Tax Return Problem 1 Jason Ready attended the University of San Diego during 2013-2017. He incurred education expenses of $10,000 in total for his education, and $1,500 of that amount was incurred in 2017 for his last semester. To finance his education, he borrowed $7,000 through a federal student loan program and borrowed another $3,000 from SoCal Credit Union for educational purposes. After graduation, he accepted a position with the Portland office of KPMG and moved there in May 2017. He lives at 4560 Ranch Drive, Portland, OR 97035. His social security number is 412-34- 5670 (date of birth 7/10/1995). Jason had qualifying health care coverage at all times during the tax year. His W-2 contained the following information: Wages (box 1) $67,533.05 Federal W/H (box 2)$ 8,994.95 Social security wages (box 3)$67,533.05 Social security W/H (box 4)S 4,187.05 Medicare wages (box 5)$67,533.05 Medicare W/H (box 6)S 979.23 In moving to Portland, he incurred the following moving expenses: $495 in gasoline. $295 for renting a truck from IGOTYA rentals. $125 in food. $465 for motel lodging on the way to Portland. He also received two Forms 1098-E One was from the federal student loan program, which showed $450 of student loan interest; the other was from SoCal Credit Union and showed $150.75 of student loan interest. Prepare a Form 1040, a Form 3903, and a Form 8917. If manually preparing the return, the Student Loan Interest Deduction worksheet can be found in IRS Publication 970, Tax Benefits for Education. 303 Tax Return Problem 1 Jason Ready attended the University of San Diego during 2013-2017. He incurred education expenses of $10,000 in total for his education, and $1,500 of that amount was incurred in 2017 for his last semester. To finance his education, he borrowed $7,000 through a federal student loan program and borrowed another $3,000 from SoCal Credit Union for educational purposes. After graduation, he accepted a position with the Portland office of KPMG and moved there in May 2017. He lives at 4560 Ranch Drive, Portland, OR 97035. His social security number is 412-34- 5670 (date of birth 7/10/1995). Jason had qualifying health care coverage at all times during the tax year. His W-2 contained the following information: Wages (box 1) $67,533.05 Federal W/H (box 2)$ 8,994.95 Social security wages (box 3)$67,533.05 Social security W/H (box 4)S 4,187.05 Medicare wages (box 5)$67,533.05 Medicare W/H (box 6)S 979.23 In moving to Portland, he incurred the following moving expenses: $495 in gasoline. $295 for renting a truck from IGOTYA rentals. $125 in food. $465 for motel lodging on the way to Portland. He also received two Forms 1098-E One was from the federal student loan program, which showed $450 of student loan interest; the other was from SoCal Credit Union and showed $150.75 of student loan interest. Prepare a Form 1040, a Form 3903, and a Form 8917. If manually preparing the return, the Student Loan Interest Deduction worksheet can be found in IRS Publication 970, Tax Benefits for Education. 303
