Courtney Smathers Fall 2016

Transcription

1 Courtney Smathers Fall

2 Courtney Smathers Fall

3 Courtney Smathers Fall 2016 Interview Notes very simple return Courtney Smathers is a teenager who lives with her parents and is a full-time resident of Massachusetts. You verify her Social Security number is Courtney is a full-time high school student and works part time weekends and summers at Food Basket as a cashier to save for college. Courtney s parents provide all of her support and she is covered under her mother s health insurance plan. 1-3

4 Courtney Smathers Fall

5 Samuel and Abigail Johnson Fall

6 Samuel and Abigail Johnson Fall

7 Samuel and Abigail Johnson Fall 2016 Interview Notes simple retiree return Social security cards provided: Samuel Johnson Abigail Johnson Sam and Abby have been married for 50 years. Both are retired. They sold the big house where they raised their family and now live in an in-law apartment in their daughter s home. They pay no rent. Sam retired from Big D Incorporated, a major defense contractor, and receives an annual pension. They are also both taking their required distributions from the IRAs they established from rolling over 401(K) accounts. They did not itemize deductions last year. Sam and Abby were on Medicare for the entire year. 2-3

8 Samuel and Abigail Johnson Fall

9 Samuel and Abigail Johnson Fall

10 Samuel and Abigail Johnson Fall

11 Sheryl Berringer Fall

12 Sheryl Berringer Fall

13 Sheryl Berringer Fall 2016 Interview Notes - adapted from 2013 Pub 4491W Social security cards provided Sheryl Beringer Courtney Johnson Artis Johnson Monica Jesse Willie W. Cash Sheryl has two children, Courtney and Artis Johnson, who live with her full time. She has been divorced since She paid all the household expenses and provided all of her children s support. Sheryl s mother, Monica Jesse, also lives with her full time and Sheryl provides over half of her support. Monica s only income is from Social Security and a small amount of bank interest. She spends her SSA benefits on her medical expenses and does not contribute to the household expenses. Sheryl did not itemize on last year s return. Sheryl is repaying a student loan and received a statement from the lending institution showing that she had paid $ in interest last year. Sheryl s friend, Willie Cash, lost his home and moved in with her April 18 of the tax year. He does not have any income and is currently looking for work. Sheryl would like to claim Willie as a dependent. Sheryl rents her home, paying $1000 per month. Sheryl s company provides health insurance for her and her two children. She provides Forms 1095C and MA 1099-HC showing she had full-year Aetna insurance with a plan ID of and subscriber number of Monica is on Medicare. 3-3

14 Sheryl Berringer Fall

15 Timothy and Nicole Sterling Fall

16 Timothy and Nicole Sterling Fall

17 Timothy and Nicole Sterling Fall 2016 Interview Notes - adapted from 2013 Pub 4491-W Social security cards provided: Timothy A. Sterling Nicole S. Sterling Christina Summers Timothy and Nicole have been married for over 40 years. Timothy retired from the International Brotherhood of Electrical Workers on January 1, 2009 and elected to take a joint and survivor annuity at that time. Nicole was hit by a car and severely injured. She was granted Social Security Disability as a result of her injury. Timothy s sister, Christina Summers, lived with them all year. She is totally and permanently disabled and relies upon her brother for her support. She received $250 per month in social security benefits. Nicole has less than 20/200 vision in both eyes. She provided a doctor s statement that she is legally blind.. Timothy s brokerage statement shows that he purchased 100 shares of Domestics stock on March 12, 1984 for $12,000. This is a non covered security and the basis was not reported to the IRS. He sold the stock on March 23 of this year. He received $23,789 net of commissions on the sale. They itemized deductions last year, but did not receive any state refund. Timothy, Nicole, and Christina were on Medicare for the entire year. The Sterlings own their home, but have no mortgage at this time. They bring in their real estate tax bills which show an assessed value of $295,000 and total real estate taxes paid of $4, They had a well and septic system so pad no water or sewer bills. 4-3

