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Using the information provided in each link below, complete three tax returns for the following clients (Tax Return 1, 2, and 3) in TaxAct: Robert

Using the information provided in each link below, complete three tax returns for the following clients (Tax Return 1, 2, and 3) in TaxAct: Robert and Amy Pax; Heather and Nick Johnson; and Kiara and Brock Smith.

Robert and Amy Pax

Following is a list of information for Robert and Amy Pax for the tax year 2019. Robert and Amy are married and have three children, Alice, Bryson, and Carl. They live at 500 Main Street, Phoenix, AZ 85021.

Robert is a counselor working for a company called Healthy U. Amy works part-time as a pharmacy tech at Walgreens.

Here are their social security numbers and birthdates:

Name

Social Security Number

Birthdate

Robert

123-56-3214

1/15/1988

Amy

564-52-6363

2/23/1990

Alice

558-99-3336

5/5/2013

Bryson

120-33-4566

6/23/2015

Carl

880-11-2323

8/9/2017

Forms:

Robert Pax W2

Amy Pax W2

Form 1098

Key data to enter for the return:

  • Eyeglasses and exm for Alice $500
  • Orthodontic work for Bryson to correct a congenital defect $4,000
  • State income taxes paid with last years tax return $500
  • Property taxes on home $2,100
  • Property taxes on automobile $400
  • Interest on credit cards $300
  • Cash contribution to church $3,000

In addition to the above, on September 17, Robert and Amy donate some Beta Trader, Inc. stock to Lakeville Community College. Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $700. Robert and Amy had purchased the stock on November 7, 2004 for $300.

Compute Robert and Amys income tax liability for 2019 using Form 1040, Schedules A and B, and Form 8283, if necessary.image text in transcribedimage text in transcribedimage text in transcribed

