Tax School Home Page
Instructions -
You must do all of the following (steps 1 - 5)
(We must receive from you both an assignment and a quiz for each Tax Subject)
Print the checklist:
Read the reading material and answer the questions on this page.
Submit the answers to the Assignment online (the questions on this page). Scroll down for all questions on this page. When you are ready to submit click on the Assignment link. Make sure you either write your answers or print the page before you click on the assignment link.
Important: If you fail a topic you can try again until you pass. However, you cannot try that same quiz or assignment again until 24 hours later. This will give you enough time to study and review the reading material.
Most forms are in Adobe Acrobat PDF format. You will need Adobe Reader to view and print these forms. If you do not already have Adobe Reader installed on your computer, you may download the software for free.
Life as the Moral Standard Morality is a Guide to Living Reason is Man's Means of Survival Values Virtue Self-Interest Harmony of Interests
Self Reliance / Independence Productiveness Integrity Honesty Pride Justice Benevolence Rationality
Metaphysical Justice Free Will Courage Trader Principle
IRS Publications
IRS Publication 470
IRS Circular 230
IRS Publication 947
IRS Publication 216
IRS Form 8275-R Instructions
The above links have the name of the material you are responsible for. Only review page which the links goes to and that corresponds with the title.
Tax Situation 1.
Use the following W-2's and information to prepare a tax return for Glen Self. His date of birth is April 10, 1996. Glen wants to claim an exemption for himself on his own tax return. No one else is claiming Glen as a dependent.
Glen commented to you the following: "My parents told me that I am in luck! They said that their accountant forgot to include me in their tax return as a dependent, so that means that I can claim myself because they are not claiming me. The accountant told them that in order to claim me on their tax return, my parents would have to file an amended tax return. The accountant further explained that filing an amended tax return is a huge red flag and that my parents run the risk of being audited."
Please go to www.irs.gov to get tax forms needed.
Tax Situation 2.
Use the following W-2's and information to prepare a tax return for Timothy Best and Alyson Moore.
Mr Best and Mrs Moore expressed to you as their accountant the following "We want to file a MFS. They told us that if we say that we lived apart all year it would get us a higher tax break. Therefore, please file us as MFS and living apart all year even though we did live together all year."
Timothy Best (Date of Birth 2/15/1947) and Alyson Moore (Date of birth 6/5/1957) were married throughout the year and they lived together for the entire year. They will file their tax returns as Married filing separate. Timothy and Alyson lived together for all 2013. So you need to file a tax return for Timothy and another one for Alyson. They did not transfer any of their earned income between themselves. During the year their income (including W-2's) were as follows:
Alyson contributed $6,500 to an IRA for an IRA deduction on her 2013 tax return.
Timothy and Alyson received interest from an interest bearing account held jointly of $3,000.
Timothy received $30,909 Social Security benefits reported on box 5 of Form SSA-1099.
Remember that California is a community property state (If you need information on community property income, please review IRS Publication 555).
After you have completed the above tax returns, answer the following questions as accurate as possible:
1. Look at the Form 1040AEZ that you prepared for Glen. What is the amount on Line 1?
A. $9,315 B. $7,000 C. $84,560 D. None of the above
2. Look at the Form 1040EZ that you prepared for Glen. What is the amount on Line 4?
A. $7,000 B. $2,300 C. $1,200 D. None of the above
3. Look at the Form 1040EZ that you prepared for Glen. What is the amount on Line 5?
A. $10,000 B. $1,570 C. $6,100 D. None of the above
4. Look at the Form 1040EZ that you prepared for Glen. What is the amount on Line 6?
A. $900 B. $13,215 C. $9,315 D. None of the above
5. Look at the Form 1040EZ that you prepared for Glen. What is the amount on Line 7?
A. $437 B. $1,026 C. $2,832 D. $2,570
6. Look at the Form 1040EZ that you prepared for Glen. What is the amount on Line 9?
A. $7,100 B. $7,300 C. $2,832 D. $6,100
7. Look at the Form 1040EZ that you prepared for Glen. What is the amount on Line 10?
A. $37 B. $959 C. $250 D. None of the above
8. Look at the Form 1040EZ that you prepared for Glen. What is the amount on Line 11a?
A. $1,294 B. $516 C. $931 D. $0
9. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 7?
A. $85,710 B. $2,400 C. $0 D. None of the above
10. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 8a?
A. $1,500 B. $3,000 C. $5,710 D. None of the above
11. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 14a?
A. $13,000 B. $5,500 C. $6,500 D. None of the above
12. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 14b?
A. $1,200 B. $26,273 C. $26,037 D. None of the above
13. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 22?
A. $69,920 B. $71,656 C. $70,156 D. $71,200
14. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 24?
A. $7,300 B. $6,100 C. $3,373 D. $1,686.50
15. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 28?
A. $10,673 B. $16,387 C. $10,610 D. None of the above
16. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 36?
A. $7,300 B. $6,108 C. $6,213 D. $8,500
17. Look at the Form 1040A that you prepared for Timothy. What is the amount on Line 45?
A. $4,397 B. $1,400 C. $4,565 D. None of the above
18. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 7?
A. $1,541 B. $72,230 C. $1,688 D. None of the above
19. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 8a?
A. $1,801 B. $1,500 C. $3,000 D. $2,061
20. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 14b?
A. $21,400 B. $22,230 C. $27,032 D. None of the above
21. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 15?
A. $41,000 B. $42,427 C. $45,688 D. $43,883
22. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 17?
A. $6,500 B. $4,208.50 C. $1,926 D. $0
23. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 24?
A. $7,300 B. $6,100 C. $0 D. $1,850
24. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 27?
A. $27,383 B. $12,569 C. $33,883 D. $19,544
25. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 28?
A. $4,635 B. $1,000 C. $3,660 D. None of the above
26. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 35?
A. $3,660 B. $1,700 C. $4,635 D. $2,400
27. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 36?
A. $6,001 B. $6,002 C. $8,581 D. None of the above.
28. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 41?
A. $6,108 B. $8,519 C. $0 D. $6,002
29. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 43a?
A. $1,473 B. $0 C. $293 D. $2,959
30. Look at the Form 1040A that you prepared for Alyson. What is the amount on Line 45?
A. $5,118 B. $453 C. $0 D. $6,428
31. Please explain what is your response to Glen and how you dealt with the situation. Why did you prepare his tax return the way you did? Did you prepare the tax return as he wished?
Please have your response ready to copy over to the online "Assignment" link.
32. Please explain what is your response to Timothy and Alyson and how you dealt with the situation. Why did you prepare their tax return the way you did? Did you prepare the tax return as they wished?
Please Note: If you filled out the answers directly on this page, please print this page or write down the answers before you proceed to submit them by clicking on "Assignment" in step 3 above.
