Prepare the couples federal income tax return, Form 1040 for the year ended December 31, 2021, plus any additional schedules necessary. Forms are available at the IRS website Links to an external site.under Forms & Instructions. Please utilize the facts and the information included in the Miller family tax documents to complete this assignment. We will be using the 2021 federal income tax forms, rates, and laws. For any information not provided, please use reasonable assumptions.

Tax Return Project ACCTG 310 In this scenario, you will practice entering the following: - Form W-2 income - Retirement income reported on Form 1099-R - Income reported on Forms 1099-INT and 1099-DIV - Sale of stock reported on Form 1099-B - Business income and expenses - Rental property Instructions SCENARIO INFORMATION This practice return will help you become more familiar with individual return preparation. Use the Greg and Danielle Miller live with their children in scenario information and the attached source_ Berrysburg, PA. Both enjoy good health and eyesight. documents to complete the 2021 Federal Form 1040 Greg owns and operates a landscaping business and and all schedules necessary which may include: during winter months, when business is slow, he works as a substitute teacher. Danielle is a firefighter for the City of Harrisburg and is retired from the United States Army. Forms may be obtained at www.irs.gov. For any information not provided, please use reasonable assumptions. Attached Source Documents Address: 55 Cedar Crest Lane, Berrysburg, PA 17005 INCOME Greg's landscaping business is located at 907 Palm Drive, Berrysburg, PA 17005. The name of his business is "By the Blade," and the taxpayer identification number is 959876556. Since you handle the bookkeeping for the business, you have printed the Income Statement from your accounting software. Travel costs are business related and do not include meals. The detail of the Meals and Entertainment Expenses account is as follows: RENTAL PROPERTY Greg and Danielle own a condo and use it as rental property. The address is 108 Oak Terrace, Unit B, Harrisburg, PA 17111. The unit was purchased for $82,500 in 2004 and no significant improvements have been made to the property. Greg provides the management services for the property including the selection of tenants, maintenance, repairs, rent collection, and other services as needed. He spends approximately 2 hours per week on rental activity, on average. The revenues and expenses for the year are as follows: Miscellaneous Deductions Greg and Danielle paid the following amounts during the year (by check): TAX DOCUMENTS The Miller family provided the following documents: Form N=2 Wage and Tax Statement Copy C-For EMPLOYEE'S RECORDS (See Notice to Employee on the back of Copy B.) Instructions for Recipient as periodic payments, nonperiodic payments, or a total distribution. Generally, distributions from retirement plans (IRAs, qualified plans, Report the amount on Form 1040, 1040-SR, or 1040-NR on the line section 403(b) plans, and governmental section 457(b) plans), for "IRA distributions" or "Pensions and annuities" (or the line for insurance contracts, etc., are reported to recipients on Form 1099-R. "Taxable amount") and on Form 8606, as applicable. However, if this Qualified plans and section 403(b) plans. If your annuity starting is a lump-sum distribution, see Form 4972 . If you haven't reached date is after 1997, you must use the simplified method to figure your minimum retirement age, report your disability payments on the line taxable amount if your payer didn't show the taxable amount in box for "Wages, salaries, tips, etc." on your tax return. Also report on that 2 a. See the instructions for your tax return. line permissible withdrawals from eligible automatic contribution IRAs. For distributions from a traditional individual retirement arrangements and corrective distributions of excess deferrals, excess arrangement (IRA), simplified employee pension (SEP), or savings contributions, or excess aggregate contributions except if the incentive match plan for employees (SIMPLE), generally the payer isn't distribution is of designated Roth contributions or your after-tax required to compute the taxable amount. See the instructions for your contributions or if you're self-employed. tax return to determine the taxable amount. If you're at least age 72 , If a life insurance, annuity, qualified long-term care, or endowment you must take minimum distributions from your IRA (other than a Roth contract was transferred tax free to another trustee or contract issuer. IRA). If you don't, you're subject to a 50% excise tax on the amount an amount will be shown in this box and code 6 will be shown in box that should've been distributed. See Pub. 590-A and Pub. 590-B for 7. If a charge or payment was made against the cash value of an more information on IRAs. annuity contract or the cash surrender value of a life insurance Roth IRAs. For distributions from a Roth IRA, generally the payer isn't contract for the purchase of qualified long-term care insurance, an required to compute the taxable amount. You must compute any amount will be shown in this box and code W will be shown in box 7. taxable amount on Form 8606. An amount shown in box 2a may be You need not report these amounts on your tax return. If code C is taxable earnings on an excess contribution. shown in box 7, the amount shown in box 1 is a receipt of reportable Loans treated as distributions. If you borrow money from a qualified death benefits that is taxable in part. plan, section 403 (b) plan, or governmental section 457 (b) plan, you may Box 2a. This part of the distribution is generally taxable. If there is no have to treat the loan as a distribution and include all or part of the amount borrowed in your income. There are exceptions to this rule. If the taxable amount. In that case, the first box in box 2b should be your loan is taxable, code L will be shown in box 7 . See Pub. 575 . checked. You may want to get one of the free publications from the IRS Recipient's taxpayer identification number (TIN). For your to help you figure the taxable amount. See Additional information on the protection, this form may show only the last four digits of your TIN_back of Copy 2. For an IRA distribution, see IRAs and Roth IRAs, earlier. (SSN, ITIN, ATIN, or EIN). However, the payer has reported your For a direct rollover, other than from a qualified plan, section 403 (b) complete TIN to the IRS. Account number. May show an account, policy, or other unique plan, or governmental section 457(b) plan to a designated Roth account number the payer assigned to distinguish your account. Box 1. Shows the total amount distributed this year. The amount may roll over a distribution (other than a distribution from a designated Roth have been a direct rollover, a transfer or conversion to a Roth IRA, a account) from a qualified plan, section 403(b) plan, or govemmental recharacterized IRA contribution; or you may have received it section 457(b) plan to a designated Roth account in the same plan or to (Continued on the back of Copy C) Instructions for Recipient (continued) Box 6. If you received a lump-sum distribution from a qualified plan a Roth IRA, you must include on the "Taxable amount" line of your tax that includes securities of the employer's company, the net unrealized return the amount shown in this box plus the amount in box 6, if any. appreciation (NUA) (any increase in value of such securities while in If this is a total distribution from a qualified plan and you were born the trust) is taxed only when you sell the securities unless you choose before January 2, 1936 (or you're the beneficiary of someone borm to include it in your gross income this year. See