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ACC 315 - PERSONAL INCOME TAX ACCOUNTING
Fall 2018
TAX RETURN PREPARATION ASSIGNMENT
The requirements for this assignment are to prepare a U. S. Individual Income Tax Return as well as your
home state individual income tax return for John and Jane Doe for 2018 using 2017 tax forms.
The following data is to be used in preparing both tax returns.
John and Jane Doe are the parents of Jack and Jill who lived with them throughout the year.
They also support Jane's mother, Ernestine Day.
The following data applies to the above individuals:
John P. Doe
Jane E. Doe
Jill H. Doe
Jack B. Doe
Earnestine S. Day
AGE AT
12/31
SOCIAL
SECURITY
NUMBER
45
46
21
16
67
123-45-6789
234-56-7891
345-67-8910
345-68-9712
456-78-9012
The Does live at 248 Elmhurst Drive, Anywhere, PA 17001-1234. They own their own home,
which they purchased in 1999. They refinanced the original mortage on July 1 of this year, paying
$3,000 in points to DAS Bank. Mrs. Day lives at 1246 Independent Way, Anywhere, PA 17001-9876.
John and Jane Doe are both employed full time. John changed jobs this year. Jill and Jack are
both full-time students and had summer jobs. Mrs. Day is not employed and her only income was
$3,215 in interest and dividends along with her Social Security benefits.
You have been given the following documents reporting financial information for the Does:
JOHN
JOHN
EMPLOYER 1 EMPLOYER 2
Forms W-2:
Gross Wages
Social Security Wages
Medicare Wages
Income Tax Withheld
Social Security Withheld
Medicare Withheld
State Wages
State Tax Withheld
Local Wages
Local Tax Withheld
Section 125 Plan
Page 1 of 3
52,341.08
55,682.00
55,682.00
9,055.01
3,452.28
807.39
55,682.00
1,709.44
55,682.00
556.82
64,985.96
69,134.00
69,134.00
12,152.37
4,286.31
1,002.44
70,784.00
2,122.41
70,784.00
707.84
1,650.00
JANE
74,558.85
78,483.00
78,483.00
11,109.27
4,865.95
1,138.00
78,483.00
2,409.43
78,483.00
784.83
JILL
JACK
6,500.00
6,500.00
6,500.00
650.00
403.00
94.25
6,500.00
199.55
6,500.00
65.00
3,200.00
3,200.00
3,200.00
0.00
198.40
46.40
3,200.00
98.24
3,200.00
32.00
ACC 315 - PERSONAL INCOME TAX ACCOUNTING
Fall 2018
TAX RETURN PREPARATION ASSIGNMENT
JOHN
JILL
JACK
Forms 1099-INT
2,485.30
198.47
168.50
289.65
Forms 1099-DIV
Bank of America, EIN: 12-3456789
Total Dividends
Qualified Dividends
Capital Gain Distribution
Return of Capital
2,013.70
1,387.60
32.87
243.10
125.00
125.00
118.50
10.50
Form 1099-B
Merrill Lynch
(On December 1, Jack
sold 100 shares of
Caterpillar, Inc. which he
inherited from his father
who died on January 22)
Forms 1098
ABC Mortgage Company - Mortgage
DAS Bank - Mortgage
DAS Bank - Home Equity Loan
Form 1099-G
Your State Tax Refund for 2017
Schedule K-1 from Estate of Richard Doe
Interest Income
Total Dividend Income
Qualified Dividend Income
Long-Term Capital Gains
Page 2 of 3
JANE
5,803.00
8,023.00
6,385.00
1,137.86
123.00
208.00
209.75
187.50
402.00
ACC 315 - PERSONAL INCOME TAX ACCOUNTING
Fall 2018
TAX RETURN PREPARATION ASSIGNMENT
JOHN
JANE
JILL
JACK
In addition, the John and Jane indicated the following activity during the year:
Estimated Payments for state PIT
(4 - $100 timely-made quarterly payments)
Real Estate Taxes Paid
Total Medical Expenses
Long Term Care Insurance Premiums for John and Jane
Contributions with Receipts:
Cash to church
Cash to United Way
Cash to American Heart Association
Cash to American Cancer Society
Cash to Anywhere Volunteer Fire Co.
Clothing to Goodwill
Cost
Thrift Shop Value
Contributions without Receipts:
Cash to church
Cash to Salvation Army
Investment Interest
Supplies for Jane's classroom (Grade 10)
Costs related to John's obtaining
new job
Safe Deposit Box
Investment Publications
Investment Custodian Fees
Tax Return Preparation Fee
Payments to Cedar Crest College for Jill:
Tuition
Room and Board
Mandatory Fees
Books
400.00
6,137.83
2,586.00
4,187.00
2,600.00
520.00
25.00
25.00
50.00
104.00
7,500.00
1,400.00
520.00
20.00
147.00
267.00
378.40
42.00
387.00
160.00
350.00
38,616.00
11,544.00
950.00
1,485.00
In response to your questions, John and Jane indicated that when they refinanced their mortgage
they borrowed an additional $25,000, which was used for home improvements, and that the balance
on their $100,000 home equity line of credit was at any time no higher than $73,000.
John and Jane also indicated that they wanted to maximize their contributions to their Individual
Retirement Accounts for the year. What can they do?
Page 3 of 3
104.00