,350.
• Charities: $4,500.
• $435 to rent a moving truck.
• $8,000 to put new siding on the house.
• $11,600 for child care expenses ($5,800 for each child).
• It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN98-7654321).
• Taylor is a part-time student at Ball State University in Muncie.
• She received a 1098-T indicating tuition and fees for 2019 in the amount of $6,011.
• Health insurance for the family, through Taylor's job, cost $7,500 for all 12 months of 2019.
• They paid deductibles and co-payments of $2,550.

Instructions

• Read the information provided in the scenario above.
• Download the following tax forms and instructions fromIRS.gov:
• 1040.
• Schedule A.
• Schedule 1.
• Schedule 3.
• 2441.
• 8863.

Part 1

Use the information in the scenario, onIRS.gov, and in theinteractive IRS toolsto interpret official rules and instructions to determine available tax credits.

• Complete an official worksheet foreach tax creditto demonstrate eligibility.
• Submit each tax credit worksheet.

Part 2

Use the information in the scenario, on IRS.gov, and in the interactive IRS tools to Interpret official rules and instructions to complete the following:

• Complete Schedule A.
• Enter data from Schedule A into the 1040.
• Apply the rules and tax tables to calculate the tax owed and the amount of any refund.
• Submit Schedule A and the completed 1040.