Pub. 575 and before January 2, 1936), you may be eligible for the 10-year tax Form 4972 . If you roll over the distribution to a designated Roth option. See the Form 4972 instructions for more information. account in the same plan or to a Roth IRA, see the instructions for box If you're an eligible retired public safety officer who elected to 2a. For a direct rollover to a designated Roth account in the same plan exclude from income distributions from your eligible plan used to pay or to a Roth IRA. the NUA is included in box 2a. If you didn't receive a certain insurance premiums, the amount shown in box 2 a hasn't been . lump-sum distribution, the amount shown is the NUA attributable to reduced by the exclusion amount. See the instructions for your tax employee contributions, which isn't taxed until you sell the securities. return for more information. Box 7. The following codes identify the distribution you received. For Box 2b. If the first box is checked, the payer was unable to determine more information on these distributions, see the instructions for your the taxable amount and box 2a should be blank, except for an IRA._. tax retum. Also, certain distributions may be subject to an additional It's your responsibility to determine the taxable amount. If the second 10% tax. See the Instructions for Form 5329 . box is checked, the distribution was a total distribution that closed out 1-Early distribution, no known exception (in most cases, under age your account. 591/2). Box 3. If you received a lump-sum distribution from a qualified plan 2-Early distribution, exception applies (under age 591/2). and were born before January 2, 1936 (or you're the beneficiary of 3-Disability. someone born before January 2, 1936), you may be able to elect to 4-Death. treat this amount as a capital gain on Form 4972 (not on Schedule D 5-Prohibited transaction. (Form 1040)). See the Form 4972 instructions. For a charitable gift 6-Section 1035 exchange (a tax-free exchange of life insurance, annuity, report as a long-term capital gain as explained in the annuity, qualified long-term care insurance, or endowment Instructions for Form 8949. contracts). Box 4. Shows federal income tax withheld. Include this amount on 7-Normal distribution. your income tax return as tax withheld, and if box 4 shows an amount 8-Excess contributions plus earnings/excess deferrals (and/or (other than zero), attach Copy B to your return. Generally, if you earnings) taxable in 2021. receive payments that aren't eligible rollover distributions, you can 9 Cost of current life insurance protection. change your with holding or elect not to have income tax withheld by A-May be eligible for 10-year tax option (see Form 4972). giving the payer Form W-4P. B-Designated Roth account distribution. Box 5. Generally, this shows the employee's investment in the Note: If code B is in box 7 and an amount is reported in box 11 , contract (after-tax contributions), if any, recovered tax free this year; see the instructions for Form 5329 . the portion that's your basis in a designated Roth account; the part of C-Reportable death benefits under section 6050Y. premiums paid on commercial annuities or insurance contracts D-Annuity payments from nonqualified annuities that may be subject recovered tax free; the nontaxable part of a charitable gift annuity; or to tax under section 1411. the investment in a life insurance contract reportable under section 6050Y. This box doesn't show any IRA contributions. If the amount E-Distributions under Employee Plans Compliance Resolution shown is your basis in a designated Roth account, the year you first System (EPCAS). made contributions to that account may be entered in box 11 . (Continued on the back of Copy 2) Instructions for Recipient (continued) were made for qualified long-term care insurance contracts under F-Charitable gitt annuity. combined arrangements, the amount of the reduction in the G-Direct rollover of a distribution to a qualified plan, a section 403(b) investment (but not below zero) in the annuity or life insurance plan, a governmental section 457(b) plan, or an IRA. Contract is reported here. H-Direct rollover of a designated Roth account distribution to a Roth Box 9a. If a total distribution was made to more than one person, the IRA. percentage you received is shown. J-Early distribution from a Roth IRA, no known exception (in most Box 9b. For a life annuity from a qualified plan or from a section cases, under age 59\%). 403(b) plan (with after-tax contributions), an amount may be shown for K-Distribution of traditional IRA assets not having a readily available the employee's total investment in the contract. It is used to compute FMV. the taxable part of the distribution. See Pub. 575. L-Loans treated as distributions. Box 10. If an amount is reported in this box, see the Instructions for M-Qualfied plan loan offset. Form 5329 and Pub. 575 , N-Recharacterized IRA contribution made for 2021 and Box 11. The first year you made a contribution to the designated Roth recharacterized in 2021 . - account reported on this form is shown in this box. P-Excess contributions plus earnings/excess deferrals (and/or Box 12. If checked, the payer is reporting on this Form 1099 to satisty earnings) taxable in 2020 . its Internal Revenue Code chapter 4 account reporting requirement Q-Qualified distribution from a Roth IRA. under FATCA. You may also have a fliling requirement. See the R-Recharacterized IRA contribution made for 2020 and Instructions for Form 8938. recharacterized in 2021. Box 13. Shows the date of payment for reportable death benefits S-Early distribution from a SiMPLE IRA in first 2 years, no known under section 6050Y, exception (under age 591/2). Boxes 14-19. If state or local income tax was withheld from the T-Roth IRA distribution, exception applies. distribution, boxes 16 and 19 may show the part of the distribution U-Dividend distribution from ESOP under section 404(k). subject to state and/or local tax. Note:Thisdistributionisnteligibleforrollover.W-Chargesorpaymentsforpurchasingqualifiedlong-termcareAdditionalinformation.Youmaywanttosee:FormW-4P,Form4972,Form5329,Form8606 insurance contracts under combined arrangements. Pub. 525, Taxable and Nontaxable Income IRA, SEP, or SIMPLE distribution. Box 8. If you received an annuity contract as part of a distribution, the Pub. 571, Tax-Sheltered Annuity Plans value of the contract is shown. It isn't taxable when you receive it and Pub. 575, Pension and Annuity Income shouldn't be included in boxes 1 and 2 a. When you receive periodic. Pub. 590-A, Contributions to IRAs payments from the annuity contract, they're taxable at that time. If the Pub. 590-B, Distributions from IRAs distribution is made to more than one person, the percentage of the Pub. 721, U.S. Civil Service Retirement Benefits annuity contract distributed to you is also shown. You'll need this Pub. 939, General Rule for Pensions and Annuities information if you use the 10-year tax option (Form 4972). If charges Pub. 969, HSAs and Other Tax-Favored Health Plans Instructions for Recipient The information provided may be different for covered and noncovered securities. For a description of covered securities, see the Instructions for and Treasury notes. This may or may not all be taxable. See Pub. 550 . This Form 8949. For a taxable covered security acquired at a premium, unless you interest is exempt from state and local income taxes. This interest is not 1.6045-1(n)(5) that you did not want to amortize the premium under section 171, acquired at a premium. or for a tax-exempt covered security acquired at a premium, your payer must box 4. Shows backup withholding. Generally, a payer must backup withhold if generally report either (1) a net amount of interest that reflects the