18 Timothy and Nicole Sterling Fall

19 Timothy and Nicole Sterling Fall

20 Timothy and Nicole Sterling Fall

21 Timothy and Nicole Sterling Fall

22 Timothy and Nicole Sterling Fall 2016 This page left blank. 4-8

23 Rachel E. Brown Fall

24 Rachel E. Brown Fall

25 Rachel E. Brown Fall 2016 Interview Notes Rachel works part-time at a large store. She owns her house outright and pays the real estate taxes herself. She received a state tax refund last year but did not itemize her deductions. She is not sure whether she should itemize this year or not. She buys a $1 lottery ticket each week and had one winning ticket. She heard about the Senior Circuit Breaker credit and wonders if she is eligible. You confirm the entries on her Intake and Interview sheet (13614-C). She presents the following documents: Her Social Security payment (SSA-1099) Wages paid statement (W-2) Interest and Dividend statements (1099-INT / 1099-DIV) A Massachusetts state pension for her late husband (1099-R) State tax refund notice (1099-G) State Lottery winnings statement (W-2G) Medical expenses and a list of charitable contributions (with acknowledgements) Mass HC-1099 from Blue Cross/Blue Shield - EIN showing coverage for entire year Real estate and car excise tax statements (marked PAID by the town clerk). Her single dwelling house is assessed at $ 263,200. Feb: $1, May: $1, Aug: $1, (includes $14.78 in late fees) Nov: $1, Car Excise $ Water and sewer bills for her home (marked PAID by the town clerk) Feb: $60.43 May: $59.78 Aug: $72.96 Nov: $

26 Rachel E. Brown Fall

27 Rachel E. Brown Fall

28 Rachel E. Brown Fall

29 Rachel E. Brown Fall

30 Rachel E. Brown Fall 2016 Deductible Expenses Medical Insurance Medicare (from SSA-1099) $1,969 Blue Cross/Blue Shield 903 MD Co-Pay 35 Rx Drugs 626 Glasses 175 Dental 250 Medical Miles Driven trips to MD at 20 miles RT 2 trips to Dentist at 5 miles RT Cash donations to church $520 American Cancer Society

31 Hannah Fleming Fall

32 Hannah Fleming Fall

33 Hannah Fleming Fall 2016 Interview Notes - adapted from 2013 Pub 4491-W Hannah is a single mother of two children, Tara and Jerry. She showed you three social security cards with the following numbers: Hannah E Fleming Tara Fleming Jerry Fleming Hannah was employed as an editor. Starting on July 1, 2009 she did some editing work from her home for Candid Publishing Co. who provided form 1099-MISC. She kept a record of her expenses: $1,625 for paper, $1, for printer cartridges, $1,250 for postage, $350 for a business phone line and long distance calls, and total mileage of 234 for January and February for making deliveries. She had 10,000 other miles on her car. Hannah has one car which she bought in 2007 and began using for her work when she started working at home. She has a written record of her business mileage. She took a processing course in the evening at the local college to improve her skills. The tuition was $575. The Business Code for Schedule C-EZ or C is The address for the college was: One University Way, Your City, State and Zip Code. Hannah is divorced. The divorce decrees states that her ex-husband is to claim their son, Jerry, as a dependent on his return even though Hannah provides all the support for their children, Tara and Jerry. It also states that he is to pay her $300 per month alimony. Due to the loss of his job during the year, he only paid for 8 months. Hannah confirmed that the tax exempt interest she received from Northern Bank was exempt both federally and in Massachusetts. In January of the tax year, Hannah took an IRA distribution of $5,000 to pay off credit card debt. She did not itemize deductions last year. Hannah paid the Lucas Tiny Tots (EIN ), located at 54 Unique Way, Your City, State and ZIP Code, for Tara and Jerry s care while she was at work. She paid the day-care center $1,794. Hannah had a serious accident in June of the tax year and stopped working. She collected unemployment compensation, but was too young to retire. Hannah is now totally and permanently disabled.* Hannah s education expenditures could be a business expense or a credit. Determine the most advantageous benefit for which she is qualified. Hannah let you know that a couple of years back she experience an identity theft issue. She brought with her a copy of the CP01A letter. Her letter shows that she was issued a PIN of for use when completing her return. Hannah rents an apartment; her monthly rent was $975. She and the children were covered by MassHealth for the year. 6-3

