Please answer questions 9-12

Chapter 10: Learning Activity Scenario 1- Wesley and Anne Wesley has been divorced from Anne for six months. They have not lived together for two years. Prior to their final divorce decree, they filed joint returns. During the time they were separated, Anne won $25,000 from the lottery. Wesley was unaware that Anne had lottery winnings, which she failed to report. Wesley and Anne have received notification from the Internal Revenue Service that their return has been changed to reflect an increase in income and tax liability due to the lottery winnings. They have also been assessed with interest and penalties. Are both Wesley and Anne liable for any tax, interest, or penalty due? Should Wesley file a request for innocent spouse relief because he had no knowledge of the lottery winnings? Scenario 2 - Daniel and Penny Strickland Complete a tax return for the Stricklands. Daniel (age 35, DOB: 4/21/1983, SSN: 502-00-1589) and Penny Strickland (age 29, DOB: 11/25/1989, SSN: 223-00-8146) were married in August and have decided to file a joint retum. They live at 3434 Persimmon Way, Your City. Your State - Your ZIP. They did not live in a community property state at any time during the tax year. Both Daniel and Penny wish to contribute $3 to the Presidential Election Campaign. They were both covered by a health insurance plan for the entire year. Daniel has two children from a previous marriage for whom he is currently paying child support. Three years ago, Daniel was out of work for 18 months due to a medical condition and as a result, his child support payments became delinquent. The Internal Revenue Service was notified of his arrearage and seized his previous year's federal tax refund. Daniel still owes more than $12,000 in delinquent child support and is aware that his current year federal tax refund will also be seized. Penny wants to ensure that she receives her portion of the refund. Penny is still paying on student loans and paid $969 in student loan interest during the tax year. Daniel is a nurse and Penny is a teacher, they have been employed all year taxes withheld from their wages. Their financial statements follow the questions below. both had federal If Penny files a joint return with Daniel and she is due a refund, could her part of the refund be seized by the IRS for the delinquent child support? Is Penny responsible for Daniel's child support debt? Could Penny choose to file Married Filing Separately? Could Penny file a joint return with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers? 1 Wages. fps. other compensation 2 Federal income x witteld a Employee's SSN 223-00-8146 OMB No. 1545-cO08 38442.00 5266.30 3 Social security wages 4 Social security tzx wihheid 2457.80 39642.00 5 Medicare wages and tps 6 Medicare tax withhels bEmployer identfication rumber 57-5544661 574,81 39642.00 cEmployer's name adoress and ZIPcode Sacred Heart Academy 200 Seminary Lane Your City, Your State- Your ZIP e Employee's finstname and intal Penny Last name Suf. Strickland 3434 Persimmon Way Your City, Your State- Your ZIP 1Employee's address and ZIP code d Control Number 7 Social Securty fips 8 Allocated fips 10 Dependent cane benefa 11 Nonqualifed plars 12a 14 Cther 1200.00 12 12 124 Retrement Thad party sick pay 13 Statuary employoe Employer's stae Drumter plan 15 Stae 18 State wges fos et 17 State income tax 2437.68 YS 575544661 38442.00 13 Local wages, fps, etc 19 Local income tax 20 Locality rame Copy B to be filed with W-2 20XX Fom Wage and Tax Sttenert employee's Federal Income Tax Return This information is being furnished to the Intemal Revenue Service. H you are required to file a tax retum, a negligence penalty or other sanction may be imposed on you if this income is taxable and you tfail to report it. Employes's social securty rumber 502-00-1589 OME Na.1545-0CC8 e flle bEmployer idertiication rumter (EIN) 63-0005123 C Employer's name, address, and ZIP code St. Mary's Hospital 1Wages, lips, oter compersation 42681.52 2 Federal income tax witneid 3614.56 4 Social secutty sax witteid 2646.25 3 Social security wages 42681.52 5 Medicare wages and tps 6 Medicare tax wihteid 211 Wheaton Blvd Your City, Your State - Your Zip 42681.52 618.88 7Socal securty ips 8Alocated fps d Contol rumber S Venfication code 10 Dependert care berefts e Employee's trst name and intal Last name Suft. 11 Norqualfed plans 12a Seeirstuctions far box 12 Daniel Strickland 13 Statuy Retiement Thirogarty engloyen pan 12 sk pay 3434 Persimmon Lane Your City, Your State - Your Zip 14 Oter 12c 124 TEmplayee's actress and ZIP code 15 S Emplyer's state D number 18 Sate wages. fps, et 17 Ste income tax 18 Local wages, ips, et 9 Local income tax 2 Locaity name YS 630005123 42681.52 2207.28 Form W-2 Wage and Tax Copy B- To Be Filed Wth Employee's FEDERAL Tax Return. This intormation is being fumished to the Intemal Revenue Service. Departrent af the Treasury - Intemal Reverue Serice 20XX Statement Answer the following question based on the tax retum you prepared for Daniel and Penny Strickland. Select the total standarditemized deductions: C A) $12,000 C B) $24,000 C c) $18,000 C D) s25,300 10. Answer the following question based on the tax retum you prepared for Daniel and Penny Srickland. Select the tax from the Tax Tables: C A) $6,907 C B) s8,298 C c) s9,518 C Dj s6,360 11. Answer the following question based on the tax return you prepared for Daniel and Penny Strickland. Select the total payments: C A) S10,081 B) S 8,881 C C) $ 9,681 C D) $ 9,781 12. Answer the following question based on the tax return you prepared for Daniel and Penny Strickland. Select the refund: C A) S2,521 C B) s 563 C c) $3,490 