offset of the you did not furnish your TIN or you did not furnish the correct TIN to the payer. amount of interest paid to you by the amount of premium amortization allocable See Form W-9. Include this amount on your income tax return as tax withheld. to the payment(s), or (2) a gross amount for both the interest paid to you and the Box 5 . Any amount shown is your share of investment expenses of a singlepremium amortization allocable to the payment(s). If you did notify your payer class REMIC. This amount is included in box 1 . Note: This amount is not that you did not want to amortize the premium on a taxable covered security, cleductible. then your payer will only report the gross amount of interest paid to you. For a the gross amount of interest paid to you. or a credit on your Form 1040 or 1040-SR. See your tax return instructions. Recipient's taxpayer identification number (TIN). For your protection, this Box 7. Shows the country or U.S. possession to which the foreign tax was paid. form may show only the last four digits of your TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer Box 8 . Shows tax-exempt interest paid to you during the calendar year by the how to report this amount in the Instructions for Form 1040. This identification number (ATIN), or employer identification number (EIN)). However, amount may be subject to backup withholding. See Box 4 above. See the the issuer has reported your complete TIN to the IRS. instructions above for a tax-exempt covered security acquired at a premium. FATCA filing requirement. If the FATCA filing requirement box is checked, the Box 9 . Shows tax-exempt interest subject to the alternative minimum tax. This payer is reporting on this Form 1099 to satisfy its chapter 4 account reporting amount is included in box 8 . See the Instructions for Form 6251 . See the requirement. You may also have a filing requirement. See the Instructions for instructions above for a tax-exempt covered security acquired at a premium. Form 8938. Box 10. For a taxable or tax-exempt covered security, if you made an election Account number. May show an account or other unique number the payer under section 1278 (b) to include market discount in income as it accrues and assigned to distinguish your account. Box 1. Shows taxable interest paid to you during the calendar year by the payer. section 1.6045-1(n)(5), shows the market discount that accrued on the debt This does not include interest shown in box 3. May also show the total amount instrument during the year while held by you, unless it was reported on Form of the credits from clean renewable energy bonds, new clean renewable energy 1099-OID. For a taxable or tax-exempt covered security acquired on or after bonds, qualified energy conservation bonds, qualified zone academy bonds, January 1, 2015, accrued market discount will be calculated on a constant yield qualified school construction bonds, and build America bonds that must be basis unless you notified your payer in writing in accordance with included in your interest income. These amounts were treated as paid to you section 1.60451(n)(5) that you did not want to make a constant yield election for during the calendar year on the credit allowance dates (March 15, June 15, market discount under section 1276(b). Report the accrued market discount on September 15, and December 15). For more information, see Form 8912. See your income tax return as directed in the Instructions for Form 1040. Market the instructions above for a taxable covered security acquired at a premium. discount on a tax-exempt security is includible in taxable income as interest Box 2. Shows interest or principal forfeited because of early withdrawal of time income. savings. You may deduct this amount to figure your adjusted gross income on your income tax return. See the Instructions for Form 1040 to see where to take (Continued on the back of Copy 2.) the deduction. Instructions for Recipient (continued) Box 11. For a taxable covered security (other than a U.S. Treasury Box 13. For a tax-exempt covered security, shows the amount of the interest payment(s), unless you notified the payer in writing in amount is reported in this box, see Pub. 550 to determine the net want to amortize bond premium under section 171. If an amount is If an amount is not reported in this box for a tax-exempt covered reported in this box, see the Instructions for Schedule B (Form 1040) security acquired at a premium, the payer has reported a net amount to determine the net amount of interest includible in income on Form of in box 1040 or 1040 -SR with respect to the security. If an amount is not 13 is greater than the amount of interest paid on the tax-exempt reported in this box for a taxable covered security acquired at a covered security, the excess is a nondeductible loss. See Regulations premium and the payer is reporting premium amortization, the payer section 1.171-2(a)(4)(ii). has reported a net amount of interest in box 1. If the amount in box 11 Box 14. Shows CUSIP number(s) for tax-exempt bond(s) on which is greater than the amount of interest paid on the covered security, tax-exempt interest was paid, or tax credit bond(s) on which taxable see Regulations section 1.171-2(a)(4). Box 12. For a U.S. Treasury obligation that is a covered security, year. If blank, no CUSIP number was issued for the bond(s). shows the amount of premium amortization allocable to the interest Boxes 15-17. State tax withheld reporting boxes. payment(s), unless you notified the payer in writing in accordance with Regulations section 1.60451(n)(5) that you did not want to amortize Nominees. If this form includes amounts belonging to another Regulations section 1.6045-1(n)(5) that you did not want to amortize see the Instructions for Schedule B (Form 1040) to determine the net Form 1099-INT for each of the other owners showing the income amount of interest includible in income on Form 1040 or 1040-SR with allocable to each. File Copy A of the form with the IRS. Furnish Copy respect to the U.S. Treasury obligation. If an amount is not reported in B to each owner. List yourself as the "payer" and the other owner(s) this box for a U.S. Treasury obligation that is a covered security as the "recipient." File Form(s) 1099-INT with Form 1096 with the acquired at a premium and the payer is reporting premium Internal Revenue Service Center for your area. On Fist amortization, the payer has reported a net amount of interest in box 3 . yourself as the "filer." A spouse is not required to file a nominee return If the amount in box 12 is greater than the amount of interest paid on to show amounts owned by the other spouse. related to Form 1099-INT and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form 1099INT. Free File Program. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online federal tax preparation, e-filing, and direct deposit or payment options. VOID CORRECTED Www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service VOID CORRECTED Form 1099-DIV Www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service Instructions for Recipient Box 2f. Shows the portion of the amount in box 2a that is section 897 gain Recipient's taxpayer identification number (TIN). For your protection, this attributable to disposition of USRPI. form may show only the last four digits of your TIN (SSN, ITIN, ATIN, or EIN). However, the issuer has reported your complete TIN to the IRS. Note: Boxes 2e and 2f apply only to foreign persons and entities whose income FATCA filing requirement. If the FATCA filing requirement box is checked, the indirect foreign owners or beneficiaries. It is generally treated as effectively payer is reporting on this Form 1099 to satisfy its account reporting requirement connected to a trade or business within the United States. See the instructions under chapter 4 of the Internal Revenue Code. You may also have a filing requirement. See the Instructions for Form 8938. assigned to distinguish your account. received in excess of your basis is taxable to you as capital gain. See Pub. 550 . Box 1a. Shows total ordinary dividends that are taxable. Include this amount on box 4 . Shows backup withholding. A payer must backup withhold on certain the "Ordinary dividends" line of Form 1040 or 1040-SR. Also report it on payments if you did not give your TIN to the payer. See Form Schedule B (Form 1040), if required. information on backup withholding. Include this amount on your income tax Box 1b. Shows the portion of the amount in box 1a that may be eligible for return as tax withheld. reduced capital gains rates. See the Instructions for Forms 1040 and 1040-SR Box . Shows the portion of the amount in box 1a that may be eligible for the for how to determine this amount and where to report. 