What is the amount of tax calculated and shown on Holly's Qualified Dividends and Capital Gain Tax Worksheet?
a. 0
b. 87
c. 92
d. 122
What is the total amount of Holly's itemized deductions?
a. 7750
b. 10,300
c. 21,349
d. 21,639
What is the amount of Holly's long term capital gain that will recieve favorable tax treatment, as shown on her Qualified Dividends and Capital Gain Tax Worksheet?
a. 87
b. 92
c.442
d.612
What is the amount of Holly's long term capital gain reported on her Schedule D?
a. 0
b. 150
c. 170
d. 6550
(Data is in images attached)
H&R BLOCK Senior Tax Specialist- Case Study 1 Prepare a 2017 tax return for Holly Sanders using BlockWorks in PRACTICE mode Access and use the BlockWorks shell return by entering the following four-digit code 6001. A unique SSN will be generated by the software. Be sure to note this unique shell SSN so that you will be able to re-access this return. The return should provide the highest refund or lowest tax liability available to Holly for the tax year. After the return preparation is complete, return to the test and answer the associated questions Taxpayer Information Taxpayer name Taxpayer SSN Holly Sanders XXX-XX-6001 SSN Taxpayer DOB Health care coverage March 10, 1985 12 months through employer 0- months of no coverage 1106 Reinhardt Drive Your City, YS XXXxx Taxpayer owns her home (XXX) 555-6010; Preferred (morning); FCC (Yes); OK to Call (XXX) 566-6001 (XXX) 577-6011 holly.sanders@net.net Address Living arrangement Landline phone Work phone Cell phone Taxpayer email Taxpayer occupation Holly Sanders is single. Her brother (a CPA) has done her taxes in prior years. This year, wishing to feel more independent, Holly decided to try H&R Block's tax service Her SSN is valid for work in the U.S. and was received before the original filing due date of her return (including extensions). She is a U.S. citizen. No one may claim her as a dependent. Holly does not wish to designate $3 to the Presidential Election Campaign Fund. She is not blind or disabled. She is not a student. She did not provide her driver's license or state identification Sales Representative Holly does not have authority over a foreign account, and she did not receive a distribution from, nor was she the grantor of or transferor to, a foreign trust. She consents to the use of her tax return information for other products and services. She has not received a notice from the IRS or any state or local taxing authority within the last year. The IRS has not issued an Identity Protection ID Number for her return Holly brings several tax-related documents to the tax appointment. Household Information Holly is trying to plan wisely for her financial future, and she has investment income in addition to wages. She brings a consolidated reporting statement for investment income to her tax appointment. Employee Business Expense Information Holly works as a sales representative for a small company that does not have an employee business expense reimbursement policy. She had the following unreimbursed employee business expenses in 2017, and she would like to deduct these expenses on her tax return, if possible. She has documentation to support all of her expenses Parking and tolls Professional dues $135 $175 While traveling away from home, she incurred these additional expenses, none of which were reimbursed by her employer: Airfare Taxis Lodging Meals Dry cleaning Vehicle Information $1,350 $120 $750 $495 $45 In addition, Holly used her personal vehicle for business purposes. No other vehicle is available for personal use, and her car is available for personal use during off-duty hours. She has written evidence to support the business use claimed. Her 2015 Honda Accord was purchased new for $24,000 and placed in service on January 1, 2016. She drove a total of 18,000 miles in 2017, 8,600 of which were for business. She has no commuting miles. The car was not acquired through trade-in and was not converted to non-business use. Holly owned and used the car for 12 months in 2017. Use the standard mileage rate to calculate Holly's automobile expenses. Income and Deductions Information relating to Holly's wages, health care coverage, and Schedule A deductions (with the exception of the unreimbursed expenses) has been pre-entered for you in the shell return. Holly paid $250 for tax preparation services in 2017. Her consolidated reporting statement for investment income is shown