Form 1040X
Response to the following problem:
Eight months after filing their 2014 tax return with the IRS Center in Memphis, Tennessee, Jack L. (SSN 347-47-5784) and Judith K. (SSN 457-58-4758) Keith of 1618 Redford Lane, Kingsport, Tennessee 37664-3322, they realize they forgot to report their contribution of 20 shares of stock in the ABC Corporation that they made to their church on November 7, 2014. The Keiths purchased the stock for $1,200 on August 6, 2003. Its FMV on November 7, 2014 was $2,000.
The Keiths filed a joint return and claimed one dependent. Information from the 2014 Form 1040 that had been filed includes:
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AGI (no qualified dividends or net capital gain)
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$96,000
|
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Itemized deductions
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24,370
|
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Taxable income
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59,780
|
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Total tax liability
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8,059
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Child tax credit
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1,000
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Federal income tax withheld
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6,600
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Amount paid with original return
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459
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The Keiths have not been advised that their 2014 income tax return is under audit. Prepare an Amended U.S. Individual Income Tax Return, Form 1040X, for the Keiths. They file the amended return on December 6, 2015.