Intro Fed Tax For-credit Tax Return Scenario Kai and Cora Santiago are married and live at 315 Strasbourg Lane, Norfolk, VA 23503. Kal and Cora's birthday's are 02/14/1977 and 10/17/1979, respectively. Their SSNs are 587-63-4219 and 964-35-8271, respectively. They have two children: Elena (253-47- 9681) born 7/24/2000 and Chance (561-92-7348) born 9/23/2001. Elena is a single, full-time college student at VCU (EIN 54-6001758) and earned $8,000 during the summer. Kai and Cora pay Elena's room & board ($12,000) and tuition ($6,000) annually. Elena lives at home in the summer. Chance also lives at home and has a physical handicap. He attends ODU (EIN 54-6000884) full-time and earned $4,000 working for a digital marketer. Kai and Cora pay for Chance's annual tuition of $5,200 and provide more than 50% of both Elena and Chance's support for the year. NOTE: You will need to partially complete the 1098-T. The university name and EIN are sufficient. If you "review your return it will render and error (i.e., incomplete 1098-T) and you may ignore it since we are not actually filing a return with the IRS. Kai is an accounting manager with one of the Big 4 and earns a $115,000 salary. Tax withholdings include federal income tax $23,000 and state income tax $8,000. Kai also pays $2,000 health insurance premium: $250 for disability insurance, and $400 for life insurance. Cora owns Cyber Sleuths, a proprietorship that does cybersecurity consulting, a specialized design service. Since the business is new (started 2/15 of the current year) she is the only employee. The EIN is 63-9175842 and has the same address as Cora's home address. The business uses a cash accounting method. During the year the company's gross revenues were $63,000. The proprietorship also incurred the following business expenses: Liability insurance $ 700 Training seminars 1,200 Computer 1 3,500 Computer 2 1,995 Software rental 5,400 Office furniture 7,000 Supplies 1,300 Journals and magazines 150 Donations to a political campaign fund 800 She chose not to take advantage of any Sec. 179 or bonus depreciation. All equipment and furniture were placed in service on February 15. She paid $3,000 for each quarter in estimated taxes, and the last quarter was paid on 12/29/2020. The business is not required to complete/report Forms 1099 and the business investment is at risk. 1 Cora's father passed away during the year and she and Kai received $100,000 from the life insurance policy. Neither of them paid any of the premiums. Kai purchased 100 shares of Bubblicious stock on July 1, 1992, for $1,000. He sold all 100 shares on December 12, 2020 for $95 per share. Chance was referred to a physical therapist to assist with his disability. Cora paid the therapist $7,000 during the year because insurance would not cover the costs. Kai and Cora made their annual vacation to Las Vegas and won $5,000 playing slots. However, they lost $6,000 playing Roulette. The Paris Hotel issued Kaithe W-2G reporting the $5,000 winnings. Kai and Cora gave $6,000 to their church and had the following other income and expenses for the year: $5,200 500 9,000 2,600 Real estate taxes Property taxes on car determined by value) Home mortgage interest Credit card finance fees Tax return preparation fees ($600 is allocable to Cora's business) Sales tax on purchases during the year Interest from a savings account at Community First Bank Interest from City of Boston Bonds Dividend from Proctor & Gamble stock 1,000 6,200 800 700 400 The Santiagos would like to file a joint return and do not wish to contribute to the Presidential Election Campaign. They have never engaged in any virtual currency transactions. REQUIREMENT: Complete all required forms and schedules that would be necessary to actually file a current year tax return. You should "print client return" then print and choose to print to PDF. You must upload the PDF file to iCollege for assessment/grading. Please follow the file name scheme described in your syllabus (and groups need to include ALL members' last names). Instructions For this assignment you will be required to complete Form 1040, U.S. Individual Income Tax Return, with Schedule C (Profit or Loss from Business {Sole Proprietor}). This activity will prepare you for the final exam and will give you practice preparing individual returns which is required in the tax professional environment. 1) The for-credit return should be completed using the Tax Act software you downloaded earlier in the course. The only exceptions are if you currently use tax software at your job (but you must get your employer's approval to use the software and remember NOT to actually file the return) OR you are a MAC user and choose the input PDF option below. 2) If you have a Mac you can use GSU'S VPN/VM information OR purchase "Parallels" or a similar program to run the Windows- based tax software OR you can use the input *.pdf forms at IRS.gov. I will NOT accept hand written information, so you must download all the PDF forms and then input and save the updates. NOTE: Tax returns are always in arrears. For example, we filed our 2019 individual returns in April/July 2020 and we will filed our 2020 individual returns in April 2021. 