Taxpayer Information Taxpayer name: Taxpayer SSN: Taxpayer DOB: Taxpayer occupation: Bruce H. Harrison 201-00-0045 April 1, 1977 Contractor Spouse name: Spouse SSN: Spouse DOB: Spouse occupation: Lois A. Harrison 201-00-1451 March 28, 1982 Newscaster Address: Cell phone (T): 1312 Locust Street Your City, YS XXXXX (XXX) 555-6336; Preferred: Anytime; FCC: Yes; OK to call (XXX) 555-6363; Anytime; FCC: Yes; OK to call bhharrison@net.net Iharrison@net.net Cell phone (S): Taxpayer email: Spouse email: Yes Health Insurance Information Did everyone in the household have health insurance in 2019? Total months covered through a state exchange or federal marketplace: Total months covered through an employer-sponsored plan: Was a Form 1095-A issued? 0 12 No Bruce and Lois Harrison are new clients. Last year, they prepared their own return using online software, but this year, they would like professional assistance. They are married and wish to file a joint tax return. Both of their SSNs are valid for work in the U.S. and were received before the original filing due date of their return (including extensions). Both are U.S. citizens. No one may claim them as dependents. Neither is a student. They both wish to designate $3 to the Presidential Election Campaign Fund. Neither is blind or disabled. Bruce and Lois did not suffer any casualty losses during the current tax year. They did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency. Neither Bruce nor Lois have a financial interest in or signature authority over a foreign account. They did not receive a distribution from, nor were they the grantors of or transferorto, a foreign trust. The IRS has not issued any Identity Protection ID Numbers for their return. They did not receive a notice from the IRS or any state or local taxing authority within the last year. Neither Bruce nor Lois provide a driver's license or state identification. Household Information Bruce and Lois own their home. They have two children. Dependent name: Dependent SSN: Dependent DOB: Dependent relationship: Time in household: Gross income: Support: Lyla B. Harrison 201-00-2451 July 12, 2014 Daughter 12 months $0 Does not provide over half of her own support Kevin E. Harrison 201-00-2452 October 15, 2016 Dependent name: Dependent SSN: Dependent DOB: Dependent relationship: Time in household: Gross income: Support: Son 12 months $0 Does not provide over half of his own support Lyla and Kevin lived with Bruce and Lois all year, and they did not have any income. Neither is married or disabled. They are both U.S. citizens. Lyla and Kevin have SSNs that are valid for work in the United States and were received before the due date for the return (including extensions). Bruce and Lois brought in copies of medical records for both children. Adjustments Lois contributed $2,500 to a traditional IRA during the year. She only has one IRA account, and the value of this account on December 31, 2019, was $13,097.85. All of her previous contributions were deductible. Lois has never taken a distribution from this or any other retirement account. Bruce is covered by an employer sponsored retirement plan, but Lois is not. Credits Bruce and Lois paid Little Ones Learning Center $7,200 ($3,600 for each child) to care for Kevin and Lyla while they worked. The center's EIN is 09-2014501. It is located at 1521 West Plain Road, Your City, YS xxxXX. The phone number for the Center is (XXX) 555-0034. Bruce and Lois have documentation substantiating this expense. Self-Employment Income Lois has always been an avid reader, and during the year, she had an opportunity to lead a book club at a