Enclosed.
Microsoft Word - Tax Return Project In this scenario, you will practice entering the following: Form W‐2 income Retirement income reported on Form 1099‐R Income reported on Forms 1099‐INT and 1099‐DIV Sale of stock reported on Form 1099‐B Business income and expenses Rental property Tax Return Project ACCTG 310 SCENARIO INFORMATION Greg and Danielle Miller live with their children in Berrysburg, PA. Both enjoy good health and eyesight. Greg owns and operates a landscaping business and during winter months, when business is slow, he works as a substitute teacher. Danielle is a firefighter for the City of Harrisburg and is retired from the United States Army. TAXPAYER INFORMATION NAME Greg Miller SSN 434‐11‐3311 DATE OF BIRTH 02‐22‐1977 OCCUPATION Landscaper SPOUSE INFORMATION NAME Danielle Miller SSN 456‐87‐5432 DATE OF BIRTH 05‐01‐1978 OCCUPATION Firefighter Address: 55 Cedar Crest Lane, Berrysburg, PA 17005 DEPENDENT INFORMATION NAME Colt Miller (son) SSN 598‐01‐2345 DATE OF BIRTH 12‐16‐2016 NAME Paige Miller (daughter) SSN 554‐33‐2411 DATE OF BIRTH 06‐12‐2019 Instructions This practice return will help you become more familiar with individual return preparation. Use the scenario information and the attached source documents to complete the 2021 Federal Form 1040 and all schedules necessary which may include: Schedule 1 Form 2441 Schedule 2 Form 4562 Schedule 3 Form 8582 Schedule A Form 8812 Schedule B Form 8949 Schedule C Form 8995 Schedule D Child Tax Credit Worksheet Schedule E Qualified Dividends & Schedule SE Capital Gains Tax Worksheet Forms may be obtained at www.irs.gov. For any information not provided, please use reasonable assumptions. Attached Source Documents Form W‐2 (2) Form 1099‐R Form 1099‐INT Form 1099‐DIV (3) Form 1099‐B (3) Form 1098 Income Statement Childcare Statement Charitable Contribution INCOME Greg’s landscaping business is located at 907 Palm Drive, Berrysburg, PA 17005. The name of his business is “By the Blade,” and the taxpayer identification number is 95‐9876556. Since you handle the bookkeeping for the business, you have printed the Income Statement from your accounting software. Travel costs are business related and do not include meals. The detail of the Meals and Entertainment Expenses account is as follows: Meals associated with business travel $ 400 Employee holiday party 300 Overtime meals for employees 100 Baseball tickets for entertaining large customers 600 $1,400 RENTAL PROPERTY Greg and Danielle own a condo and use it as rental property. The address is 108 Oak Terrace, Unit B, Harrisburg, PA 17111. The unit was purchased for $82,500 in 2004 and no significant improvements have been made to the property. Greg provides the management services for the property including the selection of tenants, maintenance, repairs, rent collection, and other services as needed. He spends approximately 2 hours per week on rental activity, on average. The revenues and expenses for the year are as follows: Rental income $ 14,000 Insurance 600 Interest expense 5,700 Property taxes 1,000 Miscellaneous expenses 700 MISCELLANEOUS DEDUCTIONS Greg and Danielle paid the following amounts during the year (by check): Political contributions $ 250 Church donations (attached) 5,025 Real estate taxes on their home 2,400 Mortgage interest for their home (attached) 10,105 Medical payments for doctors’ visits 700 Tax return preparation fees 350 Credit card interest 220 Auto insurance premiums 600 Uniforms for Danielle 125 State sales tax paid 1,076 Contribution to Danielle’s IRA 6,000 TAX DOCUMENTS The Miller family provided the following documents: (Back of Form W‐2’s) Tax Return Project Due Sundayby11:59pm Points 150 Submitting afileupload Available Nov7 at 12am - Nov 13 at 11:59pm Prepare the couple's federal income tax return, Form 1040 for the year ended December 31, 2021, plus any additional schedules necessary. Forms are available at the IRS website under Forms & Instructions. Please utilize the facts and the information included in the Miller family tax documents to complete this assignment. We will be using the 2021 federal income tax forms, rates, and laws. For any information not provided, please use reasonable assumptions Tax Return Project (150 points) Criteria Layout / Format of Tax Return & Schedules Identification / Calculation of Income Items Identification / Calculation of Deduction Items Calculation of Itemized v. Standard Deduction Calculation of Federal Income Tax Lil Identification / Calculation of Total Payments & Credits Calculation of Refund Well Organized / Timely Filing 20pts Full Marks 30pts Full Marks 20pts Full Marks 15pts Full Marks 15pts Full Marks 20pts Full Marks 15pts Full Marks 15pts Full Marks Ratings Opts No Marks Opts No Marks Opts No Marks Opts No Marks Opts No Marks Opts No Marks Opts No Marks Opts No Marks 20 pts 30 pts 20 pts 15 pts 15 pts 20 pts 15 pts 15 pts Total Points: 150