below Information Documents e file xxx-XX-6001 MB No 1545-0008 FASTI Us 60-6001001 c Employer's name, address INNOVATIVE SOLUTIONS 201 BROADWAY 88,500.00 13,350 88,500.00 wages and ps taoc witheld 88,500.00 1.283.25 secunty sps ips CITY,YS XXxxx code Test nam HOLLY J SANDERS 1106 REINHARDT DRIVE .850.00 CITY YS 126 Employeo's address and ZIP code 16 tate D umber 60601001 noome ta 18 Local wages,ps 975 YS 8.500 W-2 statement Tax 2017 L Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being fumished to the Internal Revenue Service ECTED Mortgage 2017 HOME LENDING COMPANY 4021 OAK TRAFFCAY YOUR CITY, YS XXXXX Form 1008 Copy B For Payerl ,750.00 dentification numbe 163.402.00 01/02/2013 The Iformation in boes 60-6001002 xxx-xx-6001 rough 10 important tax mished th the requred to earetum, nction may be impoed HOLLY SANDERS negigince penalty or other 1106 REINHARDT DRIVE If Yes.' boxchecked If No"see box 8or9, below or tivis mortgage intereet for thene points, eporied Addross of property soouring monignge YOUR CITY,YS xxxXX 1106 Reinhardt Drive REAL ESTATE TAX 3,750 RPG Financial 2017 IRS CONSOLIDATED REPORTING STATEMENT 0000 555-876 TOTALS FOR TAX VEAR 201 54845 INTE REST INCOME 51902 442 10 $0.00 $0.00 $0.00 $0.00 FORDGN TAK PAID 7 FORDIGN COUNTRY OR US POSSESSION 50.00 50.00 $9.29 10 MARKET OSCOUNT CASH IQUIDATON DISTRISUTIONS STATE STATE 50.00 12 STATt STATE TAX WITHHELD FOIALS iO8 IAX YLAR 2017 OTHER $0.00 $0.00 $0.00 4 FEDERAL INCOME TAK WiTELD So.oc 50.00 RPG Financial 2017 IRS CONSOLIDATED REPORTING STATEMENT Account Number: 112341234 The proceeds stated on this page are reported net of commissions and option premiums. However, option premiums are built into the gain or loss amourts computed below. If you have securities sold because of an option grarted or acquired before 2017, we have included option premium information as a separate column on this page, to help you reconcile to the gain/loss amount shown on this statement. Should you elect to report net of option premiums, you must adjust your gain/loss amourts on your Form 8949 Stock or Date of Other Symbol Accuisition Date of Sale r Gross Proceeds Cost or Other Federal Income Exchange Wash Sale Amount Number Description CUSI Basis 1 100 sh 38798G334 GHI $6,550.00 $5,750.00 $6,550.00 $5,750.00 $0.00 $0.00 $0.00 Stock or Other Symbol Acquisition Date of Sale or Exchange Date of Cost or Other Basis Gross Proceeds Federal Income Wash Sale Amount $0.00 $0.00 $000 $0.00 $0.00 17 -1095-B CORECTED TIVE H&R BLOCK Senior Tax Specialist- Case Study 1 Prepare a 2017 tax return for Holly Sanders using BlockWorks in PRACTICE mode Access and use the BlockWorks shell return by entering the following four-digit code 6001. A unique SSN will be generated by the software. Be sure to note this unique shell SSN so that you will be able to re-access this return. The return should provide the highest refund or lowest tax liability available to Holly for the tax year. After the return preparation is complete, return to the test and answer the associated questions Taxpayer Information Taxpayer name Taxpayer SSN Holly Sanders XXX-XX-6001 SSN Taxpayer DOB Health care coverage March 10, 1985 12 months through employer 0- months of no coverage 1106 Reinhardt Drive Your City, YS XXXxx Taxpayer owns her home (XXX) 555-6010; Preferred (morning); FCC (Yes); OK to Call (XXX) 566-6001 (XXX) 577-6011 holly.sanders@net.net Address Living arrangement Landline phone Work phone Cell phone Taxpayer email Taxpayer occupation Holly Sanders is single. Her brother (a CPA) has done her taxes in prior years. This year, wishing to feel more independent, Holly decided to try H&R Block's tax service Her SSN is valid for work in the U.S. and was received before the original filing due date of her return (including extensions). She is a U.S. citizen. No one may claim her as a dependent. Holly does not wish to designate $3 to the Presidential Election Campaign Fund. She is not blind or disabled. She is not a student. She did not provide her driver's license or state identification Sales Representative Holly does not have authority over a foreign account, and she did not receive a distribution from, nor was she the grantor of or transferor to, a foreign trust. She consents to the use of her tax return information for other products and services. She has not received a notice from the IRS or any state or local taxing authority within the last year. The IRS has