Assignment
Complete the federal income tax forms for a married couple (information provided in It is up to the student which forms are used from the following list (blank copies of all forms are available in your classroom in Week 5 under Final Paper).
•Form 1040
•Form 1040A
• Schedule 1 (Links to an external site.)Links to an external site. (Form 8849 Nontaxable Use of Fuels)
• Schedule 2 (Links to an external site.)Links to an external site. (Form 8849 Sales by Registered Ultimate Vendors)
•Schedule A (Form 1040) : Itemized Deductions
•Schedule B ( Form 1040A or 1040): Interest and Ordinary Dividends
•Schedule D (Form 1040): Capital Gains and Losses
The assignment can be completed without the TaxAct CD.
Upon completing the return, the student will submit a three to six page paper describing why they chose the forms and how the federal income tax return forms work. The student will submit both the tax return (all forms used) and the paper to their instructor.
Writing the Final Paper
The Final Paper:
1. Must be three to six double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:
•Title of paper
•Student's name
•Course name and number
•Instructor's name
•Date submitted
3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must use at least five scholarly sources, including a minimum of 2 from the Ashford Online Library.
7. Must document all sources in APA style, as outlined in the Ashford Writing Center.
8. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.
Appendix A
Use this information for your Tax Return and Paper.
*All people, businesses, and information are fictional. Any relation to an actual person or business is accidental.
Kenneth Jones
SSN: 0XX-01-1XXX
Date of Birth (DOB): 05/27/1977
Gross Pay: $64,628
401(k) contributions: $5,250
Healthcare costs (payroll deductions): $2,438
Reported wages: $56,940
Social Security Wages: $62,190
Medicare Wages: $62,190
State Wages: $56,940
Taxes withheld:
Federal: $5,640
Social Security: $3,855.78
Medicare: $901.76
State: $723.56
SDI (mandatory disability insurance): $581.65
Employer: PointMark, INC
Address: 1111 One Park Place
City: One City
State: California
Zip code: 11111
Employer's FED ID number: 33-01XXX11
Naomi Jones
SSN: 001-02-XXXX
DOB: 08/11/1980
Gross Pay: $58,192
401(k) contributions: $5,000
Healthcare costs (payroll deductions): $2,164
Reported wages: $51,028
Social Security Wages: $56,028
Medicare Wages: $56,028
State Wages: $51,028
Taxes withheld:
Federal: $4,704
Social Security: $3,473.74
Medicare: $812.41
State: $704.82
SDI (mandatory disability insurance): $523.73
Employer: CompanyOne
Address: 1111 Place Road
City: One City
State: California
Zip code: 11112
Employer's FED ID number: 33-01XXX22
Dependent: Home address:
Derek Jones 123 Rolling Road
SSN: 001-XX-XX00 One City, CA 11111
DOB: 12/29/2013
Child Care Costs: $11,200
Child Care Provider: Kidland Daycare Center
Address: 121 Place Road
City: One City
State: California
Zip code: 11111
Identifying number: 33-XXXX011
Life Change Events
Home Sale:
Primary residence sale price $615,000
Cost basis (incurred three years prior) $400,000
Property Tax paid: $4,700
Mortgage Interest paid: $16,300