Income Tax Fundamentals free essay sample

Form Department of the Treasury—Internal Revenue Service (99) U. S. Individual Income Tax Return Last name 2011 , 2011, ending OMB No. 1545-0074 , 20 IRS Use Only—Do not write or staple in this space. * For the year Jan. 1–Dec. 31, 2011, or other tax year beginning Your first name and initial If a joint return, spouse’s first name and initial See separate instructions. Your social security number Spouse’s social security number Ivan I. Incisor Last name Irene I. Incisor Home address (number and street). If you have a P. O. box, see instructions. 68 Mule Deer Lane City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Spokane, WA 99206 Foreign country name Foreign province/county Filing Status Check only one box. 1 2 3 6a b c X Single Married filing jointly (even if only one had income) Married filing separately. Enter spouse’s SSN above and full name here. Spouse . Dependents: Exemptions x x Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . . . . . . . . . . . . . . . . (2) Dependent’s social security number (3) Dependent’s relationship to you (1) First name If more than four dependents, see instructions and check here Ira d Total number of exemptions claimed of as 11 ft 20 ra 9/ } D /2 8 0 Apt. no. 477 34 4321 637 34 4927 Make sure the SSN(s) above and on line 6c are correct. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking Foreign postal code a box below will not change your tax or refund. You Spouse X X 4 Head of household (with qualifying person). (See instructions. ) If the qualifying person is a child but not your dependent, enter this child’s name here. 5 Qualifying widow(er) with dependent child . . . . . . . Last name (4) if child under age 17 qualifying for child tax credit (see instructions) Boxes checked on 6a and 6b No. of children on 6c who: †¢ lived with you †¢ did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above 2 1 Incisor 690 99 9999 . . . Child . . x . . . . . . . . . . . . Add nu mbers on lines above 3 Income Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. 7 8a b 9a b 10 11 12 13 14 15a 16a 17 18 19 20a 21 22 23 24 25 26 27 28 29 30 31a 32 33 34 35 36 37 Wages, salaries, tips, etc. Attach Form(s) W-2 . Taxable interest. Attach Schedule B if required . Tax-exempt interest. Do not include on line 8a . Ordinary dividends. Attach Schedule B if required . . . . . . . . . . 8b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8a 9a 10 11 12 13 14 15b 16b 17 18 19 20b 21 22 65,000 380 Qualified dividends . . . . . . . . . . . 9b Taxable refunds, credits, or offsets of state and local income taxes Alimony received . . . . . . . . . . . . . . . If you did not get a W-2, see instructions. Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . Capital gain or (loss). Attach Schedule D if required. If not required, check here Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . IRA distributions . 15a b Taxable amount . . . Pensions and annuities 16a b Taxable amount . . . Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F . Unemployment compensation . . . . Social security benefits 20a . . . . . . . . . . . . . . . . . . . . b Taxable amount . . . . . . . . . Enclose, but do not attach, any payment. Also, please use Form 1040-V. Other income. List type and amount Combine the amounts in the far right column for lines 7 through 21. This is your total income Educator expenses . . . . . . . . . . 23 24 25 26 27 28 29 30 31a 32 33 34 . . . . . . . . . . . Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ Health savings account deduction. Attach Form 8889 . Moving expenses. Attach Form 3903 . . . . . . Deductible part of self-employment tax. Attach Schedule SE . Self-employed SEP, SIMPLE, and qualified plans . . Self-employed health insurance deduction Penalty on early withdrawal of savings . . Alimony paid b Recipient’s SSN IRA deduction . . . . . . . Student loan interest deduction . Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,380 Adjusted Gross Income Domestic production activities deduction. Attach Form 8903 35 Add lines 23 through 35 . . . . . . . . . . . . . Subtract line 36 from line 22. This is your adjusted gross income 36 37 65,380 Form For Disclosure, Privacy Act, and Paperwor k Reduction Act Notice, see separate instructions. Cat. No. 11320B 1040 (2011) * The 2012 version of this form is not available as we go to press. Please see the Web site for the text at www. cengage. com/taxation/whittenburg for solutions updated to 2012 forms. Chapter 1 – Cumulative Software Problem Answer 1-2 Comprehensive Problem 2, cont. Form 1040 (2011) Page 2 Tax and Credits Standard Deduction for— †¢ People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. †¢ All others: Single or Married filing separately, $5,800 Married filing jointly or Qualifying widow(er), $11,600 Head of household, $8,500 38 39a b 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59a b 60 61 Amount from line 37 (adjusted gross income) Check if: { . . . . . . . You were born before January 2, 1947, Spouse was born before January 2, 1947, Blind. Blind. } . . . . . . 38 65,380 11,900 53,480 11,400 42,080 5,441 5,441 Total boxes checked 39a 39b . . . . 40 41 42 If your spouse itemizes on a separate return or you were a dual-status alien, check here Itemized deductions (from Schedule A) or your standard deduction (see left margin) Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . Exemptions. Multiply $3,700 by the number on line 6d . . . . . . . . . . . . Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . Form 4972 c 962 election Tax (see instructions). Check if any from: a Form(s) 8814 b Alternative minimum tax (see instructions). Attach Form 6251 . Add lines 44 and 45 . . . . . . . . . . . . . . Foreign tax credit. Attach Form 1116 if required . . . . Credit for child and dependent care expenses. Attach Form 2441 Education credits from Form 8863, line 23 . . . . . Retirement savings contributions credit. Attach Form 8880 Child tax credit (see instructions) . . . . . . . . Residential energy credits. Attach Form 5695 . . . . 52 3800 b 8801 c Other credits from Form: a 53 Add lines 47 through 53. These are your total credits . . . . . Subtract line 54 from line 46. If line 54 is more than line 46, enter -0Self-employment tax. Attach Schedule SE . . . Unreported social security and Medicare tax from Form: Household employment taxes from Schedule H Other taxes. Enter code(s) from instructions . . . Other Taxes Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . . . . . . . First-time homebuyer credit repayment. Attach Form 5405 if required . . . . . f o s 1 t a 01 f 2 r a 9/ D /2 08 . . . . . . . . . . . . . . . 47 48 49 50 51 . . . . . . . . . . . . . . . . . a 4137 . . b . . . 8919 . 43 44 45 46 54 . . . . . . 55 56 57 5,441 . . . . . 58 59a 59b 60 61 Add lines 55 through 60. This is your total tax . . . . . . . . . . . . Payments If you have a qualifying child, attach Schedule EIC. 62 63 64a b 65 66 67 68 69 70 71 72 Federal income tax withheld from Forms W-2 and 1099 . . 2011 estimated tax payments and amount applied from 2010 return Earned income credit (EIC) . . . . Nontaxable combat pay election 64b Additional child tax credit. Attach Form 8812 . . . . . . . . . . . . . . . . . . 62 63 64a 65 66 67 68 6,000 5,441 American opportunity credit from Form 8863, line 14 . First-time homebuyer credit from Form 5405, line 10 . Amount paid with request for extension to file . . . Excess social security and tier 1 RRTA tax withheld . . . 69 Credit for federal tax on fuels. Attach Form 4136 . . . . 70 Credits from Form: a 2439 b 8839 c 8801 d 8885 71 A dd lines 62, 63, 64a, and 65 through 71. These are your total payments . . . . . Refund Direct deposit? See instructions. 73 74a b d 75 76 77 If line 72 is more than line 61, subtract line 61 from line 72. This is the amount you overpaid Amount of line 73 you want refunded to you. If Form 8888 is attached, check here . Routing number c Type: Checking Savings Account number 75 Amount of line 73 you want applied to your 2012 estimated tax Amount you owe. Subtract line 72 from line 61. For details on how to pay, see instructions 72 73 74a 6,000 559 559 Amount You Owe 76 No Third Party Designee 77 Estimated tax penalty (see instructions) . . . . . . . Do you want to allow another person to discuss this return with the IRS (see instructions)? Designee’s name Phone no. Yes. Complete below. Personal identification number (PIN) Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Daytime phone number Spouse’s signature. If a joint return, both must sign. Print/Type preparer’s name Date Spouse’s occupation Paid Preparer Use Only Preparer’s signature Dentist Homemaker Identity Protection PIN (see inst. ) PTIN Date Check if self-employed Firm’s name Firm’s address Firms EIN Phone no. Form 1040 (2011)