You have been hired as a junior accountant at a medium-sized tax and accounting firm. Your manager would like to understand your level of knowledge of preparing a basic tax return. She has provided several client profiles for you to review and would like you to complete a tax return. The firm has found it helpful for new tax professionals to choose which clients tax return theyd like to work on in their initial weeks with the company. Once you select the client you would like to work with from the Client Tax Profile A list found in the Supporting Materials section below, review the clients current year tax package. Refer back to the Tax Organizer you prepared for your selected client in Project One Milestone Two. Determine what information must be used to prepare the clients tax return. Keep in mind some items provided by the client may not be required or applicable for the completion of the tax return you are working on. You may wish to utilize checklists or other guidelines found in the Supporting Materials section to assist you in preparing the clients tax return. Once the tax return is prepared, you will summarize the outcome of the tax return, including the decisions involved in completing the tax return. For example, you will want to identify how required income sources were determined, what relevant deductions were taken, what applicable credits were applied (if any), whether supplement forms were used, and the tax liability for the current tax year. Youll also want to document the outcome of the return, such as whether the taxpayer(s) will obtain a refund or will incur an amount due for the tax year. Note: Please be sure you dont add a value to cells on the 1040 form or any additional schedules or worksheets that do not apply. Leave them blank. For example, if on schedule A, there are no charitable contributions but there are real-estate taxes, you would leave the charitable contributions cell blank and add a value in the real-estate taxes cell. Dont forget to input a value for any lines that are included in the total. Directions Specifically, you must address the following rubric criteria: Part One: Completed 1040 Tax Return Apply relevant sources of income to complete a tax return. Include the following: What income sources should be reported? Determine relevant deductions (standard versus itemized) based on taxpayer circumstances. Consider the following: Does the taxpayer have enough deductions to itemize or is the standard deduction more beneficial? Apply relevant tax credits to a tax return based on the taxpayers position to claim tax credits. Consider the following: Which credits might be applicable to the taxpayer? Are there income limitations for claiming any available tax credits? Calculate the correct tax liability utilizing the appropriate tax table. Complete correct supplemental forms to meet the taxpayer's needs. Part Two: Short Paper Summarize how decisions made have impacted each section of the completed tax return. Include the following in your summary: How were required income sources determined? What relevant deductions were taken? What applicable credits were applied, if any? Were supplemental forms used? How was the correct tax liability calculated for the current year? How was the outcome of the return determined? What to Submit To complete this project, you must submit the following: Completed 1040 Tax Return Submit a completed 1040 Tax Return in PDF format. Short Paper Submit a 1- to 2-page Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style. The title page and reference page are not included in the total page count requirement. Tax Client #1 Ji Bao Descriptors Data Comments Client ID 1111 Primary Taxpayers Legal Name Ji Bao Primary Taxpayers Preferred Pronoun He SSN ***-**-1111 Age 45 Occupation Retail Manager Citizen/U.S. Resident Status U.S. Permanent Resident Primary Residence 616 Langly Road #2C, Gatlinburg, TN 37738 Owned; mortgage Secondary Residence Business Owner Property Ownership 616 Langly Road #2C, Gatlinburg, TN 37738 Languages English Marital Status Single Spouses Legal Name Spouses Preferred Pronoun Spouses Age Spouses Occupation Dependent(s) (# - Relationship) (Name/Age/SSN) 1 - Son Christian Bao (Age 10) (***-**-1112) Income Streams W2 Ji Bao is a single father with one son, Christian, who has lived with him all year. Ji was unmarried at the end of the year. He has full custody of Christian. Ji works at the local hardware store as a retail manager. He also worked part time at the library for several months during the summer and as a server on the weekends. Client 1 Details Ji provides receipts for co-pays paid to his doctor totaling $10,550 for the year. Ji provides Form 1098 reporting $7,685 in mortgage interest and $2,320 in mortgage insurance premiums for his primary residence. Ji reports paying $1,985 in real estate taxes for the year on his primary residence. Je provides a statement from his local church for cash contributions of $3,000 for the year. Ji provides receipts for his sons school uniforms totaling $500 for the year. The general sales tax paid was $1,116. Client 1 W2 Jis W2 from the local hardware store contained information in the following boxes: Wages (box 1) $49,715 Federal W/H (box 2) $4,707 Social Security Wages (box 3) $49,715 Social Security W/H (box 4) $3,082 Medicare Wages (box 5) $49,715 Medicare W/H (box 6) $721 Jis W2 from the local library contained information in the following boxes: Wages (box 1) $16,222 Federal W/H (box 2) $0 Social Security Wages (box 3) $16,222 Social Security W/H (box 4) $1,006 Medicare Wages (box 5) $16,222 Medicare W/H (box 6) $235 Jis W2 from the local restaurant contained information in the following boxes: Wages (box 1) $22,288 Federal W/H (box 2) $1,560 Social Security Wages (box 3) $12,555 Social Security W/H (box 4) $1,382 Medicare Wages (box 5) $16,222 Medicare W/H (box 6) $323 Tips $9,733