Advanced Workshop Return 7
Title:
Summary:
Advanced Workshop Return 7
In this lesson, you will learn the following:
1) Create multiple W-2s;
2) Complete K-1 Worksheet from a fiduciary;
3) Complete Schedule B, Interest and Ordinary Dividends;
4) Complete Schedule D, Capital Gains and Losses;
5) Complete Schedule E, Supplemental Income and Loss;
6) Compare itemized and standard deductions;
7) Create the e-file.
Average completion time: 1 hour, 10 minutes
Steps for Advanced Workshop Return 7
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Log in to your user name. Use “TRAINING” if you plan to practice electronically
filing these returns through the TaxWise Training Electronic Filing Center.
Start a new return using 307-XX-XXXX. Use your company’s EFIN for “XXXXXX” if you are in the Training user name. Otherwise, use a unique number agreed
upon by your company.
Ann Sanderson and John Hanson are married and wish to file a joint return.
They reside at 14 Ridge Ferry Way, Cedartown, GA 30125.
Ann’s date of birth is April 23, 1971.
John’s date of birth is January 15, 1969.
Ann worked at Impeccable Pets as a sales clerk.
John worked at American General Finance as a manager trainee.
Ann’s father, Richard R. Sanderson, passed away last year and left part of his estate
to Ann. She received a Schedule K-1 from the estate.
None of the interest income on the Schedule K-1 is from a foreign account.
Ann and John wish to itemize.
On June 1, they donated clothing to the Hospitality House located at 7 Main Street,
Cedartown, GA 30125. The cost of the items was $725 when purchased in May of
2000. The thrift store value at the time of the donation was $350.
These are the other expenses they wish to claim:
Doctor Bills .................$2,698
Eyeglasses ......................$465
Prescriptions ...................$823
Surgery ........................$1,709
Personal Property Taxes $536
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Hospitality House...........$100
Heart Association ...........$125
Red Cross .......................$125
Tax preparation fees .......$150
They wish to electronically file their return. They will do this on April 1. If they will
receive a refund, they would like it mailed, and if they owe, they will mail a check on
the same day they file the return.
Their last year’s tax was $4,255.
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Advanced Workshop Return 7
Social Security Card
Social Security Card
ANN MARIE SANDERSON
JOHN PAUL HANSON
307-XX-XXXX
490-XX-XXXX
RECIPIENT’S name, address, and telephone number
Cedartown First Bank
8662 Rome Highway
Cedartown, GA 30125
OMB No. 1545-0901
20XX
Form 1098
RECIPIENT’S Federal
PAYER’S social security no.
14-6XXXXXX
307-XX-XXXX
PAYER’S/BORROWER’S name
Ann Sanderson and John Hanson
Street address (including apt no.)
14 Ridge Ferry Way
City, State, and ZIP code
1 Mortgage interest received from
payer(s)/borrower(s)
$
2 Points paid on purchase of principal
residence
$ 2,645.00
3 Refund of overpaid interest
$
4 Real Estate Taxes:
$ 3,000.00
Mortgage
Interest
Statement
Copy C
For Recipient
For Privacy Act
And Paperwork
Reduction Act
Notice, see the
20XX General
Instructions for
Forms 1099,
1098, 5498,
and W-2G.
Cedartown, GA 30125
Account number (optional)
Form 1098
Department of the Treasury – Internal Revenue Service
2
Advanced Workshop Return 7
A Control number
OMB No. 1545-0008
B Employer Identification Number
14-7XXXXXX
C Employer’s name, address, and ZIP code
Impeccable Pets
19 Hicks Drive
Rome, GA 30161
D Employee’s social security number
307-XX-XXXX
E Employee’s name, address, and ZIP code
1 Wages, tips, other
compensation
$ 13,625.00
3 Social security wages
$ 13,625.00
5 Medicare wages and tips
$ 13,625.00
7 Social security tips
$
9 Advance EIC payment
$
11 Nonqualified plans
$
Ann Sanderson
14 Ridge Ferry Way
Cedartown, GA 30125
13
15
State
Employers State
ID no.
16 State
wages, tips,
etc.
