11

Chapter

Review
This review incorporates some of the main concepts covered
in Chapters 1 through 10, and allows you to practice these
concepts by preparing a tax return. Check your completed
return against the Review 1 Answer Key in the BTP Resource
Guide, taking time to review the discussion points.

Basic Tax Preparation

Review 1 | 11-1

11-2 | Review 1

Basic Tax Preparation

chapter
p
11
Review 1
R
T
Tax Return Exercise
Refer to the Review 1 Answer Key section in the BTP Resource Guide. Include
your own city, state, and ZIP Code when Your City, YS and ZIP Code is noted.

Prepare a joint tax return for Dale and Marcie Greer.

Dale Greer (01-01-1955, 400-00-2000), married, chef
Marcie Greer (03-12-1955, 410-00-2000), spouse, health care coordinator
213 Fern Lake Terrace, Your City, YS and ZIP Code
(They lived here all year and paid more than half the cost of keeping up their home.)

Dale and Marcie had minimum essential health care coverage all year purchased
through Marcies employer. Marcie did not receive a 1095-B or 1095-C.
They have the following potential dependents, all of whom had minimum essential health care
coverage all year through a government-sponsored program. They did not receive a 1095-B:

Portia Dean (11-07-1979, 401-00-2000), daughter, divorced for three years, manager

She lived with her parents all year.

Her only income is wages of $12,527.

Her parents provided more than half of her support.

Raul DeJesus (08-30-1999, 402-00-2000), foster child, high-school student

Raul was placed with Dale and Marcie by an authorized placement agency
two years ago.

He lived with Dale and Marcie all year.

His only income was wages of $4,109 from a part-time job.

Dale and Marcie provided more than half of his support.

Angelo Dean (04-04-2001, 403-00-2000), Portias son, high-school student

He lived with his mother and grandparents all year.

He has no income.

His grandparents provided more than half of his support.

Both Angelos mother and his grandparents would like to claim him.

Myra Andrews (12-30-2004, 404-00-2000), great-niece, middle-school student

She lived with the Greers for 10 months during the year.

She moved in with Dale and Marcie when her parents (the Greers niece, Amy
Andrews, and her husband, Kenny) moved away. The Greers have not seen
or heard from Amy and Kenny since they dropped Myra off at their home.
Amys grandparents (Dales brother, Daniel Greer, and his wife, Tyra) visit Myra
sometimes, but she has never lived with them.

She has no income.

Dale and Marcie provided more than half of her support.

Her Aunt Portia, and her Uncle Dale and Aunt Marcie, would like to claim her.

Basic Tax Preparation

Review 1 | 11-3

In addition to the income shown on the Greers W-2s, Dale received interest from his bank
account (reported to him on Form 1099-INT) and dividends from Sakura Motors (reported to
him on Form 1099-DIV). Dale held the Sakura Motors stock all year. Lastly, Marcie withdrew
$500 from her retirement plan at work to pay some bills (reported to her on Form 1099-R).
In addition to the amounts shown on the Greers Form 1098, they paid the following expenses
during the year:
Medical and Dental Expenses
Co-pays (doctors and dentists) ............................................................. $180
Dental insurance (paid with after-tax funds; not included in Marcies
employer-sponsored health insurance plan)......................................... $936
Prescriptions ......................................................................................... $233
Lab fees (positive lead paint poisoning tests for Myra)........................... $70
Lead-based paint removal from Myras bedroom .............................. $2,500
Taxes Paid
Personal property taxes (cars).............................................................. $199
Interest Paid
Personal credit card interest .............................................................. $1,284
Charitable Contributions
Church (weekly donations made by check) ....................................... $3,847
Other qualified donations made by check............................................. $485
Fair market value (FMV) of clothing (good condition) to Goodwill ........ $100
They have statements to support their contributions.
When Myra is not in school, Portia, Angelo, and, on occasion, her grandparents take care of her.
Dale and Marcie have school records for Raul, Angelo, and Myra. They also provided a
placement agency statement for Raul. They have not claimed the Earned Income Tax Credit
(EITC) in prior years.
Aside from this years distribution, the Greers have never received any retirement plan
distributions and do not plan to withdraw any more from a retirement plan by the due date of
their return (including extensions).
Dale and Marcie provided copies of their Forms W-2, 1099-R, 1099-INT, 1099-DIV, and 1098.
If the Greers receive a refund, they would like for it to be mailed via IRS check. If they have a
balance due, they plan to mail a check with the 1040-V payment voucher.

11-4 | Review 1

Basic Tax Preparation

a. Employee's social security number

22222

OMB No. 1545-0008

400-00-2000

b. Employer identification number (EIN)

Wages, tips, other compensation

Social security wages

Medicare wages

Social security tips

00-0200000

2.

Federal income tax withheld

Social security tax withheld

Medicare tax withheld

Allocated tips

10

Dependent care benefits

9488.19

c. Employer's name, address, and ZIP code

SEAR

148.82

9488.19

705 E 9TH STREET

9488.19
YS

ZIP CODE
9

d. Control number

e. Employee's first name and initial

137.58

Last name

Suff.

