Test Scenario 3 (NACTP Test 8) Oklahoma Forms: 511, 511-BAT, 511CR, 538-S and State1099G Taxpayer: Baby Sitter 222 Nursery Lane Oklahoma City, OK 73110 SSN: 400-00-5008 – ATS 400-00-5058 – PATS Dependent: John Doe SSN: 400-00-5018 – ATS 400-00-5068 – PAT Modification to Federal return:

• W2: Reduce the W2 wages by $3,000 and the Federal withholding by $100. Add Oklahoma withholding of $75

• 1099G: Add $3,000 of unemployment income with $100 of Federal withholding and $40 of Oklahoma withholding.

• Federal Schedule A: Revise as needed to incorporate the State withholding, but do not change the total on line 29.

511-BAT, line 2 – Only include ‘allowable’ ordinary trade or business expenses. There are unallowable expenses on Form 8829 which flows to the Federal Schedule C, line 30. These expenses must be excluded from Form 511-BAT, line2. The unallowable expenses found on Form 8829 are:

• The portion of line 10 ‘deductible mortgage interest’ included in line 14 and • The line 29 ‘depreciation of your home’.

A completed Form 51-BAT is provided for reference. Additional Information:

• Use the Federal AGI to compute Use Tax. • Donate $7 to the Oklahoma Lupus Revolving Fund (Schedule 511-G, line 16)

Final Result: Refund equals $196 (Form 511, line 34)