34 Hannah Fleming Fall 2016 * The 1099-R $5400 distribution from One World Publishing should appear on 1040 line 7 as wages TaxSlayer provides a box on the 1099-R form for that purpose. However, TaxSlayer does not carry the $5400 over to MA Form 1 at all. For this return, include the $5400 as a taxable IRA distribution in the state section. 6-4

35 Hannah Fleming Fall

36 Hannah Fleming Fall

37 Hannah Fleming Fall

38 Hannah Fleming Fall 2016 This page left blank. 6-8

39 Gail Hudson Fall

40 Gail Hudson Fall

41 Gail Hudson Fall 2016 Interview notes adapted from the NTTC workbook Learning objective: federal health care exemptions Gail has recently taken a job as a restaurant manager. Gail shows you her social security card with number Gail did not have any health insurance with her job and purchased insurance through the Marketplace in March of the current tax year. She gives you her A and MA Form 1099-HC showing an EIN of and subscriber number of Gail rents her apartment for $1000 per month. 7-3

42 Gail Hudson Fall

43 Gail Hudson Fall

44 Gail Hudson Fall

45 Albert and Lois Meadows Fall

46 Albert and Lois Meadows Fall

47 Albert and Lois Meadows Fall 2016 Interview Notes adapted from the NTTC workbook Learning objective: federal health care premium tax credits Albert was married previously to Eleanor Meadows and he pays her $ a month alimony. Albert retired on December 1, 2013 after 30 years of service. He is under 65 and not disabled and does not yet receive social security. His pension was set up as a joint/survivor. Albert is not eligible for health insurance coverage from his former employer and his wife Lois is not offered insurance at her place of work. Albert purchased health insurance through the Marketplace for himself, his wife, and his son several years ago and continued to do so this year. When Albert purchased health insurance for the family he estimated their household income at $2,000 per month. Their MA 1099-HC showed their subscriber numbers as (Albert) and (Lois). Lois attended Woodbury Community College several years ago where she took teaching certification classes that were necessary for her job. She shows you a 1098E with student loan interest. Lois and Albert have no mortgage and their real estate taxes are not high enough for them to itemize deductions. Albert and Lois show you the following social security cards: Albert Lois Warren

48 Albert and Lois Meadows Fall

49 Albert and Lois Meadows Fall

50 Albert and Lois Meadows Fall

51 Albert and Lois Meadows Fall

52 Albert and Lois Meadows Fall 2016 This page left blank. 8-8

53 Jeremy and Janice Clark Fall

54 Jeremy and Janice Clark Fall

55 Jeremy and Janice Clark Fall 2016 Interview Notes adapted from the NTTC workbook Learning objective: calculate federal/state health care SRPs and/or affordability exemptions Jeremy and Janice were married two years ago. Jeremy says he had health insurance that meets MEC through his work for himself and his two sons Thomas and Sean. Janice did not have health insurance through her job and did not apply for any marketplace exemptions. Jeremy shows you his MA 1099-HC showing he has Blue Cross Blue Shield insurance, EIN , subscriber number They currently live with Jeremy s widowed mother in her home and pay no rent or real estate taxes. They did not itemize last year and will not itemize this year either. Jeremy and Janice show you the following social security cards: Jeremy Janice Thomas Sean The calculated MA penalty is $708. For purposes of MA affordability, assume the Clarks live in region

