Question: please complete all parts with given instructions - Based on the facts below, prepare for Shelli Thomson her US (federal) individual income tax return (Form

please complete all parts with given instructions  please complete all parts with given instructions - Based on the
facts below, prepare for Shelli Thomson her US (federal) individual income tax
return (Form 1040), her Schedule A (Itemized Deductions), Schedule 3 (Additional Credits

- Based on the facts below, prepare for Shelli Thomson her US (federal) individual income tax return (Form 1040), her Schedule A (Itemized Deductions), Schedule 3 (Additional Credits and Payments). - You can use either the forms and schedules posted on Canvas or download the forms and schedules from irs.gov. - You can upload on Canvas the forms, schedules, and any other document as a Word document, PDF, scanned document, or screen shot. - If you cannot type and/or do not have access to a computer, you can complete the forms and schedules by hand (i.e., manually using pen or pencil) and upload them to Canvas 1. Step 1: Review the attached Word Document 2. Step 2: Choose taxpayer's filing status 3. Step 3: Determine if the taxpayer has dependent children and/or dependent relative 4. Step 4: Identify 1) items that are included and excluded from gross income; and 2 ) items that are deductible and not deductible from gross income 5. Step 5: Determine if the taxpayer should claim a standard deduction or itemize deductions 6. Step 6: Determine the taxpayer's tax credits 7. Step 7: Calculate the taxpayer's adjusted gross income, taxable income, and amount of tax refund or taxes owed 8. Step 8: Complete Form 1040, individual income tax return, Schedule 3 , additional credits and payments, Schedule A, itemized deductions, and other relevant tax forms FACTS 1. Shelli Thomson works as a chemist for Sargent Chemical Corp. 2. Shelli Thomson's a. Birthday is January 1, 1970; b. Social Security number is 111-11-1113; c. Address is 7605 Walnut Street, Los Angeles, CA 90013 ; d. Tax return filing status is single; and e. Her ordinary income tax rate is 10%. 3. For line 11 of the Form 1040, multiply the total amount of income you entered on line 10 of the Form 1040 by 10% (Shelli's income tax rate) and enter that amount on line 11. 4. For the taxable year, Shelli: a. Earned $50,000 in wages as a chemist b. Her employer, Sargent Chemical Corp, did not withhold federal and state income taxes; c. Received $200 of interest on her savings bank account; d. Paid $7,000 in out-of-pocket medical expenses including co-pays for prescription drugs and doctor appointments; e. Paid property (real estate) taxes of $5,000 to the city of Los Angeles; f. Paid $10,000 in home mortgage interest on her home mortgage. Her mortgage was $100,000 and was secured by her home; g. Incurred a $2,000 theft loss; h. Incurred a $3,000 casualty loss after her home was damaged by a tornado in a federally declared disaster area; i. Donated $200 in cash to a tax-exempt charity; and j. Can claim a $500 American Opportunity Credit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!