Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2019.
They have three children, Ashley, age 9; Patrick, age 6; and John, age 17.
Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-99-1234; Patrick,789-56-4321; John, 123-45-6789.
Taylor works part-time as a paralegal.
She earned $31,000 in 2019.
Income Taxes: $4,200 withheld.
Interest received from Local Bank: $6,575.
Estimated tax payments: $25,000.
$350 paid with their 2018 state tax return.
Jacob and Taylor bought their first house in 2019.
Home mortgage interest: $12,246.
Property tax: $12,230.
Federal income withholding: $2,350.
$435 to rent a moving truck.
$8,000 to put new siding on the house.
$11,600 for child care expenses ($5,800 for each child).
It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98-7654321).
Taylor is a part-time student at Ball State University in Muncie.
She received a 1098-T indicating tuition and fees for 2019 in the amount of $6,011.
Health insurance for the family, through Taylor’s job, costs $7,500 for all 12 months of 2019.
They paid deductibles and co-payments of $2,550.
Complete the following:
Read the information in the scenario below.
Download the appropriate forms and publications from IRS.gov.
Enter information from Assessment 2, Schedules C and SE, into the 1040 form.
Apply the rules for adjustments to adjusted gross income.
Enter applicable information from the scenario into the 1040 form.
Interpret official rules and instructions to record correct entries on the tax form.
Calculate the AGI for the Weavers.
Submit the tax form.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 2: Analyze the basics of individual income tax return preparation.
Instructions: Inclusions, Exclusions, and AGI &…
Analyze official rules and instructions to correctly calculate deductible self-employment taxes.
Interpret official rules and instructions to record correct entries on tax forms.
Apply rules and instructions to correctly compute AGI for the year.