56 Jeremy and Janice Clark Fall

57 Jeremy and Janice Clark Fall

58 Jeremy and Janice Clark Fall

59 Mark Austin Fall

60 Mark Austin Fall

61 Mark Austin Fall 2016 Interview Notes Austin This return was adapted from the 2013 Pub 4491-W. Social Security numbers provided: Mark Austin Andrea Austin Mark and Andrea Austin have been separated since They have not lived together since the separation, but their divorce is not finalized. Andrea has already filed her tax return and she itemized her deductions. Her SSN is Mark itemized deductions last year and received a refund from the MA department of revenue for $171. Mark itemized because Andrea did the same. His itemized deductions total $13,750 his taxable income was $8,549. The amount from last year s Schedule A, line 5a (income taxes) was $423. His general sales tax was $350. Mark retired on 15 January 2005 and began taking annuity payments from the Railroad and now works part-time as a machinist. His annuity does not make provisions for a joint and survivor annuity. Mark contributed a total of $12,000 to his IRA while he was a MA resident and has taken $1350 since he turned 70 ½. His church contributions were $1,700 (per statement from the church). Mark purchased a new home on April for $134,000. He received $7,500 for his First Time Home Buyer Credit. The IRS sent him a CPO3A reminding him about the repayment of the annual $500 that needs to be included on his tax return. He repaid the minimum $500 on all tax returns since 2010 and does not wish to replay a larger amount this year. He paid $125 in car excise taxes this year. He did not qualify for the premium tax credit and had Medicare for minimum essential coverage all year. 10-3

62 Mark Austin Fall

63 Mark Austin Fall

64 Mark Austin Fall

65 Sean and Stacey Graham Fall

66 Sean and Stacey Graham Fall

67 Sean and Stacey Graham Fall 2016 Interview Notes Graham This return was adapted from the 2013 Pub 4491-W and the MA additions by Peter Viles. Social Security cards provided: Sean Graham Stacey Graham Jeremy Graham Joshua Graham Gail Forsyth Sean and Stacey Graham are married, have two children living with them, and want to file a joint return. Stacey s mother, Gail Forsyth, lived with Sean and Stacey for the entire year. Gail s entire income consists of $2,500 earned as a teacher s aide, $360 in interest, and $4,200 in Social Security benefits. Sean and Stacey provided over half of Gail s total support. She is a US Citizen and is widowed. Sean paid his ex-wife, Elaine, $250 per month, all year, in alimony. Elaine s SSN is Jeremy started college and was in his first year. He has not been convicted on any felony crimes. His college issued a 1098-T for his education costs and scholarship. The Grahams wrote a check for $7,000 to his college. Gail paid $800 for a college course to improve her classroom management skills. She attended Campbell University, 15 Morgan Drive, Your town, state and zip code. Stacey paid $500 in interest on student loans for her Master of Science Degree in Elementary Education. Stacey went to Reno Nevada with friends and won $1,000 playing poker. She purchases MA lottery tickets, but had no winnings. She says she incurred $1,500 in gambling losses and says she has a written record to support those losses. Sean and Stacey own their own home. In 2015, their home was assessed at $251,000 and their water and sewer charges for the year were $ Stacey does a lot of on-line shopping and wishes to take the Safe Harbor use tax on the MA return. Both Sean and Stacy are covered by Blue Cross Blue Shield of MA. The EIN is , subscriber numbers and -2. Both children are covered under the same policy. Gail had Medicare A and B coverage all year. If Sean and Stacey are due a refunds, they want the refund deposited directly into their check account at the Local National Bank in their town. If they owe on either Federal or MA returns, they want the amount owed debited. The Local National Bank routing number and checking account number are: and , respectively. Sean and Stacey want to itemize their deductions this year. They provide the following information with supporting documentation. o Medical insurance premiums paid by Stacy $

68 Sean and Stacey Graham Fall 2016 o Hospital bills, unreimbursed $ 315 o Doctor bills, unreimbursed $ 540 o Dentist bills, reimbursed by insurance $4200 o Antihistamine (over the counter) $ 190 o Gail s prescription drugs (unreimbursed); Stacey paid $ 650 o Life insurance premiums $ 385 o Insulin (unreimbursed) $ 250 o Excise tax on vehicles $ 565 o Mortgage interest $5656 o Real estate taxes $1300 o Credit card interest $ 900 o Church contributions paid by check $7550 o Union dues $ 875 o Safety Deposit Box for investments $

69 Sean and Stacey Graham Fall

70 Sean and Stacey Graham Fall

71 Sean and Stacey Graham Fall

72 Sean and Stacey Graham Fall