So I'm doing a tax project (intro to income tax accounting) for my class where we are filing taxes for a family, married filing jointly. Gross Wages = $110,000. Federal income tax witholding = $13,000.

I've never filed taxes in my personal life and so I am kinda lost on this and so I just have a few questions. We have to figure out which documents to use ourself on the IRS website. Can you check my work for me and see if I'm on the right track? This is what I have so far. Thank you in advance.

So if a family has interest income from a bank that totals $1,000, $500 of that comes from U.S Treasury bonds (I'm pretty sure that interest on state and local bonds are exempt from taxation on state level but taxable at federal level). I think I would put the whole $1,000 of the interest in Form 1040 line 2b. They have qualified dividend income $5,000 and I think I would put it in form 1040 line 3a.

*****Then if they have activity in their brokerage account during the year of 2018 (1/01/18) sold 1000 shares for $15,000, (2/12/18) sold 50 shares for $7,000, (5/03/18) purchased 100 shares for $3,000, (7/18/2018) purchased 200 shares for $2,000 for a net total of $17,000, it would be considered a short term ordinary gain and put in form 1099-B, Copy B. I'm not sure how to put down the dates... ? I really tried to look this up on youtube.

*****Then this is the sale of their securities:

-purchased 100 shares 1/01/18 for $1,000

-purchased 100 shares 3/01/18 for $2,000

-purchased 100 shares 7/01/18 for $3,000

-purchased 100 shares 8/01/18 for $3,500

*****and they also received 1,000 shares of stock from a family member on 12/01/18. The family members basis in the stock at the time of gift was $3,000. Fair market value at the date of the gift was $7,000. So FMV > donors basis so $7,000 - $3,000 = $4,000 gain (I think).

So for total securities, would you add $1,000 + 2,000 + 3,000 + 3,500 and then the 4,000 gain for a total of $13,500 ?

*****The family has $10,000 long term capital loss carryover from the prior tax year.

So I believe capital losses can be carried back 3 years and they can deduct 3,000 because they are married and filing jointly. Then they can carry it forward indefinitely. So capital loss totals = $7,000 and I would put that in form 1040 line 6. Would I also put in in Form 1099-B Box 8?

How would I fill out Form 1099-B? Does this look right? I'm also trying to understand the instructions at the bottom of the tax form but it's kind of confusing to me.

So 1d would be the total $17,000 ,1e is their securities $13,500. I think I would check the "Short term gain/loss" and also check the "ordinary." Then I believe I would have to check mark "net proceeds" cause I netted the shares amount and then sales of securities.

Last question, do the amounts in box 1d and 1e appear in form 1040? Thank you so much for your input.