1040 and 1040-SR 20% qualified business income deduction under instructions for Form 8995 and Form 8995 -A. The amount shown may be dividends a corporation paid directly to you as a Box 6 . Shows your share of expenses of a nonpublicly offered RIC, generally a participant (or beneficiary of a participant) in an employee stock ownership plan Box 2a. Shows total capital gain distributions from a regulated investment credit on Form 1040 or 1040 -SR. See the Instructions for Forms 1040 and 1040 Box 2a. Shows total capital gain distributions from a regulated investment company (RIC) or real estate investment trust (REIT). See How To Report in the Instructions for Schedule D (Form 1040). But, if no amount is shown in boxes box 8 . This box should be left blank if a RIC reported the foreign tax shown in 2b,2c,2d, and 2f and your only capital gains and losses are capital gain box 7. Form 1040 or 1040-SR rather than Schedule D. See the Instructions for Forms Box 11. Shows exempt-interest dividends from a mutual fund or other RIC paid 1040 and 1040-SR. to you during the calendar year. See the Instructions for Forms 1040 and 1040 1250 gain from certain depreciable real property. See the Unrecaptured Section Box 4 above. 1250GainWorksheetintheInstructionsforScheduleD(Form1040).Box2c.Showstheportionoftheamountinbox2athatissection1202gainBox12.Showsexempt-interestdividendssubjecttothealternativeminimumtax.Thisamountisincludedinbox11.SeetheInstructionsforForm6251. from certain small business stock that may be subject to an exclusion. See the boxes 13-15. State income tax withheld reporting boxes. Schedule D (Form 1040) instructions. Box 2d. Shows the portion of the amount in box 2a that is 28% rate gain from considered a nominee recipient. You must file Form 1099-DIV (with a Form sales or exchanges of collectibles. If required, use this amount when completing 1096 ) with the IRS for each of the other owners to show their share of the the 28\% Rate Gain Worksheet in the Instructions for Schedule D (Form 1040). income, and you must furnish a Form 1099-DIV to each. A spouse is not Box 2e. Shows the portion of the amount in box la that is section 897 gain required to file a nominee return to show amounts owned be the other spouse. attributable to disposition of U.S. real property interests (USRPI). See the 2021 General Instructions for Certain Information Returns. CORRECTED (if checked) CORRECTED (if checked) Instructions for Recipient Brokers and barter exchanges must report proceeds from (and in some Box 1b. This box may be blank if box 5 is checked or if the securities cases, basis for) transactions to you and the IRS on Form 1099-B. Sold were acquired on a varlety of dates. For short sales, the date Reporting is also required when your broker knows or has reason to shown is the date you acquired the security delivered to close the know that a corporation in which you own stock has had a reportable short sale. change in control or capital structure. You may be required to recognize gain from the recelpt of cash, stock, or other property that Box 1c. Shows the trade date of the sale or exchange. For short was exchanged for the corporation's stock. If your broker reported this the short sale. For aggregate reporting in boxes 8 through 11 , no entry type of transaction to you, the corporation is identified in box 1a. will be present. Recipient's taxpayer identification number (TIN). For your protection, this form may show only the last four digits of your TIN Box 1d. Shows the cash proceeds, reduced by any commissions or (social security number (SSN), indlvidual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or transfer taxes related to the sale, for transactions involving stocks, employer identification number (EIN)). However, the issuer has debt, commodities, forward contracts, non-Section 1256 option reported your complete TIN to the IAS. contracts, or securities futures contracts. May show the proceeds from the disposition of your interest(s) in a widely held fixed investment Account number. May show an account or other unique number the value of any stock or other property recelved in a reportable change in payer assigned to distinguish your account. control or capital structure arising from the corporate transfer of CUSIP number. Shows the CUSIP (Committee on Unitorm Security property to a foreign corporation. Losses on forward contracts or nonIdentification Procedures) number or other applicable identifying Section 1256 option contracts are shown in parentheses. This box number. does not include proceeds from regulated futures contracts or Section FATCA filing requirement. If the FATCA filing requirement box is checked, the payer is reporting on this Form 1099 to satisty its 1256 option contracts. Report this amount on Form 8949 or on Schedule D (Form 1040) (whichever is applicable) as explained in the chapter 4 account reporting requirement. You may also have a filing Instructions for Schedule D (Form 1040). requirement. See the Instructions for Form 8938. Box 1e. Shows the cost or other basis of securities sold. It the Applicable checkbox on Form 8949. Indicates where to report this securities were acquired through the exercise of a noncompensatory transaction on Form 8949 and Schedule D (Form 1040), and which checkbox is applicable. See the instructions for your Schedule D option granted or acquired on or after January 1, 2014, the basis has (Form 1040) and/or Form 8949. been adjusted to reflect your option premium. If the securities were acquired through the exercise of a noncompensatory option granted Box 1a. Shows a brief description of the item or service for which or acquired before January 1, 2014, your broker is permitted, but not amounts are being reported. For regulated futures contracts and required, to adjust the basis to reflect your option premium. If the securities were acquired through the exercise of a compensatory shown. For Section 1256 option contracts, "Section 1256 option" or to the option that was reported to you on a Form W-2. If box 5 is other appropriate description may be shown. For a corporation that checked, box 10 may be blank. See the Instructions for Form 8949 , had a reportable change in control or capital structure, this box may the Instructions for Schedule D (Form 1040), or Pub. 550 for detalls. show the class of stock as C (common), P (preterred), or O (other). (Continued on the back of Copy 2.) Instructions for Recipient (continued) structure reported in box 1d. See the Form 8949 and Schedule D Box 1f. Shows the amount of accrued market discount. For detalls on (Form 1040) Instructions. The broker should advise you of any losses market discount, see the Schedule D (Form 1040) instructions, the Instructions for Form 8949, and Pub. 550. If box 5 is checked, box if Regulated Futures