Option #1: Individual Tax Returns—Case 1

Because it is important for accountants to demonstrate the filing requirements for individual tax returns, for this final project you will be completing an individual tax return and then analyzing this experience. There are several requirements for this project that should be submitted during the weeks when there are Portfolio Project Milestones (Modules 2, 3, 5, and 7) and contribute to your final grade in this project.

Key Component

Using the case data from the attached Case 1, complete Form 1040. Complete the template, attached below the assignment in the modules tab, that has the respective tax forms and schedules required to complete the return. Complete all of the remaining parts of your respective business tax return for which there is information. Also, address any instructor feedback provided in the milestone submissions.

Requirements

Submit your tax return and computations to the drop box identified for this submission.

Review the Portfolio Project Grading Rubric, which can be accessed in the Module 8 Materials folder, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

 

 

 

ACT405 – Portfolio Project Case 1

 

Comprehensive Tax Problem – Option 1

 

Taxpayer Information

Name:   John Washington

Address:   3450 Green St.

Miami, FL 54321

DOB:   5/5/1960

Filing Status:  Married

SSN:  434-20-2020

Occupation:  Engineer

 

Name:  Debra Washington

Address:  3450 Green St.

Miami, FL  54321

DOB:  7/7/1962

Filing Status:  Married

SSN:  411-21-4568

Occupation:  Teacher

 

INCOME INFORMATION:

 

Wages and Compensation

 

The following information is taken from John Washington’s 2017 Form W-2 Wage and Tax Statement:

 

Box 1 – Wages, tips, and other compensation	80,000
Box 2 – Federal Withholding	12,500
Box 17 – State Income Tax Withholding	2,000

 

 

The following information is taken from Debra Washington’s 2017 Form W-2 Wage and Tax Statement:

 

Box 1 – Wages, tips, and other compensation	42,000
Box 2 – Federal Withholding	3,500
Box 17 – State Income Tax Withholding	750

 

 

 

                Interest and Dividends

 

John had interest income from a savings account from Everest Bank of $500.00

 

Debra had dividend income of $550 from Blue Co. stock.

 

 

Capital Gains

 

John had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000

 

Rental Real Estate

 

The couple owns a rent house which he purchased on July 1, 2014.  The income and expenses of the rental real estate unit are as follows:

 

Rental income                                   $12,000

Property taxes                                  $1,500

Depreciation                                       $1,000

Repairs and Maintenance             $750

Insurance                                            $2,000

 

Other Transactions in 2017

 

1. Debra had educator expenses in 2017 of $450.00
2. John had gambling winnings of $1,000.
3. John was the beneficiary of his mother’s life insurance policy.

His mother died in 2017 and he received $50,000 under this policy.

4. Debra paid $700 in student loan interest.