Tax Mastery: Joseph Miller's $1040$

This activity offers practical experience in preparing essential tax forms, providing insights into the tax implications of various income sources and deductions.

Instructions:

Use the provided data to navigate through the $1040$ Form, Schedule A$,$ and Schedule D$,$ ensuring a comprehensive understanding of Joseph Miller's tax situation.

Data for Joseph Miller:

Employment: Works at the Veteran Hospital

W$-2$ Information: $$94,750$ income, $$9,180$ withholding

Filing Status: Single taxpayer

Deductions and Income:

Mortgage Interest:

Joseph paid $$5,450$ in mortgage interest.

Medical Expenses:

Medical expenses for the year amounted to $$8,550.$

State Taxes:

State taxes paid by Joseph were $$1,650.$

Capital Gain $($Short$-$Term$)$:

Joseph received $$15,880$ in short$-$term capital gains.

Your Task:

$1040$ Form:

Enter Joseph Miller's personal information and employment details.

Summarize income, including W$-2$ earnings and any additional income.

Report tax withholdings.

Calculate adjusted gross income $($AGI$)$ considering deductions.

Schedule A $-$ Itemized Deductions:

Record mortgage interest, medical expenses, and state taxes paid.

Follow the guidelines for Schedule A to calculate total itemized deductions.

Schedule D $-$ Capital Gains and Losses:

Report Joseph's short$-$term capital gains of $$15,880.$

Follow Schedule D instructions for accurate reporting.

Final Steps:

Double$-$check all entries for accuracy.

Ensure adherence to IRS guidelines for form completion.