Prepare tax return using the W2 and other forms?

Use software or forms to fill 2018 tax return.

Practice Return 7 Drake Tax 2018 In this scenario, you will practice entering the following: Form W-2 Income Schedule K1 Itemized Deductions Income from Form 1099DIV Instructions This practice return will help you become familiar with return preparation in Drake Tax. Use the scenario information and the attached source documents to complete the return. After the return is complete, compare your results with the solutions provided online. Go to Support.DrakeSoftware.com for solutions and more practice returns. After logging in, access Training Tools > Practice Returns. To agree with provided solutions: 0 Suppress state returns by entering "0" in the Resident state field on Screen 1 0 Install all program updates 0 Correct all EF diagnostic messages Attached Source Documents 0 Form W2 0 Form 1099DIV 0 Form 1098 0 Schedule Kl Drake Tax 2018 Practice Return 7 SCENARIO INFORMATION Right Angle, age 48, is an attorney and lives alone in Cambridge, MA. He is a partner in his law firm, Prime Number Partners. Right Angle divorced and has no dependents. He is a US. citizen and not a qualifying child or dependent of anyone else. Right Angle provided his MA driver's license. His license number is 123456789 issued on 01/01/2017. It expires on 01/01/2020. TAXPAYER INFORMATION NAME Right Angle SSN 400006007 DATE OF BIRTH 10-14-1970 EMAIL: Angle@1040.com OCCUPATION: Attorney Address: 599 Obtuse Rd, Cambridge MA 02139 Phone: 8285248020 @201 9 Drake Software DEPENDENT INFORMATION Right Angle has no dependents. INCOME Mr. Angle works as an attorney and is a partner in his law firm. He received Form W-2 and Schedule K-1 from the law firm. He also received Form 1099-DIV reporting dividend income. HEALTH COVERAGE INFORMATION Right Angle did not have health coverage during the year and does not qualify for any exemptions. OTHER INFORMATION Right has provided information on expenses that could be deducted on Schedule A and request to itemize deductions if it is more than his standard deduction. The expenses he provided include: Mortgage Interest reported on Form 1098 (attached) $8200.00 Real Estate Tax $1200.00 Personal Property Tax Paid $700. Contribution by Check to Charity 1 $500.00 Contribution by Check to Charity 2 $1250.00 Contribution by Check to Charity 3 $8500.00 Contribution by Check to Charity 4 $1000.00 Subscription to Law Journal $250.00 Tax Prep Fees for 2017 Tax Return $225.00 During 2018, the taxpayer made four quarterly estimated tax payments in the amount of $4,500 each Drake Tax 2018 Practice Return 7 02019 Drake Software22222 Void a Employee's soxial security number For Official Use Only 400-00-6007 OMAR Na. 1545-0008 b Employer identification mather (EIN) 1 Wages, tips, other compensation 1 2 Focksal iscare ta witheld 40-0007016 142200. 00 27529.50 Emplayer's name, address, and ZIP code 3 Social security wapes 4 Social security tas withheld Prime Number Partners 128400. 00 7560. 1111 Polynomial Rd 5 Medicare wages and tips 6 Medicare tax withheld 158000.008 2291.00 7 Social security tip Allocated tips Cambridge 02139 d Carol momle Verification code I0 Dependent cage benefits. c Employee's first name and intial Buff. 1 1 Nerqualified plans 12a Ser instructions for buzz 12 Right Angle D 15800 . 