GREER

11

Statutory
Employee

12a

Retirement
Plan

Third Party
Sick Pay

See instructions for box 12

12b

Code

13

Nonqualified plans

Code

YOUR CITY

DALE

588.27

14

Other

12c

Code

213 FERN LAKE TERRACE

YS

ZIP CODE

12d

Code

YOUR CITY
f. Employee's address and ZIP code
15 State

Employer's state ID number

YS

Form

16 State wages, tips, etc.

2000

W-2

17 State income tax

9488.19

Wage and Tax

Statement

18 Local wages, tips, etc.

474.41

19 Local income tax

9488.19

20 Locality name

94.88

YLC

Department of the TreasuryInternal Revenue Service

2015

Copy BTo Be Filed With Employees FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

a. Employee's social security number

22222

OMB No. 1545-0008

410-00-2000

b. Employer identification number (EIN)

Wages, tips, other compensation

00-0200001

2.

Federal income tax withheld

Social security tax withheld

Medicare tax withheld

Allocated tips

10

Dependent care benefits

34076.03

c. Employer's name, address, and ZIP code

Social security wages

Medicare wages

Social security tips

COUNTY MEDICAL SERVICES

35869.51

540 NICHE ROAD

2223.91

35869.51
YS

ZIP CODE
9

d. Control number

e. Employee's first name and initial

520.11

Last name

Suff.

GREER

11

13

Nonqualified plans

Statutory
Employee

12a

Retirement
Plan

Third Party
Sick Pay

1793.48

DD

3407.60

12c

Code

Other

See instructions for box 12

12b

Code

X
14

213 FERN LAKE TERRACE

Code

YOUR CITY

MARCIE

1766.40

YS

ZIP CODE

12d

Code

YOUR CITY
f. Employee's address and ZIP code
15 State

YS

Form

Employer's state ID number

16 State wages, tips, etc.

20001

W-2

Wage and Tax

Statement

17 State income tax

34076.03

1703.80

2015

18 Local wages, tips, etc.

19 Local income tax

34076.03

340.76

20 Locality name

YLC

Department of the TreasuryInternal Revenue Service

Copy BTo Be Filed With Employees FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Basic Tax Preparation

Review 1 | 11-5

Hammerhead Bank
3701 Daughter Road
Your City, YS, ZIP CODE
100.00

00-0200005

400-00-2000

Dale Greer

213 Fern Lake Terrace

Your City, YS, ZIP CODE

Form 1099-DIV - Dividends and Distributions

PAYER'S name, street address, city or town, province or state, ZIP or foreign

1a Total ordinary dividends

postal code, and telephone no.

$ 325.67
1b Qualified dividends

Sakura Motors
3211 Wheeling Way
Your City, YS ZIP CODE
PAYER'S federal identification number

RECIPIENT 'S identification number

00-0200004

400-00-2000

RECIPIENT'S name

Dale Greer

Street address (including apt. no.)

2b Unrecap. Sec. 1250 gain

$
2c Section 1202 gain

$
2d Collectibles (28%) gain

$
3

$
Nondividend distributions 4

$
8

City or town, province or state, country and ZIP or foreign postal code

Your City, YS ZIP CODE

Foreign tax paid

Cash liquidation distr.

1099-DIV

11-6 | Review 1

.
.

2nd TIN not.

For Privacy Act and

Federal inc tax withheld

and Paperwork

$
5

Investment expenses

$
7

Notice, see the

2015 General

Fgn ctry or U.S. possession

Reduction Act

Instructions for
Certain Information

FATCA filing 10 Exempt -interest dividends

requirement

Form

Dividends and
Distributions

$
2a Total capital gain distr.

213 Fern Lake Terrace

Account number (see instructions)

2015

325.67

Noncash liquidation distr.

Returns.

$
11 Specified private activity
bond interest dividends

$
$
12 State 13 State identif. no. 14 State tax withheld
$

Basic Tax Preparation

500.00

Yorker Retirement Fund

36124 Bouncer Way
Your City, YS, ZIP CODE

500.00

00-0200006

410-00-2000

100.00

Marcie Greer

213 Fern Lake Terrace

Your City, YS ZIP CODE

CORRECTED (if checked)

RECIPIENTS/LENDER'S name, street address, city or town, province or state,
country, ZIP or foreign postal code, and telephone number

USA Bank
9034 Dunlevy Cir.
Your City
YS ZIP Code
(800) 000-2010
RECIPIENTS federal identification no.

00-0200003

2015

PAYER'S social security number

400-00-2000

$
3 Refund of overpaid interest

Street address (including apt. no.)

213 Fern Lake Ter.

City or town, province or state, country, and ZIP or foreign postal code

YS ZIP Code

Account number (see instructions)

(keep for your records)

Basic Tax Preparation

$ 507.01 Real estate tax

5

www.irs.gov/form1098

Mortgage
Interest
Statement
Copy B
For Payer/Borrower

2 Points paid on purchase of principal residence

Dale & Marcie Greer

Form 1098

1 Mortgage interest received from payer(s)/borrower(s)*

$ 4154.56

PAYER'S/BORROWER'S name

Your City

* Caution: The amount shown

OMB No. 1545-0901
may not be fully deductible by you.
Limits based on the loan amount
and the cost and value of the
secured property may apply. Also,
you may only deduct interest to
the extent it was incurred by you,
actually paid by you, and not
reimbursed by another person.
Form 1098

The information in boxes 1,

2, 3, and 4 is important tax
information and is being
furnished to the Internal
Revenue Service. If you are
required to file a return, a
negligence penalty or other
sanction may be imposed on
you if the IRS determines
that an underpayment of tax
results because you
overstated a deduction for
this mortgage interest or for
these points or because you
did not report this refund of
interest on your return.

Department of the Treasury - Internal Revenue Service

Review 1 | 11-7

11-8 | Review 1

Basic Tax Preparation