Contracts, Foreign Currency Contracts, and may be blank. Box 1g. Shows the amount of nondeductible loss in a wash sale Section 1256 Option Contracts (Boxes 8 Through 11) transaction. For details on wash sales, see the Schedule D (Form Box 8. Shows the profit or (loss) realized on regulated futures, foreign 1040) instructions, the Instructions for Form 8949, and Pub. 550. If currency, or Section 1256 option contracts closed during 2021. box 5 is checked, box 1g may be blank. Box 9. Shows any year-end adjustment to the profit or (loss) shown in Box 2 . The short-term and long-term boxes pertain to short-term gain box 8 due to open contracts on December 31, 2020. or loss and long-term gain or loss. If the "Ordinary" box is checked, Box 10. Shows the unrealized profit or (loss) on open contracts held in your security may be subject to special rules. For example, gain on a contingent payment debt instrument subject to the noncontingent your account on December 31, 2021. These are considered closed bond method is generally treated as ordinary interest income rather out as of that date. This will become an adjustment reported as thanascapitalgain.SeetheInstructionsforForm8949,Pub.550,orPub.1212formoredetailsonwhetherthereareanyspecialrulesorBox11.Boxes8,9,and10areallusedtofiguretheaggregateprofitor(loss)onregulatedfutures,foreigncurrency,orSection1256option unrealized profit or (loss) on open contracts-12/31/2021 in 2022. adjustments that might apply to your security. If box 5 is checked, box contracts for the year. Include this amount on your 2021 Form 6781. 2 may be blank. Box 3 . If checked, proceeds are from a transaction involving collectibles or from a Qualified Opportunity Fund (QOF). and elther the short-term or the long-term gain or loss box in box 2 Box 4. Shows backup withholding. Generally, a payer must backup will be checked. If box 12 is checked on Form(s) 1099B and NO withhold if you did not furnish your TIN to the payer. See Form W-9 for 1040) as you may be able to report your transaction directly on Information on backup withholding. Include this amount on your schedule D (Form 1040). If the "Ordinary" box in box 2 is checked, an income tax return as tax withheld. adjustment may be required. Box 5. If checked, the securitles sold were noncovered securities and Box 13. Shows the cash you recelved, the fair market value of any boxes 1b, 1e, 1f, 1g, and 2 may be blank. Generally, a noncovered property or services you recelved, and the fair market value of any security means: stock purchased before 2011, stock in most mutual trade credits or scrip credited to your account by a barter exchange. funds purchased before 2012, stock purchased in or transferred to a See Pub. 525. dividend reinvestment plan before 2012, debt acquired before 2014, Boxes 14-16. Show state(s)/local income tax information. options granted or acquired before 2014, and securities futures contracts entered into before 2014. Future developments. For the latest information about any Box 6. If the exercise of a noncompensatory option resulted in a sale developments related to Form 1099-B and its instructil of a security, a checked "net proceeds" box indicates whether the ww. legislation enacted after ther amount in box 1d was adjusted for option premium. Box 7. If checked, you cannot take a loss on your tax return based on FreeFlle. Go to www. Irs. gov/Freeflle to see if you qualify for no-cost gross proceeds from a reportable change in control or capital online federal tax preparation, e-filing, and direct deposit or payment options. Instructions for Payer/Borrower A person (including a financial institution, a governmental unit, and a cooperative Box 2. Shows the outstanding principal on the mortgage as of January 1, 2021. housing corporation) who is engaged in a trade or business and, in the course of If the mortgage originated in 2021 , shows the mortgage principal as of the date such trade or business, received from you at least $600 of mortgage interest of origination. If the recipient/lender acquired the loan in 2021 , shows the (including certain points) on any one mortgage in the calendar year must furnish mortgage principal as of the date of acquisition. this statement to you. If you received this statement as the payer of record on a mortgage on which Box 3. Shows the date of the mortgage origination. there are other borrowers, furnish each of the other borrowers with information Box 4. Do not deduct this amount. It is a refund (or credit) for overpayment(s) about the proper distribution of amounts reported on this form. Each borrower is of interest you made in a prior year or years. If you itemized deductions in the entitled to deduct only the amount he or she paid and points paid by the seller year(s) you paid the interest, you may have to include part or all of the box 4 that represent his or her share of the amount allowable as a deduction. Each amount on the "Other income" line of your 2021 Schedule 1 (Form 1040). No borrower may have to include in income a share of any amount reported in box 4. adjustment to your prior year(s) tax return(s) is necessary. For more information, If your mortgage payments were subsidized by a government agency, you may not be able to deduct the amount of the subsidy. See the instructions for Box 5. If an amount is reported in this box, it may qualify to be treated as Schedule A, C, or E (Form 1040) for how to report the mortgage interest. Also, and Pub. 936. for more information, see Pub. 936 and Pub. 535. Payer's/Borrower's taxpayer identification number (TIN). For your protection, Box . Not all points are reportable to you. Box 6 shows points you or the seller this form may show only the last four digits of your TIN (SSN, ITIN, ATIN, or EIN). paid this year for the purchase of your principal residence that are required to be reported to you. Generally, these points are fully deductible in the year paid, but Account number. May show an account or other unique number the lender has points not reported in box 6 may also be deductible. See Pub. 936 to figure the assigned to distinguish your account. Box 1. Shows the mortgage interest received by the recipient/lender during the Box 7. If the address of the property securing the mortgage is the same as year. This amount includes interest on any obligation secured by real property, the payer's/borrower's, either the box has been checked, or box 8 has been including a mortgage, home equity loan, or line of credit. This amount does not completed. include points, government subsidy payments, or seller payments on a "buydown" mortgage. Such amounts are deductible by you only in certain Box 8. Shows the address or description of the property securing the mortgage. circumstances. Box 9 . If more than one property secures the loan, shows the number of properties If you prepaid interest in 2021 that accrued in full by January 15,_ securing the mortgage. If only one property secures the loan, this box may be 2022, this prepaid interest may be included in box 1 . However, you blank. cannot deduct the prepaid amount in 2021 even though it may be Box 10. The interest recipient may use this box to give you other information, included in box 1. such as real estate taxes or insurance paid from escrow. Box 11. If the recipient/lender acquired the mortgage in 2021, shows the date of If you hold a mortgage credit certificate and can claim the mortgage interest_ acquisition. credit, see Form 8396. If the interest was paid on a mortgage, home equity loan, Future developments. For the latest information about developments related to or line of credit secured by a qualified residence, you can only deduct the interest paid on acquisition indebtedness, and you may be subject to a Form 1098 and its instructions, such as legislation enacted after they were deduction limitation. published, go to www.irs. gov/Form 1098. FreeFile. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online federal tax preparation, e-filing, and direct deposit or payment options. BY THE BLADE 95-9876556 INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 Revenue: Cost of Goods Sold: Beginning Inventory Add: Purchases Less: Ending Inventory \$ 10,250 Cost of Goods Sold Gross Profit 81,10062.400 Expenses: Dues \& Subscriptions Estimated Federal Tax Payments Estimated State Tax Payments Insurance Meals \& Entertainment 72,40062.150 PayrollTaxesProfessionalFees1,4003,830 Professional Fees 1,710 SuppliesTravel1,7108,420 Travel 1,230 Total Expenses 58,200 Net Operating Income $22,900 Greg \& Danielle Miller 55 Cedar Crest Lane Berrysburg, PA 17005 Dear Greg \& Danielle, Thank you for a great 2021 at Grow Up! We appreciate your patronage during the year and hope to continue to provide excellent service for Paige in 2022 . We have provided the tax information for calendar year 2021 below. Please let us know if you need any additional information. Sincerely, Natasha oterling Natasha Sterling Executive Director, Grow Up Day Care Center EIN: 54-0983456 The Rock Church 1 Church Street Berrysburg, PA 17005 January 26, 2022 Dear Mr. \& Mrs. Miller, On behalf of The Rock Church, I thank you for your generosity and support of our parish. I realize the sacrifices that you have made, and please know it is greatly appreciated! May God bless you and your family in a special way. If you made any pledge or any gift to our Debt Campaign, this statement reflects only the payments received during 2021. Any gift you may have made to the Diocesan Lenten Appeal is not included on this statement. You will receive a statement directly from the Diocese of Harrisburg for your Lenten Appeal contribution. Our records show that you have contributed the following amounts. Please retain this statement for income tax purposes. Thank you again for your past support. Your continued contributions are greatly appreciated! With warm affection and prayers, Tax Return Project ACCTG 310 In this scenario, you will practice entering the following: - Form W-2 income - Retirement income reported on Form 1099-R - Income reported on Forms 1099-INT and 1099-DIV - Sale of stock reported on Form 1099-B - Business income and expenses - Rental property Instructions SCENARIO INFORMATION This practice return will help you become more familiar with individual return preparation. Use the Greg and Danielle Miller live with their children in scenario information and the attached source_ Berrysburg, PA. Both enjoy good health and eyesight. documents to complete the 2021 Federal Form 1040 Greg owns and operates a landscaping business and and all schedules necessary which may include: during winter months, when business is slow, he works as a substitute teacher. Danielle is a firefighter for the City of Harrisburg and is retired from the United States Army. Forms may be obtained at www.irs.gov. For any information not provided, please use reasonable assumptions. Attached Source Documents Address: 55 Cedar Crest Lane, Berrysburg, PA 17005 INCOME Greg's landscaping business is located at 907 Palm Drive, Berrysburg, PA 17005. The name of his business is "By the Blade," and the taxpayer identification number is 959876556. Since you handle the bookkeeping for the business, you have printed the Income Statement from your accounting software. Travel costs are business related and do not include meals. The detail of the Meals and Entertainment Expenses account is as follows: RENTAL PROPERTY Greg and Danielle own a condo and use it as rental property. The address is 108 Oak Terrace, Unit B, Harrisburg, PA 17111. The unit was purchased for $82,500 in 2004 and no significant improvements have been made to the property. Greg provides the management services for the property including the selection of tenants, maintenance, repairs, rent collection, and other services as needed. He spends approximately 2 hours per week on rental activity, on average. The revenues and expenses for the year are as follows: Miscellaneous Deductions Greg and Danielle paid the following amounts during the year (by check): TAX DOCUMENTS The Miller family provided the following documents: Form N=2 Wage and Tax Statement Copy C-For EMPLOYEE'S RECORDS (See Notice to Employee on the back of Copy B.) Instructions for Recipient as periodic payments, nonperiodic payments, or a total distribution. Generally, distributions from retirement plans (IRAs, qualified plans, Report the amount on Form 1040, 1040-SR, or 1040-NR on the line section 403(b) plans, and governmental section 457(b) plans), for "IRA distributions" or "Pensions and annuities" (or the line for insurance contracts, etc., are reported to recipients on Form 1099-R. "Taxable amount") and on Form 8606, as applicable. However, if this Qualified plans and section 403(b) plans. If your annuity starting is a lump-sum distribution, see Form 4972 . If you haven't reached date is after 1997, you must use the simplified method to figure your minimum retirement age, report your disability payments on the line taxable amount if your payer didn't show the taxable amount in box for "Wages, salaries, tips, etc." on your tax return. Also report on that 2 a. See the instructions for your tax return. line permissible withdrawals from eligible automatic contribution IRAs. For distributions from a traditional individual retirement arrangements and corrective distributions of excess deferrals, excess arrangement (IRA), simplified employee pension (SEP), or savings contributions, or excess aggregate contributions except if the incentive match plan for employees (SIMPLE), generally the payer isn't distribution is of designated Roth contributions or your after-tax required to compute the taxable amount. See the instructions for your contributions or if you're self-employed. tax return to determine the taxable amount. If you're at least age 72 , If a life insurance, annuity, qualified long-term care, or endowment you must take minimum distributions from your IRA (other than a Roth contract was transferred tax free to another trustee or contract issuer. IRA). If you don't, you're subject to a 50% excise tax on the amount an amount will be shown in this box and code 6 will be shown in box that should've been distributed. See Pub. 590-A and Pub. 590-B for 7. If a charge or payment was made against the cash value of an more information on IRAs. annuity contract or the cash surrender value of a life insurance Roth IRAs. For distributions from a Roth IRA, generally the payer isn't contract for the purchase of qualified long-term care insurance, an required to compute the taxable amount. You must compute any amount will be shown in this box and code W will be shown in box 7. taxable amount on Form 8606. An amount shown in box 2a may be You need not report these amounts on your tax return. If code C is taxable earnings on an excess contribution. shown in box 7, the amount shown in box 1 is a receipt of reportable Loans treated as distributions. If you borrow money from a qualified death benefits that is taxable in part. plan, section 403 (b) plan, or governmental section 457 (b) plan, you may Box 2a. This part of the distribution is generally taxable. If there is no have to treat the loan as a distribution and include all or part of the amount borrowed in your income. There are exceptions to this rule. If the taxable amount. In that case, the first box in box 2b should be your loan is taxable, code L will be shown in box 7 . See Pub. 575 . checked. You may want to get one of the free publications from the IRS Recipient's taxpayer identification number (TIN). For your to help you figure the taxable amount. See Additional information