not issued an Identity Protection ID Number for her return Holly brings several tax-related documents to the tax appointment. Household Information Holly is trying to plan wisely for her financial future, and she has investment income in addition to wages. She brings a consolidated reporting statement for investment income to her tax appointment. Employee Business Expense Information Holly works as a sales representative for a small company that does not have an employee business expense reimbursement policy. She had the following unreimbursed employee business expenses in 2017, and she would like to deduct these expenses on her tax return, if possible. She has documentation to support all of her expenses Parking and tolls Professional dues $135 $175 While traveling away from home, she incurred these additional expenses, none of which were reimbursed by her employer: Airfare Taxis Lodging Meals Dry cleaning Vehicle Information $1,350 $120 $750 $495 $45 In addition, Holly used her personal vehicle for business purposes. No other vehicle is available for personal use, and her car is available for personal use during off-duty hours. She has written evidence to support the business use claimed. Her 2015 Honda Accord was purchased new for $24,000 and placed in service on January 1, 2016. She drove a total of 18,000 miles in 2017, 8,600 of which were for business. She has no commuting miles. The car was not acquired through trade-in and was not converted to non-business use. Holly owned and used the car for 12 months in 2017. Use the standard mileage rate to calculate Holly's automobile expenses. Income and Deductions Information relating to Holly's wages, health care coverage, and Schedule A deductions (with the exception of the unreimbursed expenses) has been pre-entered for you in the shell return. Holly paid $250 for tax preparation services in 2017. Her consolidated reporting statement for investment income is shown below Information Documents e file xxx-XX-6001 MB No 1545-0008 FASTI Us 60-6001001 c Employer's name, address INNOVATIVE SOLUTIONS 201 BROADWAY 88,500.00 13,350 88,500.00 wages and ps taoc witheld 88,500.00 1.283.25 secunty sps ips CITY,YS XXxxx code Test nam HOLLY J SANDERS 1106 REINHARDT DRIVE .850.00 CITY YS 126 Employeo's address and ZIP code 16 tate D umber 60601001 noome ta 18 Local wages,ps 975 YS 8.500 W-2 statement Tax 2017 L Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being fumished to the Internal Revenue Service ECTED Mortgage 2017 HOME LENDING COMPANY 4021 OAK TRAFFCAY YOUR CITY, YS XXXXX Form 1008 Copy B For Payerl ,750.00 dentification numbe 163.402.00 01/02/2013 The Iformation in boes 60-6001002 xxx-xx-6001 rough 10 important tax mished th the requred to earetum, nction may be impoed HOLLY SANDERS negigince penalty or other 1106 REINHARDT DRIVE If Yes.' boxchecked If No"see box 8or9, below or tivis mortgage intereet for thene points, eporied Addross of property soouring monignge YOUR CITY,YS xxxXX 1106 Reinhardt Drive REAL ESTATE TAX 3,750 RPG Financial 2017 IRS CONSOLIDATED REPORTING STATEMENT 0000 555-876 TOTALS FOR TAX VEAR 201 54845 INTE REST INCOME 51902 442 10 $0.00 $0.00 $0.00 $0.00 FORDGN TAK PAID 7 FORDIGN COUNTRY OR US POSSESSION 50.00 50.00 $9.29 10 MARKET OSCOUNT CASH IQUIDATON DISTRISUTIONS STATE STATE 50.00 12 STATt STATE TAX WITHHELD FOIALS iO8 IAX YLAR 2017 OTHER $0.00 $0.00 $0.00 4 FEDERAL INCOME TAK WiTELD So.oc 50.00 RPG Financial 2017 IRS CONSOLIDATED REPORTING STATEMENT Account Number: 112341234 The proceeds stated on this page are reported net of commissions and option premiums. However, option premiums are built into the gain or loss amourts computed below. If you have securities sold because of an option grarted or acquired before 2017, we have included option premium information as a separate column on this page, to help you reconcile to the gain/loss amount shown on this statement. Should you elect to report net of option premiums, you must adjust your gain/loss amourts on your Form 8949 Stock or Date of Other Symbol Accuisition Date of Sale r Gross Proceeds Cost or Other Federal Income Exchange Wash Sale Amount Number Description CUSI Basis 1 100 sh 38798G334 GHI $6,550.00 $5,750.00 $6,550.00 $5,750.00 $0.00 $0.00 $0.00 Stock or Other Symbol Acquisition Date of Sale or Exchange Date of Cost or Other Basis Gross Proceeds Federal Income Wash Sale Amount $0.00 $0.00 $000 $0.00 $0.00 17 -1095-B CORECTED TIVE
