6-1 Final Project Practice: Tax Return PDF

Preview

Summary

Even though this is a non-graded activity, you will need to participate and view the case study and data sets in Cengage to complete Final Project Two. This is a draft version of the tax return you will complete for your final project...

Description

Complete the Butler's Form 1040. Form

Department of the Treasury—Internal Revenue Service

(99)

1040 U.S. Individual Income Tax Return 2018 OMB No. 1545-0074 IRS Use Only Filing status: Married filing jointly Last name

Your first name and initial

Your social security number

Daniel B. Butler

111-11-1112

Your standard deduction: None If joint return, spouse's first name and initial

Last name

Spouse's social security

Freida C. Butler

number 123-45-6780 Full-year

Spouse standard deduction: ◻ Someone can claim your spouse as a dependent Spouse was born before January 2, 1954

◻ Spouse is blind

health care

◻ Yes

◻ Spouse itemizes on a

coverage or exempt (see

separate return or you were dual-status alien

inst.) Home address (number and street). If you have a P.O. box, see instructions.

Apt. no. Presidential Election

625 Oak Street

Campaign (see inst.)

None

City, town or post office, state, and ZIP code. If you have a foreign address, attach

If more than four

Schedule 6.

dependents, see inst. and

Corbin, KY 40701

✓ here ► ◻

Dependents (see

(2) Social security

(3) Relationship to

number

you

instructions): (1) First name

Last name

(4) ✓ if qualifies for (see inst.): Child tax

Credit for other

credit

dependents

Gina Butler

123-45-6788

Child

No

Yes

Willie Butler

123-45-6787

Child

No

Yes

Sign Here

◻

◻

◻

◻

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Joint return? See

Your signature

Date Your

instructions. Keep a copy for your records.

► Spouse's signature. If a joint return, both must sign.

Paid Preparer Use

If the IRS sent you an Identity

occupation

Protection PIN, enter it here

Manager

(see inst.)

Date Spouse's

If the IRS sent you an Identity

occupation

Protection PIN, enter it here

Salesperson

(see inst.)

Preparer's

Preparer's

name

signature

PTIN Firm's EIN

Check if: ◻ 3rd Party

Self-Prepared

Only

Firm's name ►

Phone no.

Designee ◻ Self-employed

Firm's address ►

BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.

Form 1040 (2018)

Form 1040 (2018) Daniel B. and Freida C. Butler 111-11-1112 Page 2 1

Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . .......

1

160,000

2a Tax-exempt interest

2a

b

Taxable interest

2b

900 3a Qualified dividends

3a

1,982 b

Ordinary dividends

4,200

3b

Attach Form(s) W-2. Also

4a IRAs, pensions, and annuities 4a b Taxable amount attach Form(s) W-2G and 1099- 5a Social security benefits 5a b Taxable amount R if tax was withheld. 6 Total income. Add lines 1 through 5. Add any amount from

4,200

4b 5b

Schedule 1, line 22 7,000 .......................................... 7

6 173,182

Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 7 173,182

36, from line 6 . . . . . . . . . . . . . . Standard Deduction for– • Single or married filing

8

separately, $12,000 • Married filing jointly or

9

Qualifying widow(er), $24,000 • Head of household, $18,000 • If you checked any box under

10

Standard deduction or itemized deductions (from Schedule A) ........... Qualified business income deduction (see instructions) . . . . . . . . . ........... Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- . . . .

8

24,000

9

10

149,182

11 a Tax (see inst)

Standard deduction, see

24,405

instructions.

(check if any from: 2 ◻ Form 4972

1 ◻ Form(s) 8814 3◻

)

b Add any amount from Schedule 2 and check here . . . . . . . . . . . ......►◻

11

24,405

12

1,000

12 a Child tax credit/credit for other dependents 1,000 b Add any amount from Schedule 3 and check here . . . . . . . . . . . ......►◻ 13

Subtract line 12 from line 11. If zero or less, enter -0- . . . . . . . . . ...........

14 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . . . . . . . . .........

13 23,405 14

15 Total tax. Add lines 13 and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ........... 16

23,405

Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . ............

17 Refundable credits:

16 23,400

a EIC (see inst.)

b Sch 8812

c Form 8863

Add any amount from Schedule 5 8,000 17

.................. 18

Refund

19

Add lines 16 and 17. These are your total payments . . . . . . . . . . . ..........

8,000

18 31,400

If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19 7,995

20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► ◻ Direct deposit?

► b Routing number X X X X X X X X X

► c Type:

◻ Checking

20a 7,995

◻ Savings

See instructions. ► d Account number X X X X X X X X X X X X X X X X X 21

Amount of line 19 you want applied to your 2019 estimated tax . . . . . . . ...........►

Amount

22

21

Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

You Owe

22

► 23

Estimated tax penalty (see instructions) . . . . . ►

23

Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2018)

Complete Butler's Schedule 1 below for 2018. OMB No.

Additional Income and Adjustments

1545-0074

SCHEDULE 1

to Income

2018

(Form 1040) Department of the Treasury Internal Revenue Service

Attachment

► Attach to Form 1040. ► Go to www.irs.gov/Form1040 for instructions and

Sequence No. 01

the latest information.

Your social Name(s) shown on Form 1040

security

Daniel B. and Freida C. Butler

number 111-111112

Additional Income

19b

Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . .

19b 10

11 Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . .

12

13 Capital gain or (loss). Attach Schedule D if required. If not required, check here 13

►◻ 14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . .

14

15a Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15b

16a Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16b

17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach 17

Schedule E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . .

18

19 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

20a Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20b

21 Other income. List type and amount ► Prize

21 7,000

22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23

Adjustments to Income

23 Educator expenses . . . . . . . . . . . . . . . . . . .

22 7,000 23

24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . .

24

25 Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . .............

25

26 Moving expenses for members of the Armed Forces. Attach Form 3903 . . .........

26

27 Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . ............ 28 Self-employed SEP, SIMPLE, and qualified plans

27 28

29 Self-employed health insurance deduction . . . .

29

30 Penalty on early withdrawal of savings . . . . .

30

31a Alimony paid b Recipient's SSN ►

31a

32 IRA deduction . . . . . . . . . . . . . . . . . . . .

32

33 Student loan interest deduction . . . . . . . . .

33

34 Reserved . . . . . . . . . . . . . . . . . . . . . . . . .

34

35 Reserved . . . . . . . . . . . . . . . . . . . . . . . . .

35

36 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36

BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040) 2018

Complete Butler's Schedule 5 below for 2018.

Other Payments and Refundable SCHEDULE 5

Credits

Revenue Service

1545-0074

2018

(Form 1040) Department of the Treasury Internal

OMB No.

▶ Attach to Form 1040. ▶ Go to www.irs.gov/Form1040 for instructions and the latest information.

Attachment Sequence No.05 Your social security

Name(s) shown on Form 1040

number

Daniel B. and Freida C. Butler

111-11-1112

Other Payments

65

and Refundable Credits

66

67a

b

Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... 2018 estimated tax payments and amount applied from 2018 return . . ......

65

66 8,000

Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......

67a

67b

68- Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6869 70

......

69

Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . . . . . . . . ........

71 72

Amount paid with request for extension to file (see instructions) . . . . . ...... Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . . . . ........

73 74

Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . . . . . . . . ....... Credits from Form:

a ◻ 2439

b ◻ Reserved

c ◻ 8885

70 71

72 73

74

d◻ 75

Add the amounts in the far right column. These are your total other payments and refundable credits. Enter here and include on Form 1040, line 17 . . . . . . .

75

8,000

BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 5 (Form 1040) 2018

Complete the Butler's Schedule B for 2018. OMB No.

Interest and Ordinary Dividends

SCHEDULE B

1545-0074

2018

(Form 1040) ▶ Go to www.irs.gov/ScheduleB for instructions and

Department of the Treasury Internal

the latest information.

Revenue Service (99)

▶ Attach to Form 1040. Name(s) shown on return

Attachment Sequence No. 08

Your social security number

Daniel B. and Freida C. Butler

111-11-1112

Part I

1 List name of payer. If any interest is from a sellerfinanced mortgage and the buyer used the property as a

Interest

Amount

personal residence, see the instructions and list this interest first. Also, show that buyer's social security

(See instructions and the instructions for

number and address ▶

Form 1040, line 2b.)

FIRST BANK 382

Note: If you received a Form 1099-INT, SECOND BANK

Form 1099-OID, or substitute statement

1,600

from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 1

2

Add the amounts on line 1 . . . . . . . . . . . . . . . . . . . . . ..................

2 1,982

3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 . . . . . . . . . . . . . . ............................... 4

Subtract line 3 from line 2. Enter the result here and on Form 1040, line 2b ▶

Note: If line 4 is over $1,500, you must complete Part III. Part II

3

4 1,982 Amount

5 List name of payer ▶ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________

Ordinary Dividends

(See instructions and the instructions for Form 1040, line 3b.)

Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm,

CSX 4,200

5

list the firm's name as the payer and enter the ordinary dividends shown on that form.

6

Add the amounts on line 5. Enter the total here and on Form 1040, line 3b ▶

6 4,200

Note: If line 6 is over $1,500, you must complete Part III. Part III

You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.

Foreign

Yes No

7a At any time during 2018, did you have a financial interest in or signature authority over a

Accounts

financial account (such as a bank account, securities account, or brokerage account)

and Trusts

located in a foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............

(See

If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial

instructions.)

Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form

X

114 and its instructions for filing requirements and exceptions to those requirements . . . . . ...... b If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located ▶ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ 8 During 2018, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes," you may have to file Form 3520. See instructions . . . . . . . . .

X

BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule B (Form 1040) 2018

Qualified Dividends and Capital Gain Tax

Keep for Your

Worksheet—Line 11a

Records

Before you

✔ See the earlier instructions for line 10 to see if you can use this worksheet to figure your tax.

begin:

✔ Before completing this worksheet, complete Form 1040 through line 10. ✔ If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Schedule 1.

1. Enter the amount from Form 1040, line 10. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet

1. 149,182

(Taxable income)

2. Enter the amount from Form 1040, line 3a* . . . . . . . . . . . . . . .

2. 4,200

3. Are you filing Schedule D?* ◻ Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-

3. 0

◻ No Enter the amount from Schedule 1, line 13 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. 4,200

5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter -0- . . . . . . . . . .....................

0

5.

6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . .

6.

.

4,200

7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . .

7.

.

144,982

8. Enter: $38,600 if single or married filing separately, $77,200 if married filing jointly or qualifying widow(er),

.....

8.

..... 77,200

. $51,700 if head of household. 9. Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

.

77,200

10. Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. .

77,200

11. Subtract line 10 from line ...