C Dj $1,974 Chapter 10: Learning Activity Scenario 1- Wesley and Anne Wesley has been divorced from Anne for six months. They have not lived together for two years. Prior to their final divorce decree, they filed joint returns. During the time they were separated, Anne won $25,000 from the lottery. Wesley was unaware that Anne had lottery winnings, which she failed to report. Wesley and Anne have received notification from the Internal Revenue Service that their return has been changed to reflect an increase in income and tax liability due to the lottery winnings. They have also been assessed with interest and penalties. Are both Wesley and Anne liable for any tax, interest, or penalty due? Should Wesley file a request for innocent spouse relief because he had no knowledge of the lottery winnings? Scenario 2 - Daniel and Penny Strickland Complete a tax return for the Stricklands. Daniel (age 35, DOB: 4/21/1983, SSN: 502-00-1589) and Penny Strickland (age 29, DOB: 11/25/1989, SSN: 223-00-8146) were married in August and have decided to file a joint retum. They live at 3434 Persimmon Way, Your City. Your State - Your ZIP. They did not live in a community property state at any time during the tax year. Both Daniel and Penny wish to contribute $3 to the Presidential Election Campaign. They were both covered by a health insurance plan for the entire year. Daniel has two children from a previous marriage for whom he is currently paying child support. Three years ago, Daniel was out of work for 18 months due to a medical condition and as a result, his child support payments became delinquent. The Internal Revenue Service was notified of his arrearage and seized his previous year's federal tax refund. Daniel still owes more than $12,000 in delinquent child support and is aware that his current year federal tax refund will also be seized. Penny wants to ensure that she receives her portion of the refund. Penny is still paying on student loans and paid $969 in student loan interest during the tax year. Daniel is a nurse and Penny is a teacher, they have been employed all year taxes withheld from their wages. Their financial statements follow the questions below. both had federal If Penny files a joint return with Daniel and she is due a refund, could her part of the refund be seized by the IRS for the delinquent child support? Is Penny responsible for Daniel's child support debt? Could Penny choose to file Married Filing Separately? Could Penny file a joint return with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers? 1 Wages. fps. other compensation 2 Federal income x witteld a Employee's SSN 223-00-8146 OMB No. 1545-cO08 38442.00 5266.30 3 Social security wages 4 Social security tzx wihheid 2457.80 39642.00 5 Medicare wages and tps 6 Medicare tax withhels bEmployer identfication rumber 57-5544661 574,81 39642.00 cEmployer's name adoress and ZIPcode Sacred Heart Academy 200 Seminary Lane Your City, Your State- Your ZIP e Employee's finstname and intal Penny Last name Suf. Strickland 3434 Persimmon Way Your City, Your State- Your ZIP 1Employee's address and ZIP code d Control Number 7 Social Securty fips 8 Allocated fips 10 Dependent cane benefa 11 Nonqualifed plars 12a 14 Cther 1200.00 12 12 124 Retrement Thad party sick pay 13 Statuary employoe Employer's stae Drumter plan 15 Stae 18 State wges fos et 17 State income tax 2437.68 YS 575544661 38442.00 13 Local wages, fps, etc 19 Local income tax 20 Locality rame Copy B to be filed with W-2 20XX Fom Wage and Tax Sttenert employee's Federal Income Tax Return This information is being furnished to the Intemal Revenue Service. H you are required to file a tax retum, a negligence penalty or other sanction may be imposed on you if this income is taxable and you tfail to report it. Employes's social securty rumber 502-00-1589 OME Na.1545-0CC8 e flle bEmployer idertiication rumter (EIN) 63-0005123 C Employer's name, address, and ZIP code St. Mary's Hospital 1Wages, lips, oter compersation 42681.52 2 Federal income tax witneid 3614.56 4 Social secutty sax witteid 2646.25 3 Social security wages 42681.52 5 Medicare wages and tps 6 Medicare tax wihteid 211 Wheaton Blvd Your City, Your State - Your Zip 42681.52 618.88 7Socal securty ips 8Alocated fps d Contol rumber S Venfication code 10 Dependert care berefts e Employee's trst name and intal Last name Suft. 11 Norqualfed plans 12a Seeirstuctions far box 12 Daniel Strickland 13 Statuy Retiement Thirogarty engloyen pan 12 sk pay 3434 Persimmon Lane Your City, Your State - Your Zip 14 Oter 12c 124 TEmplayee's actress and ZIP code 15 S Emplyer's state D number 18 Sate wages. fps, et 17 Ste income tax 18 Local wages, ips, et 9 Local income tax 2 Locaity name YS 630005123 42681.52 2207.28 Form W-2 Wage and Tax Copy B- To Be Filed Wth Employee's FEDERAL Tax Return. This intormation is being fumished to the Intemal Revenue Service. Departrent af the Treasury - Intemal Reverue Serice 20XX Statement Answer the following question based on the tax retum you prepared for Daniel and Penny Strickland. Select the total standarditemized deductions: C A) $12,000 C B) $24,000 C c) $18,000 C D) s25,300 10. Answer the following question based on the tax retum you prepared for Daniel and Penny Srickland. Select the tax from the Tax Tables: C A) $6,907 C B) s8,298 C c) s9,518 C Dj s6,360 11. Answer the following question based on the tax return you prepared for Daniel and Penny Strickland. Select the total payments: C A) S10,081 B) S 8,881 C C) $ 9,681 C D) $ 9,781 12. Answer the following question based on the tax return you prepared for Daniel and Penny Strickland. Select the refund: C A) S2,521 C B) s 563 C c) $3,490 C Dj $1,974