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Name: Jane Doe

SSN: $444-44-4444$

Address: $555$ Any Street, Anytown, CA $90000$

Marital Status: Separated $-$ Living apart

Minor Children: $1($lives with ex$-$husband$)$

Elections: Standard deduction $($never itemized$)$

Summary:

Jane Doe $($DOE$)$ was an employee at ABC, Inc. $($benefit details below$).$ After being injured on the job, DOE

received three monthly payments from an disability policy $($benefit details below$).$ At the start of the tax year,

DOE sold her residence for $$600,000($Payer #$1).$ DOE bought the house she sold for $$300,000$ and lived in the

house for $10$ years prior to the sale. During the tax year, DOE received $$25,000$ in workers compensation

payments. By the end of the tax year, DOE had substantial gambling debts that exceed her total assets. Realizing

the her debt of $$30,000$ was uncollectable, the casino $($Payer #$2)$ forgave DOE's gambling debt and issued her a

Form $1099.$ During the tax year, DOE received the following:

$$1,500$ in winnings from slot machines; and

$$1,000$ from a state income tax refund;.

With regard to DOE's job at ABC, Inc., DOE received wages of $$20,000$ for time she worked. In addition to her

salary, DOE received the following employee benefits from ABC, Inc.:

Employer paid health care of $$15,000$;

$$5,000$ in sick pay benefits;

$$5,000$ in vacation benefits; and

Employer paid group term life insurance with $$50,000$ in coverage.

Question $1$

When completing Form $8949,$ which entries are correct?

X in Box A; $1($d$)=$ $$600,000$; $1($e$)=$ $$250,000$; $1($h$)=$ $$50,000$

X in Box C; $1($d$)=$ $$600,000$; $1($e$)=$ $$300,000$; $1($h$)=$ $$300,000$

X in Box F; $1($d$)=$ $$600,000$; $1($e$)=$ $$300,000$; $1($f$)=$ H; $1($g$)=-$$$250,000$; $1($h$)=$ $$50,000$

X in Box F; $1($d$)=$ $$600,000$; $1($e$)=$ $$300,000$; $1($f$)=$ i; $1($g$)=($$$250,000)$; $(1($h$)=$ $$0$

Question $2$

When completing Schedule D$,$ which entry is correct?

Line $10($h$)=$ $$50,000$

Line $3($h$)=$ $$50,000$

Line $7($h$)=$ $$50,000$

Line $9($d$)=$ $$600,000$

Question $3$

When completing Schedule $1,$ which entries are correct?

$1=$ $$1,000$; $8($a$)=$ $$1,500$; and $10=$ $$2,500$

$1=$ $$1,000$; $8($b$)=$ $$1,500$; and $10=$ $$2,500$

$1=$ $$0$; $8($b$)=$ $$1,500$; $8($c$)=$ $$30,000$; and $10=$ $$31,500$

$1=$ $$0$; $8($b$)=$ $$1,500$; $8($c$)=$ $$30,000$; $8($z$)=-30,000$; and $10=$ $$1,500$

Question $4$

What is DOE's total income on Form $1040?$

$$70,500$

$$111,500$

$$81,500$

$$80,500$

Question $5$

What is DOE's taxable income?

$$57,450$

$$86,950$

$$68,550$

$$55,450$

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