Assume Josephine and Lorenzo have no itemized deductions. Fill out and prepare Form 1040

FACTS:

Your clients are a married couple who file a joint return:

• Josephine Burns (born 2/5/1974)
• Lorenzo Garcia (born 3/19/1976)

Neither of them wants to contribute to the Presidential Election Campaign. Neither owns, controls or manages any foreign bank accounts. Neither is a grantor or beneficiary of a foreign trust.

The following are relevant family members:

All family members are U.S. citizens, are not disabled or blind, have social security numbers (SSN) and are not married
All family members live with Lorenzo and Josephine all year except for Michelle, who lives in the dormitory during the year but returns home each summer.
Total support for each family member is $25,000. Each one spends all of their income on their own support while Lorenzo and Josephine provide all remaining support.
Ages given are at the end of the year.
Name	Relationship	Age	SSN	Student?	Income
Trevor Garcia	Lorenzo & Josephine's son	10	570-22-8845	Full-time	None
Michelle Burns	Josephine's daughter	23	464-31-2341	Full-time	$12,000
Fiona Forsythe	Josephine's cousin	16	525-21-5547	Full-time	$5,000
Busby Forsythe	Josephine's cousin	21	585-72-1113	Part-time	$3,000

• Form W-2, reporting Josephine’s salary
• Form 1099-DIV, reporting dividend income received Lorenzo
• 2 Forms 1099-INT, reporting interest income received by Lorenzo 

Transcribed Image Text:

a Employee's social security number 456-42-6576 This information is being fumished to the Intenal Pevenue Service. If you OMB No. 1545-0008 are required to file a tax retum, a negligenoe penalty or other sanction may bẻ imposed on you if this income is taxable and you fai to report it. 1 Wages, tips, other compensation $72,000 3 Social security wages $72,000 b Employer identification number (EIN) 2 Federal income tax withheld $8,600 72-4005607 c Employer's name, address, and ZIP code 4 Social security tax withheld $8,928 Proximate Ventures 5 Medicare wages and tips $72,000 6 Medicare tax withheld $2,088 8 Allocated tips 3450 Melville Drive Los Angeles, CA 90038 7 Social security tips d Control number 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Josephine Burns 1561 Saxbury Road Glendale, CA 91020 13 Satry arpoyde THIS-party sek pty 12b plan 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number CA 8675001 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name $72,000 $3,100 Department of the Treasury-Intermal Revenue Service W-2 Wage and Tax Statement 2019 Safe, accurate, ser file FAST! Use Form Copy C-For EMPLOYEE'S RECORDS (See Notice to Employee on the back of Copy B.) a Employee's social security number 456-42-6576 This information is being fumished to the Intenal Pevenue Service. If you OMB No. 1545-0008 are required to file a tax retum, a negligenoe penalty or other sanction may bẻ imposed on you if this income is taxable and you fai to report it. 1 Wages, tips, other compensation $72,000 3 Social security wages $72,000 b Employer identification number (EIN) 2 Federal income tax withheld $8,600 72-4005607 c Employer's name, address, and ZIP code 4 Social security tax withheld $8,928 Proximate Ventures 5 Medicare wages and tips $72,000 6 Medicare tax withheld $2,088 8 Allocated tips 3450 Melville Drive Los Angeles, CA 90038 7 Social security tips d Control number 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Josephine Burns 1561 Saxbury Road Glendale, CA 91020 13 Satry arpoyde THIS-party sek pty 12b plan 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number CA 8675001 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name $72,000 $3,100 Department of the Treasury-Intermal Revenue Service W-2 Wage and Tax Statement 2019 Safe, accurate, ser file FAST! Use Form Copy C-For EMPLOYEE'S RECORDS (See Notice to Employee on the back of Copy B.)

Answer rating: 100% (QA)

FORM 1040 Filing statusmarried filing jointly First nameLorenzo Last nameGracia SSN578332345 Spousen... View the full answer