nearby community center. The community center paid Lois for this work. At the end of the year, they sent Lois a Form 1099-MISC reporting an amount for nonemployee compensation in box 7 of the form. This form is shown in the Information Documents section. The community center is within walking distance of the couple's home, so Lois did not have any vehicle or travel expenses. Her only business related expense was for $225 in supplies. For purposes of the qualified business income deduction (BID), this is not a specified service trade or business (SSTB). Lois did not pay any qualified wages, nor does she have any qualified business property, or any losses or short-term gains from asset disposition Capital Assets Bruce was unhappy with the performance of an investment he had made in 2017. He sold the shares of stock on November 7, 2019, for fear the stock would continue its downward trend. Information relating to this sale was reported on a Form 1099-8. This form is shown in the Information Documents section. Itemized Deductions Bruce and Lois want to itemize deductions if it will be more beneficial than taking the standard deduction. They bring a Form 1098 reporting mortgage interest and real estate taxes paid on their personal residence. This is shown in the Information Documents section. Bruce and Lois would prefer to take the state income tax deduction rather than the sales tax deduction. They also had the following potentially deductible items for 2019: Item Amount Notes 2018 State balance due $582 Made this payment on April 10, 2019 Cash donation to Cancer Research Foundation $475 Paid March 4, 2019 Information Documents Vartha efile soriano DO BOB numb XXX-XX-0045 Employercin number 09-2014502 C Employers, and ZP 0000 ELM CONSTRUCTION AGENCY 6 GREENWOOD LANE YOUR CITY, YS XXXXX Sofe accurate FASTI Use 13 OMB No 152-0000 Women 39,950.00 SSV W 42,950.00 & Magos and te 42,950.00 7 V 18 2,671.05 w 2,662.90 darwin 622.78 Acade dol 10 Dependent web O'ne and S11 Houses taas one for bot DD 17,485.00 BRUCE H. HARRISON 1312 LOCUST STREET YOUR CITY, YS XXXXX D 3,000.00 124 E' dan DP code 15 Error Dr YS 490020210A 17 1. 19 UG 20 39,950.00 2,197.25 Dupa Downs W-2 Wate and Tax 2019 Statement Copy B-To Be Fled With Employd'. FEDERAL Tax Return This information is being used is the venue Service RE 201-00-1451 09-2014603 ce od code LOCAL NEWS NETWORK 112 NORTHERN STREET YOUR CITY, YS XXXXX our VSTWO OM FAST cefile CE 44,500.00 3,517.79 wed 44,500.00 2,759.00 Mundo de 44,500.00 645.25 7 ed . |-cartalari LOIS A. HARRISON 1312 LOCUST STREET YOUR CITY, YS XXXXX 54 13 20 15 WON YS 490020211A 17 1 to 19 L 20 to 44,500.00 2.447.50 W-2 Wage and Tax 2019 Copy-To Be Filed With Employee's FEDERAL Tax Return This information is benguished to the real Revenue Service Decorate your CORRECTED ff checked) PWYS, CMO MESMO 2019 Miscellaneous Income NEIGHBORHOOD COMMUNITY CENTER 1511 CHERRY STREET YOUR CITY. YS XXXXX 816-555-XXXX $ am 1099-MISC Copy & $ For Recipient FYRST REFINESTRE 09-2014504 201-00-1451 $ RECENTE This LOIS A. HARRISON ndo s 1.550,00 the $ 1312 LOCUST STREET Ofrom woode YOUR CITY, YS XXXXX FARA umano pero maybe income F 1000 MISSO WAAN CORRECTED checked 2 D 2019 Barter Exchange TRADE ONLINE INVESTMENTS 5621 LA HABRA PARKWAY, STE 13 YOUR CITY, YS XXXXX 818-555-XXXX Proceeds From Broker and Transactions 1000-8 Ta on yle XYZ) 100 SHARES AUX 05/05/2017 11/01/2018 RECENSIN Copy $ 2,700.00 $ 3.100.00 09-2014505 For Recipient XXX-XX-0045 $ BRUCE H. HARRISON 1312 LOCUST STREET YOUR CITY, YS XXXXX The portant wloon and being furnished to you we urod to me magne perty other sanction may be pored