00 12b 599 Obtuse Rd 14 Oher 124 124 Cambridge . A 02139 f Emplayon's address and ZIP ood Ii Lecal wageLike a Form W-2 Wage & Tax Statement 2018 Department of the Treasury - Internal Revenue Service For Privacy Act and Paperwork Reduction Copy A far Social Security Administration - Send this entire page with Form 0000/1024 Act Notice, see the separate instructions. W-3to the Social Security Administration; photocopies are not acceptable. CORRECTED (if checked) RECIPIENT'S.LENDER'S name, street address, city or town, state or rution: The amount shown may | OMB No. 1545-0901 province. country. ZIP or foreign postal code, and telephone no. not be Tilly deductible by you. cod on the loan amount and the cost and value of the Mortgage Mortgage Bank secured property may apply. Abo. 2018 1425 Finance St you may only deduct interest to the Interest extent i was incured by You, Statement Big Rock IL 60511 actually paid by you, and not reimbursed by another person. For 1090 1 Mortgage interest received from payensu bonowen's) $ 8200 .00 Copy RECIPIENT'S LENDER'S fodora 2 Outstanding mortgage For Payer/ dentification number PAYER S/BORROWER 'S tampayar derification no. principal as of 1/1/2017 3 Mortgage origination date Borrower 40-0006111 400-00-6007 $ 329125 . 00 01/01/2011 The Information in boxes 1 4 Refund of overpaid 5 Mortgage insurance hrough 10 is important tax Interest premiums information and is being PAYER S/BORROWER'S name fumished to the Intomal S Plavenue Service. If you are Right Angle 6 Points paid on purchase of principal residence required to file a retum. a ugligunce punalty or other Street address (including apt. no ) 7 is address of property Recurring mortgage same as sanction may be im 599 Obtuse Rd PAYER S/BORROWER'S address? you if the HS determines f "Yes." box is checked that an underpayment of If "No, " see bok 8 or @, bellow tax results because you City or town in postal code overstated a deduction Cambridge MA 02139 8 Address of property securing mortgage for thia mortgage intarget r for these points, reported in bonus 1 and 6;or 10 Number of mortgaged properties 11 Other because you didn't report if property securing mongage has no ackdress, below lo the The refund of internet description of the property bon 4% or because you Account number joce instructions claimed a non-deduclitille item. For 1 098 Keep for your records) www.irs.gov.form1094 Department of the Treasury - Internal Revenue ServiceCORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP | ia Total ordinary dividends OMB No. 1545-0110 or foreign postal code, and telephone no. $ 900.00 SYMMETRY BANK 1b Qualified dividends 2018 Dividends and Distributions 444 NULL LANE CAMBRIDGE MA 02138 900.00 Form 1059-DIV in Total capital gain diatr. 2 Unrecap. 5co. 1250 gain Copy B PAYER'S federal identrication number| RECIPIENT'S identification number 2e Section 1 202 gain ad Collectibles (28 56) gain For Recipient 40-0008238 400-00-6007 RECIPIENT'S name 3 Nondividend distributions Federal income tax withheld RIGHT ANGLE This is important ins formation and is 5 Investment expenses being fumished to Street address (Including apt. no) he Intomal Revenue Service. If you are 599 OBTUSE RD B Foreign tax paid Foreign county or L.S pemasson roqu rod to illo a ratum, a nogligonca City or town, state or province, c ce, country, and ZIP or foreign postal code panelity or cthor canction may be CAMBRIDGE MA 02139 B Cash kuiddin