Sally Student

123 Maple Street

Cincinnati, Ohio 44000

Social Security No. 123-45-6789

Sally is a 30-year old single person. She is an accountant and also works a side weekend job in an art gallery. She is not claimed as a dependent by anyone else. For 20XX, she had the following

INCOME:

1. W-2 from 1^st employer

Gross wages income: $13,164

Federal Withholding $ 921

2. W-2 from 2d employer

Gross wages $50,000.00

Federal withholding $ 9,500.00

3. Interest income from bank $132.00

4 Interest from brokerage firm $2,100.00

5. Ordinary "qualified" dividends from large U.S. Corporation: $3,000.00

6. She sold the following assets during last year:

a. General Motors stock 1000 shares, bought 1/1/2010 for $10,000, sold July 1 for $16,000

b. Sold Facebook 500 shares, bought for $8,000 on February 1 of last year, and sold for $6,000 on August 1^st of last year

c. Sold her car, bought July 13, 2013 at $25,000.00, sold on Craigslist October 1^st of last year, for $9,000

d. Sold her fishing boat, for which she paid $3,000 on July 1, 2013, for $4,000 on November 1^st

of last year

POSSIBLE DEDUCTIONS

1. Mortgage interest paid $6,700

2. State and local income taxes paid $1,400

3. Charitable contributions to a 501( c)(3) charity $1,800.00

4. Casualty loss, her garage was destroyed by fire. Cost and fair market value were $9,000.

Insurance only paid $3,000

5. Property taxes on her home: $2,600

Go the IRS website at irs.gov, and get a Form 1040 and instructions, and also a Schedule A, B, D . Use these, with the facts above, to prepare a Form 1040 for Sally for for the most recent year for which there is a form (this is almost always the year prior to the present year). Remember to consider both the standard deduction vs. itemized deduction, and the personal exemption, if any. Also, you may need other forms, such as the 8949, and 4684, or 4797