on your This blend the RS Guest hoe not been eported 12-34567891 CUP 1000-B Koop for your records CORRECTED (checked HECFENT MINERS GP 2019 Mortgage Interest Statement REALTY MORTGAGE COMPANY 691 PLEASANT GROVE YOUR CITY, YS XXXCX XXX-555-XXXX REFENT MEMORST 1090 S 8.241.64 Copy B For Payee Borrower 09-2014506 XXX-XX-0045 5 125,067.00 05/04/2014 $ 5 BRUCE AND LOIS HARRISON eching 1312 LOCUST STREET Cod Pod YOUR CITY, YS XXXXX RE TAX: $2,315 o 10 SLOLLA 1095-B Health Coverage Coo CORRECTED 2019 PIT Www BRUCE HARRISON XXX-XX0046 1312 LOCUST STREET YOUR CITY USA XXXX 09-2014502 USA XXXXX Information About Cortamorpored Coverborg ELM CONSTRUCTION AGENCY GREENWOOD LANE YOUR CITY YS Pere Prande GENERAL INSURANCE COMPANY 09-2014507 1776 TURNOULL CANYON YOUR CITY YS PLIV cordon NOVO (XXX) 662-6543 USA XXXXX NA BRUCE H. HARRISON XXX-XX-0046 N LOS A HARRISON 201-00-1461 XO IXO XO DID DOBE DOBB LYLA DO 3. HARRISON 201-00-2461 OD KEVIN E. HARRISON 201-40-2463 O I The following forms may be used to prepare the return Note: The taxpayers in this scenario may not be required to file all the forms listed below. However, you may find these forms helpful as you prepare the return. Form 1040, U.S. Individual Income Tax Return Schedule 1, Additional Income and Adjustments to Income Schedule 2, Additional Taxes Schedule 3, Additional Credits and Payments Schedule A, Itemized Deductions Schedule C, Profit or Loss from Business Schedule D. Capital Gains and Losses Schedule SE, Self-Employment Tox Form 2441, Child and Dependent Care Expenses Form 8995, Qualified Business income Deduction Simplified Computation 2019 Qualified Business income Deduction Worksheet Form 367, Pald Preporer's Due Diligence Checklist 2019 IRA Deduction Worksheet - Schedule 1, Line 19 2019 Child Tax Credit and credit for other pendents when Taxpayer Information Taxpayer name: Taxpayer SSN: Taxpayer DOB: Taxpayer occupation: Bruce H. Harrison 201-00-0045 April 1, 1977 Contractor Spouse name: Spouse SSN: Spouse DOB: Spouse occupation: Lois A. Harrison 201-00-1451 March 28, 1982 Newscaster Address: Cell phone (T): 1312 Locust Street Your City, YS XXXXX (XXX) 555-6336; Preferred: Anytime; FCC: Yes; OK to call (XXX) 555-6363; Anytime; FCC: Yes; OK to call bhharrison@net.net Iharrison@net.net Cell phone (S): Taxpayer email: Spouse email: Yes Health Insurance Information Did everyone in the household have health insurance in 2019? Total months covered through a state exchange or federal marketplace: Total months covered through an employer-sponsored plan: Was a Form 1095-A issued? 0 12 No Bruce and Lois Harrison are new clients. Last year, they prepared their own return using online software, but this year, they would like professional assistance. They are married and wish to file a joint tax return. Both of their SSNs are valid for work in the U.S. and were received before the original filing due date of their return (including extensions). Both are U.S. citizens. No one may claim them as dependents. Neither is a student. They both wish to designate $3 to the Presidential Election Campaign Fund. Neither is blind or disabled. Bruce and Lois did not suffer any casualty losses during the current tax year. They did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency. Neither Bruce nor Lois have a financial interest in or signature authority over a foreign account. They did not receive a distribution from, nor were they the grantors of or transferorto, a foreign trust. The IRS has not issued any Identity Protection ID Numbers for their return. They did not receive a notice from the IRS or any state or local taxing authority within