Reference no: EM131294157

Form 1040 - U.S. Individual Income Tax Return

Assume that the taxpayers, George A. Warden (social security number 333-33-3330) and Mary S. Warden (social security number 444-44- 4440) file a joint return. Both are 50-years old, have good eyesight, and live with their three children, Edward, John and Ruth, at 789 N. Code Drive, Chicago, Illinois 60699. The Warden's home phone number is 312-555-9999. Mr. Warden elects to have $3 of his income tax go to the Presidential Election Campaign Fund. Mrs. Warden elects not to contribute. The Wardens' oldest son, Edward, is 20 years old and a student at the University of Finance and Accounting. He worked during the summer and earned $4,000. Their other son, John, is 17 and a high school student. He earned $3,600 working full-time during the summer and part-time during the remainder of the year. Neither son had any additional income. Their daughter, Ruth, is eight years old and an elementary school student. She had no earned or unearned income during the year. Edward's social security number is 300-11-0001, John's social security number is 300-22-0002, and Ruth's social security number is 300-33-0003. In August, the Wardens paid $4,000 in tuition for their son, Edward, for the academic period that started in September. They received a Form 1098-T for 2014 showing the payment received in Box 1. Box 8 is checked indicating Edward was at least a half-time student. Edward had not claimed the American Opportunity Credit or Hope Scholarship Credit in any four prior tax years, did not complete the first four years of post-secondary education before 2014, and he had not been convicted of any felony. The Wardens claim Mrs. Warden's mother, Grace D. Taylor, as a dependent under a multiple-support agreement. The total support of Mrs. Taylor is $6,000, received from the following three sources:

(1) $3,000 from Mary Warden,
(2) $1,000 from another daughter, Thelma Taylor, and
(3) $2,000 in social security benefits.

Mrs. Grace D. Taylor lived with the Wardens during all of 2014. Her social security number is 400-44-0004. Thelma Taylor provides the Warden's with a written, signed statement, that she will not claim her mother as a dependent in 2014. Thelma Taylor lives at 1425 S. 62nd Street, Chicago, IL 60699, and her social security number is 500-55-0005. The Wardens use Trish Ford, a professional tax preparer, to prepare their income tax return. Trish Ford's PTIN is P98765432, and she works for E&Z Tax Preparation (EIN #36-0987654), which is located in a nearby suburb of Middle America (telephone number 312-555-1040). However, the Warden's do not authorize her to discuss their return with the IRS. Income and Expenses Generally During 2014, Mrs. Warden was employed as a salesperson by XPert Publishing Inc. Her Form W-2 for 2014 reports the following:

Box 1. Wages, tips and other compensation $75,000
Box 2. Federal income tax withheld $4,950
Box 4. FICA tax withheld $4,650
Box 6. Medicare tax withheld $1,088
Box 17. State income tax $2,250

Mrs. Warden is not covered by her employer's retirement plan. In addition, Mr. Warden is a self-employed individual who does not maintain a Keogh or a SEP plan. Mrs. Warden made a $1,500 contribution to a traditional IRA and a $2,000 contribution to a Roth IRA in 2014. Mr. Warden decided against making a contribution to any IRA. The Wardens received a $30 state income tax refund. They itemized in the prior year and elected to take their $2,000 state income tax payment as a deduction. The Wardens also received a $20 federal income tax refund.

Attachment:- form 1040.rar