distribution Noncash Lquidation distributions imposed on you if this Income k taxabis and the IRS FATOA filing 10 Exempt-interest dividends |11 Specified private activity determines that it ha requiremon band interest dividends not been reported. Account number (see instructions 12 Sinte 15 Starlet ification to 14 State tax withheld Form 1099-DIV (keep for your records) wwwww.jrs.gow.formiDoody Department of the Treasury - Intomal Rovonuo Sorvica651116 Schedule K-1 2018 Final K-1 Amended K- OMB No. 1545-0123 (Form 1065) Part III Partner's Share of Current Year Income Department of the Treasury Control : 0515 Deductions, Credits, and Other Items Intemal Revenue Service For calendar year 2018, or tax year Ordinary business Income (loas] 15 Credits beginning 2018 ending 20 71 , 594 Partner's Share of Income, Deductions, Net rental real estate Income ne (loss) Credits, etc. See page 2 of form and separate Inctruations 3 Other inet rental Income (loss) Part 1 16 Foreign transactions Information About the Partnership A Partnership's employer Id n number 4 Guaranteed payments 40-0007016 Partnership's name, address, city, state, and ZIP code C Interest Income PRIME NUMBER PARTNERS 6a Ordinary dividends 1111 POLYNOMIAL AVE CAMBRIDGE, MA 02139 6b Qualified dividend: C IRS Center where part partnership filed retum Gc Dividend equivalents efile D Check if this la a publicly traded po ded partnership (PTP Royalde Part II Information About the Partner Net short-term capital gain (loss] 17 Altemative minimum tax [AMT) Items E P Partner's Identifying number 400-00-6007 9a Net long-term capital gain (loos) Partner's name, address, city, state, and ZIP code RIGHT ANGLE 9b collectibles (2895) gain (loss) 599 OBTUSE RD CAMBRIDGE , MA 02139 Bc Unrecapture ptured section 1250 galr 18 Tax-exempt Income and nondeductible expenses G X tner or LLC Limited partner or other LLC 10 Net section 1231 gain (loos) iber-manager member H X| Domestic partner Foreign partner 11 Other Income (loss) What type of entity Is this partner? INDIVIDUAL If this partner Is a retirement plan (IRA/SEP/Keogh/etc.), check here 19 Distribudons Partner's share hare of profit, loss, and tal (see Instructions] Beginning Profit 50.0000000 50 . 0000000 % 12 Section 178 deduction Loss 50 . 0000000 50 . 0000000 20 Other Information Capita 50 . 0000000 50 . 0000000 13 Other deductions Partner's share of llabilltes: Beginning Ending Nonrecourse Quallfled nonrecourse Timancing RECOURSE 14 Self-employment eamings (loss) 71 , 594 Z STMT Partner's capital account analysis Beginning capital account 187 , 500 Capital contributed during the year "See attached statement for additional information. Current year Increase (decrease) 71 , 594 Withdrawals & distributions Ending capital account 71 ,594 Tax basis GAAP ection 704(b) book For IRS Use Only M Did the partner contribute property with a bullt-in gain or loos? X| No " "Yes," attach statement (see Instructions For Paperwork Reduction Act Notice. see Instructions for Form 1065. www.Irs.gow/For1065 Schedule K-1 (Form 1065) 2018 EEAQBI Qualified Business Income Deduction Information Reported in Accordance with Prop Reg 1.199A-6 2018 Schedule K-1, Line 20, Codes Z-AD Partnership N Name EIN PRIME NUMBER PARTNERS 10-0007016 Partner Name SSN/EIN RIGHT ANGLE 400 -00-6007 Taxpayer Name of Trade or Business Identification Qualified Section 1231 Section W-2 Unadjusted ualified REIT Qualified PTP Business Wages Immediately Dividends SSTE Number ncome/(loss) Gain (Loss) 179 After Acquisitio Income/ (Loss) (AA) (AB) (AC) (AD) 1065: PRIME NUMBERS 71, 594 100, 000 No Specified Service Trade or Business WK_QBIP~.LDPartner's Adjusted Basis Worksheet _Keep for your records . 