the last year. Neither Bruce nor Lois provide a driver's license or state identification. Household Information Bruce and Lois own their home. They have two children. Dependent name: Dependent SSN: Dependent DOB: Dependent relationship: Time in household: Gross income: Support: Lyla B. Harrison 201-00-2451 July 12, 2014 Daughter 12 months $0 Does not provide over half of her own support Kevin E. Harrison 201-00-2452 October 15, 2016 Dependent name: Dependent SSN: Dependent DOB: Dependent relationship: Time in household: Gross income: Support: Son 12 months $0 Does not provide over half of his own support Lyla and Kevin lived with Bruce and Lois all year, and they did not have any income. Neither is married or disabled. They are both U.S. citizens. Lyla and Kevin have SSNs that are valid for work in the United States and were received before the due date for the return (including extensions). Bruce and Lois brought in copies of medical records for both children. Adjustments Lois contributed $2,500 to a traditional IRA during the year. She only has one IRA account, and the value of this account on December 31, 2019, was $13,097.85. All of her previous contributions were deductible. Lois has never taken a distribution from this or any other retirement account. Bruce is covered by an employer sponsored retirement plan, but Lois is not. Credits Bruce and Lois paid Little Ones Learning Center $7,200 ($3,600 for each child) to care for Kevin and Lyla while they worked. The center's EIN is 09-2014501. It is located at 1521 West Plain Road, Your City, YS xxxXX. The phone number for the Center is (XXX) 555-0034. Bruce and Lois have documentation substantiating this expense. Self-Employment Income Lois has always been an avid reader, and during the year, she had an opportunity to lead a book club at a nearby community center. The community center paid Lois for this work. At the end of the year, they sent Lois a Form 1099-MISC reporting an amount for nonemployee compensation in box 7 of the form. This form is shown in the Information Documents section. The community center is within walking distance of the couple's home, so Lois did not have any vehicle or travel expenses. Her only business related expense was for $225 in supplies. For purposes of the qualified business income deduction (BID), this is not a specified service trade or business (SSTB). Lois did not pay any qualified wages, nor does she have any qualified business property, or any losses or short-term gains from asset disposition Capital Assets Bruce was unhappy with the performance of an investment he had made in 2017. He sold the shares of stock on November 7, 2019, for fear the stock would continue its downward trend. Information relating to this sale was reported on a Form 1099-8. This form is shown in the Information Documents section. Itemized Deductions Bruce and Lois want to itemize deductions if it will be more beneficial than taking the standard deduction. They bring a Form 1098 reporting mortgage interest and real estate taxes paid on their personal residence. This is shown in the Information Documents section. Bruce and Lois would prefer to take the state income tax deduction rather than the sales tax deduction. They also had the following potentially deductible items for 2019: Item Amount Notes 2018 State balance due $582 Made this payment on April 10, 2019 Cash donation to Cancer Research Foundation $475 Paid March 4, 2019 Information Documents Vartha efile soriano DO BOB numb XXX-XX-0045 Employercin number 09-2014502 C Employers, and ZP 0000 ELM CONSTRUCTION AGENCY 6 GREENWOOD LANE YOUR CITY, YS XXXXX Sofe accurate FASTI Use 13 OMB No 152-0000 Women 39,950.00 SSV W 42,950.00 & Magos and te 42,950.00 7 V 18 2,671.05 w 2,662.90 darwin 622.78 Acade dol 10 Dependent web O'ne and S11 Houses taas one for bot DD 17,485.00 BRUCE H. HARRISON 1312 LOCUST STREET YOUR CITY, YS XXXXX D 3,000.00 124 E' dan DP code 15 Error Dr YS 490020210A 17 1. 