3) The 2020 tax forms are available at IRS.gov. Regardless of whether you use software or complete the return with *.pdfs, PLEASE GET A COPY OF THE FORM 1040 and Schedule C INSTRUCTIONS!! THEY WILL BE HELPFUL. Intro Fed Tax For-credit Tax Return Scenario Kai and Cora Santiago are married and live at 315 Strasbourg Lane, Norfolk, VA 23503. Kal and Cora's birthday's are 02/14/1977 and 10/17/1979, respectively. Their SSNs are 587-63-4219 and 964-35-8271, respectively. They have two children: Elena (253-47- 9681) born 7/24/2000 and Chance (561-92-7348) born 9/23/2001. Elena is a single, full-time college student at VCU (EIN 54-6001758) and earned $8,000 during the summer. Kai and Cora pay Elena's room & board ($12,000) and tuition ($6,000) annually. Elena lives at home in the summer. Chance also lives at home and has a physical handicap. He attends ODU (EIN 54-6000884) full-time and earned $4,000 working for a digital marketer. Kai and Cora pay for Chance's annual tuition of $5,200 and provide more than 50% of both Elena and Chance's support for the year. NOTE: You will need to partially complete the 1098-T. The university name and EIN are sufficient. If you "review your return it will render and error (i.e., incomplete 1098-T) and you may ignore it since we are not actually filing a return with the IRS. Kai is an accounting manager with one of the Big 4 and earns a $115,000 salary. Tax withholdings include federal income tax $23,000 and state income tax $8,000. Kai also pays $2,000 health insurance premium: $250 for disability insurance, and $400 for life insurance. Cora owns Cyber Sleuths, a proprietorship that does cybersecurity consulting, a specialized design service. Since the business is new (started 2/15 of the current year) she is the only employee. The EIN is 63-9175842 and has the same address as Cora's home address. The business uses a cash accounting method. During the year the company's gross revenues were $63,000. The proprietorship also incurred the following business expenses: Liability insurance $ 700 Training seminars 1,200 Computer 1 3,500 Computer 2 1,995 Software rental 5,400 Office furniture 7,000 Supplies 1,300 Journals and magazines 150 Donations to a political campaign fund 800 She chose not to take advantage of any Sec. 179 or bonus depreciation. All equipment and furniture were placed in service on February 15. She paid $3,000 for each quarter in estimated taxes, and the last quarter was paid on 12/29/2020. The business is not required to complete/report Forms 1099 and the business investment is at risk. 1 Cora's father passed away during the year and she and Kai received $100,000 from the life insurance policy. Neither of them paid any of the premiums. Kai purchased 100 shares of Bubblicious stock on July 1, 1992, for $1,000. He sold all 100 shares on December 12, 2020 for $95 per share. Chance was referred to a physical therapist to assist with his disability. Cora paid the therapist $7,000 during the year because insurance would not cover the costs. Kai and Cora made their annual vacation to Las Vegas and won $5,000 playing slots. However, they lost $6,000 playing Roulette. The Paris Hotel issued Kaithe W-2G reporting the $5,000 winnings. Kai and Cora gave $6,000 to their church and had the following other income and expenses for the year: $5,200 500 9,000 2,600 Real estate taxes Property taxes on car determined by value) Home mortgage interest Credit card finance fees Tax return preparation fees ($600 is allocable to Cora's business) Sales tax on purchases during the year Interest from a savings account at Community First Bank Interest from City of Boston Bonds Dividend from Proctor & Gamble stock 1,000 6,200 800 700 400 The Santiagos would like to file a joint return and do not wish to contribute to the Presidential Election Campaign. They have never engaged in any virtual currency transactions. REQUIREMENT: Complete all required forms and schedules that would be necessary to actually file a current year tax return. You should "print client return" then print and choose to print to PDF. You must upload the PDF file to iCollege for assessment/grading. Please follow the file name scheme described in your syllabus (and groups need to include ALL members' last names). Instructions For this assignment you will be required to complete Form 1040, U.S. Individual Income Tax Return, with Schedule C (Profit or Loss from Business {Sole Proprietor}). This activity will prepare you for the final exam and will give you practice preparing individual returns which is required in the tax professional environment. 1) The for-credit return should be completed using the Tax Act software you downloaded earlier in the course. The only exceptions are if you currently use tax software at your job (but you must get your employer's approval to use the software and remember NOT to actually file the return) OR you are a MAC user and choose the input PDF option below. 2) If you have a Mac you can use GSU'S VPN/VM information OR purchase "Parallels" or a similar program to run the Windows- based tax software OR you can use the input *.pdf forms at IRS.gov. I will NOT accept hand written information, so you must download all the PDF forms and then input and save the updates. NOTE: Tax returns are always in arrears. For example, we filed our 2019 individual returns in April/July 2020 and we will filed our 2020 individual returns in April 2021. 3) The 2020 tax forms are available at IRS.gov. Regardless of whether you use software or complete the return with *.pdfs, PLEASE GET A COPY OF THE FORM 1040 and Schedule C INSTRUCTIONS!! THEY WILL BE HELPFUL