GA
254569999
$ 13,625.00
Form W-2 Wage and Tax Statement
Statutory
Employee
17 State income tax
Pension
Plan
2 Federal income tax withheld
$ 1,000.00
4 Social security tax withheld
$ 844.75
6 Medicare tax withheld
$ 197.56
8 Allocated tips
$
10 Dependent care benefits
$
12a See instructions for box 12
Code
$
12b
Code
$
12c
Code
$
12d
Code
$
Third-party
14 Other
Sick pay
18 Locality
name
19 Local
20 Local Income
wages, tips,
tax
etc.
$ 139.68
$
$
Department of the Treasury – Internal Revenue Service Center
3
Advanced Workshop Return 7
A Control number
OMB No. 1545-0008
B Employer Identification Number
14-8XXXXXX
C Employer’s name, address, and ZIP code
American General Finance
1365 Shorter Avenue
Rome, GA 30165
D Employee’s social security number
490-XX-XXXX
E Employee’s name, address, and ZIP code
1 Wages, tips, other
compensation
$ 32,415.00
3 Social security wages
$ 33,102.96
5 Medicare wages and tips
$ 33,102.96
7 Social security tips
$
9 Advance EIC payment
$
11 Nonqualified plans
$
John Hanson
14 Ridge Ferry Way
Cedartown, GA 30125
13
15
State
Employers State
ID no.
Statutory
Employee
Pension
Plan
X
2 Federal income tax withheld
$ 3,000.00
4 Social security tax withheld
$ 2,052.38
6 Medicare tax withheld
$ 479.99
8 Allocated tips
$
10 Dependent care benefits
$
12a See instructions for box 12
Code
D
$ 687.96
12b
Code
$
12c
Code
$
12d
Code
$
Third-party
14 Other
Sick pay
16 State
17 State income tax 18 Locality
19 Local
wages, tips,
name
wages, tips,
etc.
etc.
GA
14-8XXXXXX
$ 32,415.00
$ 1,531.33
$
Form W-2 Wage and Tax Statement
Department of the Treasury – Internal Revenue Service Center
20 Local Income
tax
$
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Advanced Workshop Return 7
Schedule K-1
(1041)
Department of the Treasury
Internal Revenue Service
20XX
Tax year beginning
_____________,
20XX and ending
____________,
20_____
Beneficiary’s Share of Income, Deductions,
Credits, etc.
See back of form and instructions
Part I Information About the Estate or Trust
A Estate’s or Trust’s employer identification number
14-9XXXXXX
B Estate’s or Trust’s name
Final K-1
Amended K-1
Part III Beneficiary’s Share of Current Year
Income, Deductions, Credits, and Other
Items
1 Interest Income
11 Final year
deductions
$5,329.00
B $3,000.00
2a Ordinary dividends
$2,345.00
2b Qualified dividends
3 Net short-term capital
gain
$6,845.00
4a Net long-term capital
gain
4b 28% rate gain
Richard R. Sanderson
4c Unrecaptured
section 1250 gain
C Fiduciary’s name, address, city, state, and ZIP code
5 Other portfolio and
nonbusiness income
$ 425.00
6 Ordinary business
income
Robert Heckle, Attorney at Law
18 Bridgepoint Plaza
Rome, GA 30161
D Check if Form 1041-T was filed and enter the date
filed
E Check if this is the final Form 1041 for the estate or
trust
F Tax shelter registration number, if
any__________________
G Check if Form 8271 is attached
Part II Information About the Beneficiary
H Beneficiary’s identifying number:
307-XX-XXXX
I Beneficiary’s name, address, city, state and ZIP code:
Ann Marie Sanderson
14 Ridge Ferry Way
Cedartown, GA 30125
7 Net rental real estate
income
$ 1,566.00
12 Alternative
minimum tax
adjustment
13 Credits and credit
recapture
14 Other Information
A
$1,644.00
8 Other rental income
9 Directly apportioned
deductions
A
$ 230.00
10 Estate tax deduction
$ 455.00
*See attached
statement for
additional information
For IRS Use Only
J Domestic beneficiary X or
Foreign beneficiary
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