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23 . What is the total net amount of capital gain reported on Form 1040? a . $308 b . $2,411 c . $2,719 d . $2,900

Advanced Scenario 7: Mark and Barbara Matthews Directions

Using the tax software, complete the tax return, including Form 1040 and all appropri- ate forms, schedules, or worksheets . Answer the questions following the scenario .

Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice.

Interview Notes

• Mark and Barbara are married and want to file a joint return.

• Mark retired and began receiving retirement income on March 1, 2017 . No distribu- tions were received prior to his retirement . Mark selected a joint survivor annuity for these payments . The plan cost at annuity start date was $14,500 . Mark has already recovered $1,029 of his cost in the plan .

• The Matthews received a $125 state income tax refund from their 2018 state tax return . The Matthews do not have enough deductions to itemize for 2019 and they have never itemized deductions .

• Mark and Barbara stated if they are entitled to a refund, they want half of it depos- ited into their checking account and the other half deposited into their savings account . The checking account number is 123456789 and the savings account number is 987654321 . Both accounts are from Adelphi Bank and Trust .

ABC INVESTMENTS 456 Pima Plaza Your City, YS ZIP 2019 TAX REPORTING STATEMENT Mark and Barbara Matthews 742 Red Rooster Road Your City, YS ZIP Account No. 111-222 Recipient ID No. 317-00-XXXX Payer's Fed ID Number: 40-200XXXX FORM 1099-B* 2019 Proceeds from Broker and Barter Exchange Transactions Copy B for Recipient OMB NO. 1545-0715 Short-term transactions for which basis is reported to the IRS Report on Form 8949 with Box A checked and/or Schedule D, Part 1 (This Label is a Substitute for Boxes 10 & 6) 8 Description, 1d Stock or Other Symbol, CUSIP (IRS Form 1099-B box numbers are shown below in bold type) Action 1b Date 1c Date sold 1a Quantity 1d Proceeds 1e Cost or Gain/LOSS) ig Wash Sale 4 Federal Income 14 15 State Tax Acquired disposed Sold Other Basis Loss Disallowed Tax Withheld State Withheld Idaho Co. Common Stock 1,700.00 2,189.00 (489.00) TOTALS 1,700.00 2,189.00 FORM 1099-B* 2019 Proceeds from Broker and Barter Exchange Transactions Copy B for Recipient OMB NO. 1545-0715 Long-term transactions for which basis is not reported to the IRS Report on Form 8949 with Box E checked and/or Schedule D, Part II (This Label is a Substitute for Boxes 10 & 6) 8 Description, 1d Stock or Other Symbol, CUSIP (IRS Form 1099-B box numbers are shown below in bold type) Action 1b Date 1c Date sold 1a Quantity 1d Proceeds 1e Cost or Gain/Loss (-) 1g Wash Sale 4 Federal Income 14 15 State Tax Acquired disposed Sold Other Basis Loss Disallowed Tax Withheld State Withheld lowa Co. Common Stock Sale 06/15/1999 03/01/2019 200.000 TOTALS 2,900.00 4,600.00 4,600.00 1,700.00 1,700.00 ABC INVESTMENTS 456 Pima Plaza Your City, YS ZIP 2019 TAX REPORTING STATEMENT Mark and Barbara Matthews 742 Red Rooster Road Your City, YS ZIP Account No. 111-222 Recipient ID No. 317-00-XXXX Payer's Fed ID Number: 40-200XXXX FORM 1099-B* 2019 Proceeds from Broker and Barter Exchange Transactions Copy B for Recipient OMB NO. 1545-0715 Short-term transactions for which basis is reported to the IRS Report on Form 8949 with Box A checked and/or Schedule D, Part 1 (This Label is a Substitute for Boxes 10 & 6) 8 Description, 1d Stock or Other Symbol, CUSIP (IRS Form 1099-B box numbers are shown below in bold type) Action 1b Date 1c Date sold 1a Quantity 1d Proceeds 1e Cost or Gain/LOSS) ig Wash Sale 4 Federal Income 14 15 State Tax Acquired disposed Sold Other Basis Loss Disallowed Tax Withheld State Withheld Idaho Co. Common Stock 1,700.00 2,189.00 (489.00) TOTALS 1,700.00 2,189.00 FORM 1099-B* 2019 Proceeds from Broker and Barter Exchange Transactions Copy B for Recipient OMB NO. 1545-0715 Long-term transactions for which basis is not reported to the IRS Report on Form 8949 with Box E checked and/or Schedule D, Part II (This Label is a Substitute for Boxes 10 & 6) 8 Description, 1d Stock or Other Symbol, CUSIP (IRS Form 1099-B box numbers are shown below in bold type) Action 1b Date 1c Date sold 1a Quantity 1d Proceeds 1e Cost or Gain/Loss (-) 1g Wash Sale 4 Federal Income 14 15 State Tax Acquired disposed Sold Other Basis Loss Disallowed Tax Withheld State Withheld lowa Co. Common Stock Sale 06/15/1999 03/01/2019 200.000 TOTALS 2,900.00 4,600.00 4,600.00 1,700.00 1,700.00

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