Resources:Appendix C ofMcGraw-Hill's Taxation of Individuals and Business Entities, 2017 Edition;Form 1040;Form 1040 Instructions;IRS Publication;IRSwebsite

Completethe Individual Tax Return Problem 1, Page C.

If information is missing, use reasonable assumptions to fill in the gaps. Form 1040, supporting tables, and instructions to the forms and schedules can be found at theIRSwebsite.

4.1212017 University of Phoenix: McGraw'Hill's Taxation of Individuals and Business Entities 201? Edilion _ App'endix'Cg Comprehensive Tax Return Problems Ten additional Comprehensive Tax Return problemscovering individual, corporation, partnership, and S corporation tax returnscan be found in the Connect Library. Individual Tax Return Problem 1 Required: - Use the following information to complete Keith and Jennifer Hamilton's 2015 federal income tax return. If information is missing, https:i/phoenix.vitalsource.coml#fbooksl1260114953lcl6/92ll4l1BlaWZ@E):44.5 115 4/2/2017 University of Phoenix: MoGrawHiil's Taxation of Individuals and Business Entities 2017 Edition use reasonable assumptions to fill in the gaps. - Form 1040, supporting schedules, and instructions to the forms and schedules can be found at the IRS Web site (wmv.irs.gov). Facts: 1. Keith Hamilton is employed as an airline pilot for Flyby Airlines in Las Vegas, Nevada. Jennifer is employed as a teacher's assistant at Small World Elementary School, in Henderson, Nevada. Keith and Jennifer live in a home they purchased this year. Keith and Jennifer have three children who lived with them all year, Joshua (17), Danielle (14), and Sara (10). Keith and Jennifer provided the following personal information: . Keith and Jennifer do not want to contribute to the presidential election campaign. - Keith and Jennifer do not claim itemized deductions. . Keith and Jennifer live at 3678 Blue Sky Drive, Henderson, Nevada 89052. . Keith's birthday is 10/12/1970 and his Social Security number is 535 224466. . Jennifer's birthday is 7/ 16/1973 and her Social Security number is 535-44'2255- . Joshua's birthday is 6/30/1998 and his Social Security number is 454-54-5454- - Danielle's birthday is 8/12/2001 and her Social Security number is 343'43'4343- . Sara's birthday is 5/13/2005 and her Social Security number is 232- 323232. m... htips:llphoenix.viteisowce.coml'#lbooksl 12601149531'cll92il4i'18/6I4J2@0244.5 41212017 University of Phoenix: McGrawHill's Taxation of Individuals and Business Entities 2017 Edition 2. Keith received the following Form W2 for 2015 from Flyby Airlines. 3 Employee's social security number For Ofcial Use Only > E E HE E 53522-4466 OMB No. 15450008 l: Employer identication number (EIN) 1 Wagesipe, otheroompensation 2 Feoeral income tax withheld 91-0001002 163,645.00 31 ,00000 c Employer's name, address and ZlF' code 3 Social security wages 4 Sociai security tax withheld Hyby Amines $118,500.00 7,347.00 - Medicare wages and tips 6 Medicare tax withheld 375 West Flight Blvd. \"8,645.00 2:590'35 Las Vegas, NV 8911 9 Social security tips 3 Ailocated lips d Control number 19 Dependenicare benets Nonqualied plans 12a See instructions tor box 12 z D 15.000 Stilt-1m Relirrnsent thud-rm enmlcyee plan m be; 1 Keith Hamilton B D 1 3678 Blue Sky Drive 4 Other Henderson, NV 89052 f Employee's address and ZEP code 15 Stale Employer's state ID number 16 State wages. ripe etc. 17 State income tax |18 Local WageSJIDS. etc. 19 Local income iax NV l 987654321 163,645.00 0-00 ______________________________________________________________________________________________________ l_ Rm w-z Wage and Tax Statement a 1' 5 Copy A For Social Security Administration Send this entire page with Form W3 to the Sociai Security Administration: photocopies are not acceptable. Do Not Cut. Fold, or Staple Forms on This Page .20 Locality name Department of the Treasury internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. NO. 1013M] 3. Jennifer received the following Form W-2 for 2015 from Small World Elementaiy School. httpsjlphoenix.vitatsowoe.coml#l'book511260114953101682114l'1BIB/4!2@0:44.5 SIG 412/2017 University of Phoenix: McGrawHiil's Taxation of individuals and Business Entities 2017 Edition Void D a Employee's Social security number ForOfcial Use Only F 535-44.2255 , OMB No. 1545-0003 b Employer identication number (EIN) ' 1 Wages, lips, other compensation 2 Federal income lax withheld Sit0001003 36,825.00 ji 5,524.00 c Employer's name, address. and ZIP code . 3 Social security wages 4 Social security tax wiihheid Smali World Elementary School . 