2019 form w-2 a Employee's social security number OMB No. XStandard W-2 (Typed or computer generated) 1545-0008 123-56-3214 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 86-025431 50,400.od 2,314.34 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Healthy U 50,400.00 3,124.80 Employer's address 555 W Van Buren Street 5 Medicare w ages and tips 6 Medicare tax withheld Employer's city Phoenix 50,400.00 730.80 State AZ ZIP code 85021 7 Social security tips 8 Allocated tips Employer's foreign country 0.00 0.00 9 Verification code 10 Dependent care benefits Foreign province/county 0.00 Foreign postal code 11 Nonqualified plans Amount 0.0d 0.00 d Control number 13 Statutory employee 0.00 e Employee's first name and initial Retirement plan 0.00 Robert Employee's last name Suff. Third-party sick pay 0.00 Pax 0.00 f Employee's address 14 See expanded 500 Main Street section below. 0.00 Employee's city State ZIP code 0.00 Phoenix AZ 85021 Employee's foreign country 0.00 12 code Foreign province/county Foreign postal code 15 State State ID No. 86-025431 20 Local name 16 State w ages 17 State inc tax 18 Local w ages 19 Local W/H 50,400.00 907.20 0.00 0.00 AZ 2019 Form w-2 a Employee's social security number OMB No. X Standard W-2 (Typed or computer generated) 1545-00081 564-52-6363 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 77-328560 40,317.63 2,841.37 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Walgreens 40,317.63 2,499.69 Employer's address 200 N Central 5 Medicare w ages and tips 6 Medicare tax withheld Phoenix 40,317.63 584.61 Employer's city State ZIP code 7 Social security tips 8 Allocated tips 85015 0.00 0.00 Employer's foreign country 9 Verification code 10 Dependent care benefits 0.00 12 Code Amount Foreign province/county Foreign postal code 11 Nonqualified plans 0.00 19,000.08 d Control number 13 Statutory employee o 2,500.00 e Employee's first name and initial Retirement plan X 0.00 Amy Employee's last name Third-party sick pay Suff. 0.00 Pax AZ DD W 0.00 14 See expanded section below. 0.00 State ZIP code f Employee's address 500 Main Street Employee's city Phoenix Employee's foreign country 0.00 AZ 85021 0.00 Foreign province/county Foreign postal code 115 State State ID No. AZ 77328560 16 State w ages 17 State inc tax 18 Local w ages 19 Local W/H 20 Local name 40,317.63 1,088.60 0.0d 0.00 W-2 wage and Tax Statement 2019 Department of the Treasury Internal Revenue Service Recipient's/Lender's TIN Payer's/Borrow er's TIN 67-123456 123-56-3214 Recipient's/Lender's name LOANCARE Recipient's/Lender's address PO BOX 8068 Recipient's/Lender's city State ZIP code VIRGINIA BEACH VA 23450 Recipient's/Lender's foreign country property may apply. Also 2019 *Caution:The amount show n may not be fully deductible by you. Limits based on the loan OMB No. 1545-0901 amount and the cost and Mortgage value of the secured Interest interest to the extent it Statement w as incurred by you, actually paid by you, and not reimbursed by Form 1098 another person 1 Mortgage interest received from payer(s)borrow er(s)* 6,485. 2 Outstanding mortgage principal as of 1/1/2019 Lender foreign province/county Foreign postal code Recipient's/Lender's telephone number 3 Mortgage origination date Payer's/Borrower's name Robert Pax Street address (including apt. no.) 500 Main Street City or town State Phoenix Foreign country ZIP code 85021 AZ 4 Refund of overpaid interest (see instructions on whether to report as Other Income on Form 1040.) 0. 5 Mortgage insurance premiums 2,139. 6 Points paid on purchase of principal residence 0 7 If address of property securing mortgage is the same as PAYER'S/BORROWER'S address, the box is checked. or the address or description is entered in box 8. 8 Address of property securing mortgage (see instructions) Foreign province/county Foreign postal code Account number City or town State ZIP code 10 Other 9 Number of properties securing the mortgage Description of the property 2019 form w-2 a Employee's social security number OMB No. XStandard W-2 (Typed or computer generated) 1545-0008 123-56-3214 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 86-025431 50,400.od 2,314.34 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Healthy U 50,400.00 3,124.80 Employer's address 555 W Van Buren Street 5 Medicare w ages and tips 6 Medicare tax withheld Employer's city Phoenix 50,400.00 730.80 State AZ ZIP code 85021 7 Social security tips 8 Allocated tips Employer's foreign country 0.00 0.00 9 Verification code 10 Dependent care benefits Foreign province/county 0.00 Foreign postal code 11 Nonqualified plans Amount 0.0d 0.00 d Control number 13 Statutory employee 0.00 e Employee's first name and initial Retirement plan 0.00 Robert Employee's last name Suff. Third-party sick pay 0.00 Pax 0.00 f Employee's address 14 See expanded 500 Main Street section below. 0.00 Employee's city State ZIP code 0.00 Phoenix AZ 85021 Employee's foreign country 0.00 12 code Foreign province/county Foreign postal code 15 State State ID No. 86-025431 20 Local name 16 State w ages 17 State inc tax 18 Local w ages 19 Local W/H 50,400.00 907.20 0.00 0.00 AZ 2019 Form w-2 a Employee's social security number OMB No. X Standard W-2 (Typed or computer generated) 1545-00081 564-52-6363 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 77-328560 40,317.63 2,841.37 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Walgreens 40,317.63 2,499.69 Employer's address 200 N Central 5 Medicare w ages and tips 6 Medicare tax withheld Phoenix 40,317.63 584.61 Employer's city State ZIP code 7 Social security tips 8 Allocated tips 85015 0.00 0.00 Employer's foreign country 9 Verification code 10 Dependent care benefits 0.00 12 Code Amount Foreign province/county Foreign postal code 11 Nonqualified plans 0.00 19,000.08 d Control number 13 Statutory employee o 2,500.00 e Employee's first name and initial Retirement plan X 0.00 Amy Employee's last name Third-party sick pay Suff. 0.00 Pax AZ DD W 0.00 14 See expanded section below. 0.00 State ZIP code f Employee's address 500 Main Street Employee's city Phoenix Employee's foreign country 0.00 AZ 85021 0.00 Foreign province/county Foreign postal code 115 State State ID No. AZ 77328560 16 State w ages 17 State inc tax 18 Local w ages 19 Local W/H 20 Local name 40,317.63 1,088.60 0.0d 0.00 W-2 wage and Tax Statement 2019 Department of the Treasury Internal Revenue Service Recipient's/Lender's TIN Payer's/Borrow er's TIN 67-123456 123-56-3214 Recipient's/Lender's name LOANCARE Recipient's/Lender's address PO BOX 8068 Recipient's/Lender's city State ZIP code VIRGINIA BEACH VA 23450 Recipient's/Lender's foreign country property may apply. Also 2019 *Caution:The amount show n may not be fully deductible by you. Limits based on the loan OMB No. 1545-0901 amount and the cost and Mortgage value of the secured Interest interest to the extent it Statement w as incurred by you, actually paid by you, and not reimbursed by Form 1098 another person 1 Mortgage interest received from payer(s)borrow er(s)* 6,485. 2 Outstanding mortgage principal as of 1/1/2019 Lender foreign province/county Foreign postal code Recipient's/Lender's telephone number 3 Mortgage origination date Payer's/Borrower's name Robert Pax Street address (including apt. no.) 500 Main Street City or town State Phoenix Foreign country ZIP code 85021 AZ 4 Refund of overpaid interest (see instructions on whether to report as Other Income on Form 1040.) 0. 5 Mortgage insurance premiums 2,139. 6 Points paid on purchase of principal residence 0 7 If address of property securing mortgage is the same as PAYER'S/BORROWER'S address, the box is checked. or the address or description is entered in box 8. 8 Address of property securing mortgage (see instructions) Foreign province/county Foreign postal code Account number City or town State ZIP code 10 Other 9 Number of properties securing the mortgage Description of the property

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