19 UG 20 39,950.00 2,197.25 Dupa Downs W-2 Wate and Tax 2019 Statement Copy B-To Be Fled With Employd'. FEDERAL Tax Return This information is being used is the venue Service RE 201-00-1451 09-2014603 ce od code LOCAL NEWS NETWORK 112 NORTHERN STREET YOUR CITY, YS XXXXX our VSTWO OM FAST cefile CE 44,500.00 3,517.79 wed 44,500.00 2,759.00 Mundo de 44,500.00 645.25 7 ed . |-cartalari LOIS A. HARRISON 1312 LOCUST STREET YOUR CITY, YS XXXXX 54 13 20 15 WON YS 490020211A 17 1 to 19 L 20 to 44,500.00 2.447.50 W-2 Wage and Tax 2019 Copy-To Be Filed With Employee's FEDERAL Tax Return This information is benguished to the real Revenue Service Decorate your CORRECTED ff checked) PWYS, CMO MESMO 2019 Miscellaneous Income NEIGHBORHOOD COMMUNITY CENTER 1511 CHERRY STREET YOUR CITY. YS XXXXX 816-555-XXXX $ am 1099-MISC Copy & $ For Recipient FYRST REFINESTRE 09-2014504 201-00-1451 $ RECENTE This LOIS A. HARRISON ndo s 1.550,00 the $ 1312 LOCUST STREET Ofrom woode YOUR CITY, YS XXXXX FARA umano pero maybe income F 1000 MISSO WAAN CORRECTED checked 2 D 2019 Barter Exchange TRADE ONLINE INVESTMENTS 5621 LA HABRA PARKWAY, STE 13 YOUR CITY, YS XXXXX 818-555-XXXX Proceeds From Broker and Transactions 1000-8 Ta on yle XYZ) 100 SHARES AUX 05/05/2017 11/01/2018 RECENSIN Copy $ 2,700.00 $ 3.100.00 09-2014505 For Recipient XXX-XX-0045 $ BRUCE H. HARRISON 1312 LOCUST STREET YOUR CITY, YS XXXXX The portant wloon and being furnished to you we urod to me magne perty other sanction may be pored on your This blend the RS Guest hoe not been eported 12-34567891 CUP 1000-B Koop for your records CORRECTED (checked HECFENT MINERS GP 2019 Mortgage Interest Statement REALTY MORTGAGE COMPANY 691 PLEASANT GROVE YOUR CITY, YS XXXCX XXX-555-XXXX REFENT MEMORST 1090 S 8.241.64 Copy B For Payee Borrower 09-2014506 XXX-XX-0045 5 125,067.00 05/04/2014 $ 5 BRUCE AND LOIS HARRISON eching 1312 LOCUST STREET Cod Pod YOUR CITY, YS XXXXX RE TAX: $2,315 o 10 SLOLLA 1095-B Health Coverage Coo CORRECTED 2019 PIT Www BRUCE HARRISON XXX-XX0046 1312 LOCUST STREET YOUR CITY USA XXXX 09-2014502 USA XXXXX Information About Cortamorpored Coverborg ELM CONSTRUCTION AGENCY GREENWOOD LANE YOUR CITY YS Pere Prande GENERAL INSURANCE COMPANY 09-2014507 1776 TURNOULL CANYON YOUR CITY YS PLIV cordon NOVO (XXX) 662-6543 USA XXXXX NA BRUCE H. HARRISON XXX-XX-0046 N LOS A HARRISON 201-00-1461 XO IXO XO DID DOBE DOBB LYLA DO 3. HARRISON 201-00-2461 OD KEVIN E. HARRISON 201-40-2463 O I The following forms may be used to prepare the return Note: The taxpayers in this scenario may not be required to file all the forms listed below. However, you may find these forms helpful as you prepare the return. Form 1040, U.S. Individual Income Tax Return Schedule 1, Additional Income and Adjustments to Income Schedule 2, Additional Taxes Schedule 3, Additional Credits and Payments Schedule A, Itemized Deductions Schedule C, Profit or Loss from Business Schedule D. Capital Gains and Losses Schedule SE, Self-Employment Tox Form 2441, Child and Dependent Care Expenses Form 8995, Qualified Business income Deduction Simplified Computation 2019 Qualified Business income Deduction Worksheet Form 367, Pald Preporer's Due Diligence Checklist 2019 IRA Deduction Worksheet - Schedule 1, Line 19 2019 Child Tax Credit and credit for other pendents when