33,325.00 . ?.469.1 333 Tiny TOT Lane 5 Medicare wages and tips 6 Medicare tax withheld 39,925.00 577.46 Henderson, NV 89053 7 Social secuniyiips 3 Ailocatedtips d Ountrolnumber __ I _ _ - . '16 Deendentcare benets i if D 13 Stamina. Hemmm Illuminati? I 12b ; snowa; plan arm,- 5 Jennifer Hamilton l D E L1 3678 Blue Sky Drive 7 1' 0"\" Henderson, NV 89052 i J; Sufi, 11 NonquaI-i'iied plans 123 See-instructions for box l2 l f Employee's address and ZIP code 15 Stars Empioyer's stare ID number i 1 23456789 w_2 Wage and Tax Statement E D l 5 Department of the TreasuryIntemal Revenue Service Form For Privacy Act and Paperwork Reduction Copy A For Social Security Administration Send this entire page with A\" Notice, see the separate instructions. Form W~3 to the Social Security Administration; photocopies are not acceptable, Cat, No. 101340 Do Not But, Fold, or Staple Forms on This Page 4. During 2015, Keith and Jennifer received $550 in interest from Las Vegas municipal bonds, $1,070 interest from US. Treasury bonds, and $65 from their savings account at SCD Credit Union. Keith and Jennifer are joint owners of the Las Vegas city bonds and the US. Treasury bonds. They have a joint savings account at SCD Credit Union. 5. On January 21, 2015, Jennifer was involved in a car accident. Because the other driver was at fault, the other driver's insurance company paid Jennifer $1,350 for medical expenses relating to her injuries from the accident and $300 for emotional distress from the accident. She received payment on March 15, 2015. 6. Keith's father died on November 15, 2014. Keith received a $100,000 death benet from his father's life insurance policy on February 8, 2015. imm htipsjlphoenix.viiaisourcecomlibooks/1260114953/cl6/92U4l13i6/42@0:44.5 ;Page ("J-2W M6 42/2017 University of Phoenix: McGraw-Hill's Taxation of Individuals and Business Entities 2017 Edition 7. On February 15, 2015, Keith hurt his arm on a family skiing trip in Utah and was unable to y for two weeks. He received $4,000 for disability pay from his disability insurance policy. He received the check on March 2, 2015. Flyby Airlines paid $600 in premiums on this policy during 2015. The disability insurance policy premiums are paid for by Flyby Airlines as a fully taxable fringe benet to Keith (the premiums paid on his behalf are included in Keith's compensation amount on his W2). 8. J ennifer's grandmother died on March 10, 2015, leaving Jennifer with an inheritance of $30,000. (She received the inheritance on May 12, 2015.) Flyby Airlines had space available on its Long Island, New York, ight and provided Keith, Jennifer, and their three children with free ights so they could attend the funeral. The value of the ticket for each passenger was $600. 9. On April 1, 2015, Jennifer slipped in the Small World Elementary lunchroom and injured her back. Jennifer received $1,200 in worker's compensation benets because her workrelated injury caused her to miss two weeks of work. She also received a $2,645 reimbursement for medical expenses from the health insurance company. Small World Elementary pays the premiums for J ennifer's health insurance policy as a nontaxable fringe benet. 10. On May 17, 2015, Keith and Jennifer received a federal income tax refund of $975 from their 2014 federal income tax return. 11. On June 5, 2015, Keith and Jennifer sold their home in Henderson, Nevada, for $510,000 (net of commissions). Keith and Jennifer purchased the home 11 years ago for $470,000. On July 12, 2015, they bought a new home for $675,000. 12. On J uly 25, 2015, Keith's aunt Beatrice gave Keith $18,000 because she wanted to let everyone know that Keith is her favorite nephew. httpsjfphoemx.vilaisourcehomlbooks/i26011495310I6/92P1118ISI4IZ@0244.5 '____ 516 41212017 University of Phoenix: McGraw-Hill's Tatalion of Intividuais and Business Entities 2017 Edition 13. On September 29, 2015, Jennifer won an iPad valued at $500 in a rafe at the annual fair held at Joshua's high school. 14. Keith and Jennifer have qualifying insurance for purposes of the the Affordable Care Act (ACA). Individual Tax Return Problem 2 Required: . Use the following information to complete J ohnelle and Latoya Henry's 2015 federal income tax return. If information is missing, use reasonable assumptions to ll in the gaps. . You may need the following forms to complete the project: F 0m 1040 and Schedule A. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.g0v). The instructions can be helpful in completing the forms. Facts: 1. J ohnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a nancial planner for her mother's company, Longterm Investments, Inc, a full-SEI'VlCB wealthplanning rm. They provide the following information: - They both want to contribute to the presidential election campaign. - They live at 9876 Old Waverly, Charleston, South Carolina. - J ohnelle's birthday is 7/17/1965 and his Social Security number is 555-12-6789. MFJge 0-; a: https:llphoenix.vitalsource.cornf#lbooksi126011le61'92!14/1815!4/2@0:44.5 6'5