Advanced Scenario 7: Vincent and Faith Hunter

Interview Notes

Vincent is a 5th grade teacher at a public school. Vincent and Faith are married and choose to file Married Filing Jointly on their 2024 tax return.

Vincent worked a total of 1,800 hours in 2024. During the school year, he spent $844 on unreimbursed classroom expenses.

Faith retired in 2021 and began receiving her pension on November 1st of that year. She explains that this is a joint and survivor annuity. She has already recovered $1,259 of the cost of the plan.

Vincent settled with his credit card company on an outstanding bill and brought the Form 1099-C to the site. They aren't sure how it will impact their tax return for tax year 2024. The Hunters determined that they were solvent as of the date of the canceled debt.

Faith received $280 from Jury duty.

Their daughter, Hope, is in her second year of college pursuing a bachelor's degree in Physics at a qualified educational institution. She received a scholarship, and the terms require that it be used to pay tuition. Box 2 was not filled in and Box 7 was not checked on her Form 1098-T for the previous tax year. The Hunters provided Form 1098-T and an account statement from the college that included additional expenses. The Hunters paid $1,500 for books and equipment required for Hope's courses. This information is also included on the college statement of account. The Hunters claimed the American Opportunity Credit last year for the first time.

Hope does not have a felony drug conviction.

They are all U.S. citizens with valid Social Security numbers.

benefits paid in 2024: $23899

Paid by check or direct deposit: $19,412.60

Medicare Part B premiums deducted from your benefits $2,096.40

Voluntary Federal Income Tax Withholding $2,390

Advanced Scenario 7: Retest Questions

1. All of Faith's Social Security benefits are taxable according to the Social Security benefits worksheet.

a. True

b. False