on the protection, this form may show only the last four digits of your TIN_back of Copy 2. For an IRA distribution, see IRAs and Roth IRAs, earlier. (SSN, ITIN, ATIN, or EIN). However, the payer has reported your For a direct rollover, other than from a qualified plan, section 403 (b) complete TIN to the IRS. Account number. May show an account, policy, or other unique plan, or governmental section 457(b) plan to a designated Roth account number the payer assigned to distinguish your account. Box 1. Shows the total amount distributed this year. The amount may roll over a distribution (other than a distribution from a designated Roth have been a direct rollover, a transfer or conversion to a Roth IRA, a account) from a qualified plan, section 403(b) plan, or govemmental recharacterized IRA contribution; or you may have received it section 457(b) plan to a designated Roth account in the same plan or to (Continued on the back of Copy C) Instructions for Recipient (continued) Box 6. If you received a lump-sum distribution from a qualified plan a Roth IRA, you must include on the "Taxable amount" line of your tax that includes securities of the employer's company, the net unrealized return the amount shown in this box plus the amount in box 6, if any. appreciation (NUA) (any increase in value of such securities while in If this is a total distribution from a qualified plan and you were born the trust) is taxed only when you sell the securities unless you choose before January 2, 1936 (or you're the beneficiary of someone borm to include it in your gross income this year. See Pub. 575 and before January 2, 1936), you may be eligible for the 10-year tax Form 4972 . If you roll over the distribution to a designated Roth option. See the Form 4972 instructions for more information. account in the same plan or to a Roth IRA, see the instructions for box If you're an eligible retired public safety officer who elected to 2a. For a direct rollover to a designated Roth account in the same plan exclude from income distributions from your eligible plan used to pay or to a Roth IRA. the NUA is included in box 2a. If you didn't receive a certain insurance premiums, the amount shown in box 2 a hasn't been . lump-sum distribution, the amount shown is the NUA attributable to reduced by the exclusion amount. See the instructions for your tax employee contributions, which isn't taxed until you sell the securities. return for more information. Box 7. The following codes identify the distribution you received. For Box 2b. If the first box is checked, the payer was unable to determine more information on these distributions, see the instructions for your the taxable amount and box 2a should be blank, except for an IRA._. tax retum. Also, certain distributions may be subject to an additional It's your responsibility to determine the taxable amount. If the second 10% tax. See the Instructions for Form 5329 . box is checked, the distribution was a total distribution that closed out 1-Early distribution, no known exception (in most cases, under age your account. 591/2). Box 3. If you received a lump-sum distribution from a qualified plan 2-Early distribution, exception applies (under age 591/2). and were born before January 2, 1936 (or you're the beneficiary of 3-Disability. someone born before January 2, 1936), you may be able to elect to 4-Death. treat this amount as a capital gain on Form 4972 (not on Schedule D 5-Prohibited transaction. (Form 1040)). See the Form 4972 instructions. For a charitable gift 6-Section 1035 exchange (a tax-free exchange of life insurance, annuity, report as a long-term capital gain as explained in the annuity, qualified long-term care insurance, or endowment Instructions for Form 8949. contracts). Box 4. Shows federal income tax withheld. Include this amount on 7-Normal distribution. your income tax return as tax withheld, and if box 4 shows an amount 8-Excess contributions plus earnings/excess deferrals (and/or (other than zero), attach Copy B to your return. Generally, if you earnings) taxable in 2021. receive payments that aren't eligible rollover distributions, you can 9 Cost of current life insurance protection. change your with holding or elect not to have income tax withheld by A-May be eligible for 10-year tax option (see Form 4972). giving the payer Form W-4P. B-Designated Roth account distribution. Box 5. Generally, this shows the employee's investment in the Note: If code B is in box 7 and an amount is reported in box 11 , contract (after-tax contributions), if any, recovered tax free this year; see the instructions for Form 5329 . the portion that's your basis in a designated Roth account; the part of C-Reportable death benefits under section 6050Y. premiums paid on commercial annuities or insurance contracts D-Annuity payments from nonqualified annuities that may be subject recovered tax free; the nontaxable part of a charitable gift annuity; or to tax under section 1411. the investment in a life insurance contract reportable under section 6050Y. This box doesn't show any IRA contributions. If the amount E-Distributions under Employee Plans Compliance Resolution shown is your basis in a designated Roth account, the year you first System (EPCAS). made contributions to that account may be entered in box 11 . (Continued on the back of Copy 2) Instructions for Recipient (continued) were made for qualified long-term care insurance contracts under F-Charitable gitt annuity. combined arrangements, the amount of the reduction in the G-Direct rollover of a distribution to a qualified plan, a section 403(b) investment (but not below zero) in the annuity or life insurance plan, a governmental section 457(b) plan, or an IRA. Contract is reported here. H-Direct rollover of a designated Roth account distribution to a Roth Box 9a. If a total distribution was made to more than one person, the IRA. percentage you received is shown. J-Early distribution from a Roth IRA, no known exception (in most Box 9b. For a life annuity from a qualified plan or from a section cases, under age 59\%). 403(b) plan (with after-tax contributions), an amount may be shown for K-Distribution of traditional IRA assets not having a readily available the employee's total investment in the contract. It is used to compute FMV. the taxable part of the distribution. See Pub. 575. L-Loans treated as distributions. Box 10. If an amount is reported in this box, see the Instructions for M-Qualfied plan loan offset. Form 5329 and Pub. 575 , N-Recharacterized IRA contribution made for 2021 and Box 11. The first year you made a contribution to the designated Roth recharacterized in 2021 . - account reported on this form is shown in this box. P-Excess contributions plus earnings/excess deferrals (and/or Box 12. If checked, the payer is reporting on this Form 1099 to satisty earnings) taxable in 2020 . its Internal Revenue Code chapter 4 account reporting requirement Q-Qualified distribution from a Roth IRA. under FATCA. You may also have a fliling requirement. See the R-Recharacterized IRA contribution made for 2020 and Instructions for Form 8938. recharacterized in 2021. Box 13. Shows the date of payment for reportable death benefits S-Early distribution from a SiMPLE IRA in first 2 years, no known under section 6050Y, exception (under age 591/2). Boxes 14-19. If state or local income tax was withheld from the T-Roth IRA distribution, exception applies. distribution, boxes 16 and 19 may show the part of the distribution U-Dividend distribution from ESOP under section 404(k). subject to state and/or local tax. Note:Thisdistributionisnteligibleforrollover.W-Chargesorpaymentsforpurchasingqualifiedlong-termcareAdditionalinformation.Youmaywanttosee:FormW-4P,Form4972,Form5329,Form8606 insurance contracts under combined