1 1.000 4a 7.000 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . 2a Tax-exempt interest. . . b Taxable interest. Attach Sch. B if required 3a Qualified dividends. . . 3a 5,000 b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a TRA distributions. . . . . b Taxable amount . . . . . Single or Married c Pensions and annuities. . 4c d Taxable amount . . . . filing separately, $12,200 5a Social security benefits. . . 5a b Taxable amount . .. Married filing 6 Capital gain or loss). Attach Schedule D if required. If not required, check here . . . jointly or Qualifying . 06 widow(er), 7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . $24,400 Head of b Add lines 1, 2b, 3b, 4b, 40, 5b, 6, and 7a. This is your total income . . . . . household, 8a $18,350 Adjustments to income from Schedule 1, line 22 . . If you checked b Subtract line 8a from line 7b. This is your adjusted gross income . 8b any box under Standard 9 Standard deduction or itemized deductions (from Schedule A) . . . . . 24,400 L Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A .. . 10 see instructions. 11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . 11a b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O- . . . . . 11b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B . .A . .A Form 1040 (2019) CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Applicable checkbox on Form 8949 OMB No. 1545-0715 Proceeds From or foreign postal code, and telephone no. JOHN DOE, JANE DOE DOLOL Broker and Barter Exchange 112 SOUTHWEST 159TH ST SAN JOSE, CALIFORNIA 1011 Form 1099-B Transactions 1a Description of property (Example: 100 sh. XYZ Co.) Shares of Stock and Securities 1b Date acquired 1c Date sold or disposed 1/01/18 7/18/2018 PAYER'S TIN RECIPIENT'S TIN 1d Proceeds 1e Cost or other basis Copy B XXX-XX-XXXX 17,000 $ 13,500 For Recipient 1f Accrued market discount 1g Wash sale loss disallowed 0 $ RECIPIENT'S name 2 Short-term gain or loss V 3 If checked, proceeds from: Long-term gain or loss Collectibles Ordinary QOF This is important tax Street address (including apt. no.) 4 Federal income tax withheld 5 If checked, noncovered information and is $ 10,000 security being furnished to the IRS. If you are 6 Reported to IRS: 7 If checked, loss is not allowed based on amount in 1d required to file a City or town, state or province, country, and ZIP or foreign postal code Gross proceeds return, a negligence Net proceeds penalty or other 8 Profit or (loss) realized in 9 Unrealized profit or (loss) on sanction may be 2019 on closed contracts open contracts-12/31/2018 imposed on you if Account number (see instructions) this income is 7,000 $ taxable and the IRS CUSIP number FATCA filing 10 Unrealized profit or loss) on 11 Aggregate profit or loss) determines that it requirement open contracts-12/31/2019 on contracts has not been 14 State name 15 State identification no. 16 State tax withheld reported. 12 If checked, basis reported 13 Bartering to IRS 0 $ Form 1099-B (Keep for your records) www.irs.gov/Form1099B Department of the Treasury - Internal Revenue Service 1 1.000 4a 7.000 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . 2a Tax-exempt interest. . . b Taxable interest. Attach Sch. B if required 3a Qualified dividends. . . 3a 5,000 b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a TRA distributions. . . . . b Taxable amount . . . . . Single or Married c Pensions and annuities. . 4c d Taxable amount . . . . filing separately, $12,200 5a Social security benefits. . . 5a b Taxable amount . .. Married filing 6 Capital gain or loss). Attach Schedule D if required. If not required, check here . . . jointly or Qualifying . 06 widow(er), 7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . $24,400 Head of b Add lines 1, 2b, 3b, 4b, 40, 5b, 6, and 7a. This is your total income . . . . . household, 8a $18,350 Adjustments to income from Schedule 1, line 22 . . If you checked b Subtract line 8a from line 7b. This is your adjusted gross income . 8b any box under Standard 9 Standard deduction or itemized deductions (from Schedule A) . . . . . 24,400 L Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A .. . 10 see instructions. 11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . 11a b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O- . . . . . 11b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B . .A . .A Form 1040 (2019) CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Applicable checkbox on Form 8949 OMB No. 1545-0715 Proceeds From or foreign postal code, and telephone no. JOHN DOE, JANE DOE DOLOL Broker and Barter Exchange 112 SOUTHWEST 159TH ST SAN JOSE, CALIFORNIA 1011 Form 1099-B Transactions 1a Description of property (Example: 100 sh. XYZ Co.) Shares of Stock and Securities 1b Date acquired 1c Date sold or disposed 1/01/18 7/18/2018 PAYER'S TIN RECIPIENT'S TIN 1d Proceeds 1e Cost or other basis Copy B XXX-XX-XXXX 17,000 $ 13,500 For Recipient 1f Accrued market discount 1g Wash sale loss disallowed 0 $ RECIPIENT'S name 2 Short-term gain or loss V 3 If checked, proceeds from: Long-term gain or loss Collectibles Ordinary QOF This is important tax Street address (including apt. no.) 4 Federal income tax withheld 5 If checked, noncovered information and is $ 10,000 security being furnished to the IRS. If you are 6 Reported to IRS: 7 If checked, loss is not allowed based on amount in 1d required to file a City or town, state or province, country, and ZIP or foreign postal code Gross proceeds return, a negligence Net proceeds penalty or other 8 Profit or (loss) realized in 9 Unrealized profit or (loss) on sanction may be 2019 on closed contracts open contracts-12/31/2018 imposed on you if Account number (see instructions) this income is 7,000 $ taxable and the IRS CUSIP number FATCA filing 10 Unrealized profit or loss) on 11 Aggregate profit or loss) determines that it requirement open contracts-12/31/2019 on contracts has not been 14 State name 15 State identification no. 16 State tax withheld reported. 12 If checked, basis reported 13 Bartering to IRS 0 $ Form 1099-B (Keep for your records) www.irs.gov/Form1099B Department of the Treasury - Internal Revenue Service