QiangGao graduated from college in 2014 and began work as a systems analyst in July 2014. He is preparing to file his income tax return for 2014 and has collected the following financial information for calendar year 2014:
Tuition, scholarships, and grants........ $ 5,750
Scholarship, room, and board...............1,850
Salary ........................................30,250
Interest income .................................185
Deductible expenses, total ..................3,000
Income taxes withheld .......................2,600
a. Prepare Qiang's2014 tax return, using a $6,200 standard deduction, a personal exemption of $3,950, and the tax rates given in Exhibit 3.3. Which tax form should Qiang use, and why?
b. Prepare Qiang's2014 tax return using the data in part a, along with the following information:
IRA contribution ...............$5,000
Cash dividends received .........150
Which tax form should he use in this case? Why?