arrangements. Pub. 525, Taxable and Nontaxable Income IRA, SEP, or SIMPLE distribution. Box 8. If you received an annuity contract as part of a distribution, the Pub. 571, Tax-Sheltered Annuity Plans value of the contract is shown. It isn't taxable when you receive it and Pub. 575, Pension and Annuity Income shouldn't be included in boxes 1 and 2 a. When you receive periodic. Pub. 590-A, Contributions to IRAs payments from the annuity contract, they're taxable at that time. If the Pub. 590-B, Distributions from IRAs distribution is made to more than one person, the percentage of the Pub. 721, U.S. Civil Service Retirement Benefits annuity contract distributed to you is also shown. You'll need this Pub. 939, General Rule for Pensions and Annuities information if you use the 10-year tax option (Form 4972). If charges Pub. 969, HSAs and Other Tax-Favored Health Plans Instructions for Recipient The information provided may be different for covered and noncovered securities. For a description of covered securities, see the Instructions for and Treasury notes. This may or may not all be taxable. See Pub. 550 . This Form 8949. For a taxable covered security acquired at a premium, unless you interest is exempt from state and local income taxes. This interest is not 1.6045-1(n)(5) that you did not want to amortize the premium under section 171, acquired at a premium. or for a tax-exempt covered security acquired at a premium, your payer must box 4. Shows backup withholding. Generally, a payer must backup withhold if generally report either (1) a net amount of interest that reflects the offset of the you did not furnish your TIN or you did not furnish the correct TIN to the payer. amount of interest paid to you by the amount of premium amortization allocable See Form W-9. Include this amount on your income tax return as tax withheld. to the payment(s), or (2) a gross amount for both the interest paid to you and the Box 5 . Any amount shown is your share of investment expenses of a singlepremium amortization allocable to the payment(s). If you did notify your payer class REMIC. This amount is included in box 1 . Note: This amount is not that you did not want to amortize the premium on a taxable covered security, cleductible. then your payer will only report the gross amount of interest paid to you. For a the gross amount of interest paid to you. or a credit on your Form 1040 or 1040-SR. See your tax return instructions. Recipient's taxpayer identification number (TIN). For your protection, this Box 7. Shows the country or U.S. possession to which the foreign tax was paid. form may show only the last four digits of your TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer Box 8 . Shows tax-exempt interest paid to you during the calendar year by the how to report this amount in the Instructions for Form 1040. This identification number (ATIN), or employer identification number (EIN)). However, amount may be subject to backup withholding. See Box 4 above. See the the issuer has reported your complete TIN to the IRS. instructions above for a tax-exempt covered security acquired at a premium. FATCA filing requirement. If the FATCA filing requirement box is checked, the Box 9 . Shows tax-exempt interest subject to the alternative minimum tax. This payer is reporting on this Form 1099 to satisfy its chapter 4 account reporting amount is included in box 8 . See the Instructions for Form 6251 . See the requirement. You may also have a filing requirement. See the Instructions for instructions above for a tax-exempt covered security acquired at a premium. Form 8938. Box 10. For a taxable or tax-exempt covered security, if you made an election Account number. May show an account or other unique number the payer under section 1278 (b) to include market discount in income as it accrues and assigned to distinguish your account. Box 1. Shows taxable interest paid to you during the calendar year by the payer. section 1.6045-1(n)(5), shows the market discount that accrued on the debt This does not include interest shown in box 3. May also show the total amount instrument during the year while held by you, unless it was reported on Form of the credits from clean renewable energy bonds, new clean renewable energy 1099-OID. For a taxable or tax-exempt covered security acquired on or after bonds, qualified energy conservation bonds, qualified zone academy bonds, January 1, 2015, accrued market discount will be calculated on a constant yield qualified school construction bonds, and build America bonds that must be basis unless you notified your payer in writing in accordance with included in your interest income. These amounts were treated as paid to you section 1.60451(n)(5) that you did not want to make a constant yield election for during the calendar year on the credit allowance dates (March 15, June 15, market discount under section 1276(b). Report the accrued market discount on September 15, and December 15). For more information, see Form 8912. See your income tax return as directed in the Instructions for Form 1040. Market the instructions above for a taxable covered security acquired at a premium. discount on a tax-exempt security is includible in taxable income as interest Box 2. Shows interest or principal forfeited because of early withdrawal of time income. savings. You may deduct this amount to figure your adjusted gross income on your income tax return. See the Instructions for Form 1040 to see where to take (Continued on the back of Copy 2.) the deduction. Instructions for Recipient (continued) Box 11. For a taxable covered security (other than a U.S. Treasury Box 13. For a tax-exempt covered security, shows the amount of the interest payment(s), unless you notified the payer in writing in amount is reported in this box, see Pub. 550 to determine the net want to amortize bond premium under section 171. If an amount is If an amount is not reported in this box for a tax-exempt covered reported in this box, see the Instructions for Schedule B (Form 1040) security acquired at a premium, the payer has reported a net amount to determine the net amount of interest includible in income on Form of in box 1040 or 1040 -SR with respect to the security. If an amount is not 13 is greater than the amount of interest paid on the tax-exempt reported in this box for a taxable covered security acquired at a covered security, the excess is a nondeductible loss. See Regulations premium and the payer is reporting premium amortization, the payer section 1.171-2(a)(4)(ii). has reported a net amount of interest in box 1. If the amount in box 11 Box 14. Shows CUSIP number(s) for tax-exempt bond(s) on which is greater than the amount of interest paid on the covered security, tax-exempt interest was paid, or tax credit bond(s) on which taxable see Regulations section 1.171-2(a)(4). Box 12. For a U.S. Treasury obligation that is a covered security, year. If blank, no CUSIP number was issued for the bond(s). shows the amount of premium amortization allocable to the interest Boxes 15-17. State tax withheld reporting boxes. payment(s), unless you notified the payer in writing in accordance with Regulations section 1.60451(n)(5) that you did not want to amortize Nominees. If this form includes amounts belonging to another Regulations section 1.6045-1(n)(5) that you did not want to amortize see the Instructions for Schedule B (Form 1040) to determine the net Form 1099-INT for each of the other owners showing the income amount of interest includible in income on Form 1040 or 1040-SR with allocable to each. File Copy A of the form with the IRS. Furnish Copy respect to the U.S. Treasury obligation. If an amount is not reported in B to each owner. List yourself as the "payer" and the other owner(s) this box for a U.S. Treasury obligation that is