Tax Accounting I Please complete the required federal individual income tax return forms for the following taxpayer You must complete the forms neatly by hand You may not use any tax return preparation software You can access the necessary forms on Blackboard under Course Information or online at www irs gov You will need to complete Form 1040, pages 1 and 2 Schedule A, Itemized Deductions Schedule B, Interest and Ordinary Dividends, page 1 of Schedule C, Profit or Loss from Business and page 1 of Schedule E, Supplemental Income and Loss Ignore alternative minimum tax calculations Ignore the requirement to attach the form(s) W 2 to the front page of the Form 1040 If required information is missing, use reasonable assumptions to fill in the gaps Also Please round all tax return entries to the nearest dollar Please use the tax rate schedule at the back of your text to calculate any tax liability AGI should equal $41,738 and total tax on line 63 should equal $3,980 Jonathan Hales worked as a telephone customer representative for an Internet based company, and he also started a small business out of his home where he saved LPs (record albums ) to CDs In addition to his employment as a customer representative and his self employment with his home based business, Jonathan owned residential rental property The following information relates to 2015 Jonathans Social Security number is 546 87 9876 His mailing address is 1234 Spring Lane, Springdale, Missouri 65807 Jonathan is a U S citizen Jonathan was single during the entire year Jonathan turned 25 on July 1 Jonathans friend Martin Smith moved in with Jonathan on May 15, 2015 Martin struggled to find work and only earned $3,900 during 2015 Jonathan provided a home for Martin as of May 15, and also provided for Martins support after Martin moved in Jonathan had minimum essential coverage for the entire year during 2015 Jonathan received the following income during the year Employer Gross Wages Federal Income Tax Withholding State Income Tax Withholding Small Town Internet, Inc 42,000 5,800 2,500 All applicable and appropriate payroll taxes were withheld by his employer Jonathan received $15 in interest income from the First Bank of Springdale during the year Jonathan did not own, control or manage any foreign bank accounts nor was he a grantor or beneficiary of a foreign trust during the tax year Jonathan had $2,500 in gross revenue from his home based business for 2015 Expenses for the business included Office supplies $250 Advertising 150 Equipment rental 300 Jonathan incurred $254 in self employment taxes from the home based business During 2015 Jonathan collected $9,500 in gross rental receipts on residential rental property he owns The single family home is located at 1236 Spring Lane, next door to his personal residence He also paid the following expenses related to the rental business Real estate taxes $950 Depreciation 1,800 Repairs 700 Mortgage interest 4,000 Jonathan also visited a nearby casino during 2015 and his total winnings amounted to $1,500 for the year Jonathan would like for his tax preparer to figure out whether he should take the standard deduction or itemized deductions on his tax return He has supplied the following list of personal expenses he paid during 2015 Prescription medications $500 Over the counter medications 150 Eye glasses 300 Personal property taxes 250 Real estate taxes on his residence 975 Mortgage interest on his residence 3,000 Interest on his auto loan 1,100 Credit card interest 825 Charitable gifts to his church 1,600 Gambling losses 1,750 Jonathans employer does not offer a retirement plan, so Jonathan would also like to make the maximum deductible Individual Retirement Account (IRA) contribution that he can He understands that he may still make the contribution up until he files his tax return before April 15 of 2016 Jonathan does not want to contribute to the Presidential Election Campaign He would like to receive a refund (if any) of any tax he may have overpaid for the year His preferred method of receiving the refund is by check

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Tax Accounting I Please complete the required federal individual income tax return forms for the following taxpayer. You must complete the forms neatly by hand.

Tax Accounting I

Please complete the required federal individual income tax return forms for the following taxpayer. You must complete the forms neatly by hand. You may not use any tax return preparation software. You can access the necessary forms on Blackboard under Course Information or online at www.irs.gov. You will need to complete Form 1040, pages 1 and 2; Schedule A, Itemized Deductions; Schedule B, Interest and Ordinary Dividends, page 1 of Schedule C, Profit or Loss from Business; and page 1 of Schedule E, Supplemental Income and Loss. Ignore alternative minimum tax calculations. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps.

Also:

Please round all tax return entries to the nearest dollar.

Please use the tax rate schedule at the back of your text to calculate any tax liability.

AGI should equal $41,738 and total tax on line 63 should equal $3,980.

Jonathan Hales worked as a telephone customer representative for an Internet based company, and he also started a small business out of his home where he saved LPs (record albums!) to CDs. In addition to his employment as a customer representative and his self-employment with his home-based business, Jonathan owned residential rental property. The following information relates to 2015:

Jonathans Social Security number is 546-87-9876

His mailing address is 1234 Spring Lane, Springdale, Missouri 65807

Jonathan is a U.S. citizen

Jonathan was single during the entire year

Jonathan turned 25 on July 1

Jonathans friend Martin Smith moved in with Jonathan on May 15, 2015. Martin struggled to find work and only earned $3,900 during 2015. Jonathan provided a home for Martin as of May 15, and also provided for Martins support after Martin moved in.

Jonathan had minimum essential coverage for the entire year during 2015

Jonathan received the following income during the year:

Employer	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
Small Town Internet, Inc.	42,000	5,800	2,500

All applicable and appropriate payroll taxes were withheld by his employer.

Jonathan received $15 in interest income from the First Bank of Springdale during the year. Jonathan did not own, control or manage any foreign bank accounts nor was he a grantor or beneficiary of a foreign trust during the tax year.

Jonathan had $2,500 in gross revenue from his home-based business for 2015. Expenses for the business included:

Office supplies $250

Advertising 150

Equipment rental 300

Jonathan incurred $254 in self-employment taxes from the home-based business.

During 2015 Jonathan collected $9,500 in gross rental receipts on residential rental property he owns. The single family home is located at 1236 Spring Lane, next door to his personal residence. He also paid the following expenses related to the rental business:

Real estate taxes $950

Depreciation 1,800

Repairs 700

Mortgage interest 4,000

Jonathan also visited a nearby casino during 2015 and his total winnings amounted to $1,500 for the year.

Jonathan would like for his tax preparer to figure out whether he should take the standard deduction or itemized deductions on his tax return. He has supplied the following list of personal expenses he paid during 2015:

Prescription medications $500

Over the counter medications 150

Eye-glasses 300

Personal property taxes 250

Real estate taxes on his residence 975

Mortgage interest on his residence 3,000

Interest on his auto loan 1,100

Credit card interest 825

Charitable gifts to his church 1,600

Gambling losses 1,750

Jonathans employer does not offer a retirement plan, so Jonathan would also like to make the maximum deductible Individual Retirement Account (IRA) contribution that he can. He understands that he may still make the contribution up until he files his tax return before April 15 of 2016.

Jonathan does not want to contribute to the Presidential Election Campaign. He would like to receive a refund (if any) of any tax he may have overpaid for the year. His preferred method of receiving the refund is by check.