2018 Partner Humber .* TIN : 400 - 00 - 6007 Tax year ardina : 12 - 3 1 - 2018\\ OnmarchIn $ : 50. 000000 HET = Of Farther .* RIGHT ANGLE HUIT = Of Fortnerchip _ PRIME NUMBER FARTHERE LEIN 10 - DOOTDIE Partner's Share of purr st_ hip lattice = 1Ech 1 - 1 . Item }}| Partners share of farr ship lattice _ tom FALLOF Year* more_ _ _ _ IT science; In share of Forrestif Listlites During It _ bax period `JustEd EZE from Erectors yes 50, 000 C-aFEW contre_worE affectsits\\ Can I't arin recur zed thi` year on contribu_`on `' procety to partnership 10, 000 Cash contre_ted during the year* 10 , 000 Adjusted to~ ~ ~' FREEEty content* Art_ted during the year* Fartnezhip Interest acquired other than by cash or property Total anational contribution= ( Tots In= = 24- 20) 20 , 000 Items of Income or gain for the = period Craters Income SC^ ^ - 1 , Line ! 71 , 59 4 Fizz Extr` = FiEntal Income 507 K - 1 , Line ?! Other Flora Insome* \\SCH ` - 1 , Line 35} Interest Dividends & Fizzthe` SEM K - 1 , LINE _ SEX, E - QT SCh K - 1 , Line = = $ 32 ) Either FOR^` Income* 50^ ^ - 1 , Line 1 12) {econ 1271 { 010 1:5^ K - 1 , LINE 1 1 1 Other Income 307 1 - 1 , Line 1 1 1 Tar Event Incore* 1.50^ ^ - 1 , Line _ lea & t` {`Es : D's^eton &^`` THEn't Increase from Recapture JEune` Great BEELZE $ 43101, 50101 {Jickzia 137 1 1:01) Total Item of home or bans ! Total Ine = 32 - 31) 71 , 594 Inert _ _= In Fartherthe Share of Farmership Latin e _ Hor Ine [ STEVE* "stal Incre z_ _ _ In basis / combre In= = 1 through1 4 ] 1 4 1 , 59 4 - = Distributions to the Farther during the year BELIEVE In Father's Share of Farrer_ tif Latitles to` Ire G ait^TE DEcrease for Non-Deductte ETDE DurEs CreditAtal_timers DecTezze for Depletion* Total cher deutz _ _ _ The EZELI Buttotal - 12 =" after all JETbutons and other decTer _ _ ILne 5 minu = Ine = E-{` 1 41 , 59 4 terms Of Love and Deducther = [Allows a for the current gear Crater, Lazy FaTE Z Cole Lr= 103) 10 3 . FELL Estate Fental Loss FaDE Z Cal = Lr= 100 ) Other FEEL LESS Faze Z Cole Lr= 1oct L-IFHis Loss FaJE Z Col = Lr= 1Day Other For`all Loss Faze Z Col = Lre they {Econ 1721 Logo IFZJE Z Cole. LEE ICT ,\\ FAZE Z Ed & Lre tool Grantable Contr_there IFZzz Z Cal = Lr= Ion! FELON ITS EXTERICE* FaDE Z Col = Lr = 101 Fortiold Income EXISTIVE =\\ IFZJE Z Cole Lr= 101 [FZJE Z Col E LYE ICKY Interest EX EGE En Ime_ _ ^Ent List^ FZJE Z Cole Lr= 101* Total Foreign Tart = FadiREVUE_ Faze Z Cole Lr= 10mi EEcon ESTE] Expenditure FZzz Z Cole Lre Ion ! IFZzz Z Cole, Lre tool IFZJE Z Cole, Lr= 10p ) Total Items " LEE_ _and DEJurthere ITotal Tres 150 - 10 0 1\\ #1 . Adjusted ELITE of Farrer_ his Interest I{_ _not _ negative ! Ire ELre TO HI-FLEX Ed _ _^ 1 41 , 5, 5 4 12 A`Tick a``= ment. Itmount tom In= =] 12 . 141 , 594 12 . Enter te amouri from Ine = E . J . S and 10 13 _ 14 . Enter my norrecourse hours , Etc. 15 . Enter { { FURY Of farmer = Federal property not LEed In the Farrer_hip that share ; a nonrecourse loan on line 14| TE . Combine ine: 12 Fraun 15 . Pressure re current year ke= [z te Deducted SEE FOR 5TEZ T E . 14 1 , 59 4 WH_ FEALLO