Courtney Smathers Fall 2016 - WordPress.comSamuel and Abigail Johnson Fall 2016 2-3 Interview Notes...

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  • Courtney Smathers Fall 2016


  • Courtney Smathers Fall 2016


  • Courtney Smathers Fall 2016


    Interview Notes – very simple return

    Courtney Smathers is a teenager who lives with her parents and is a full-time

    resident of Massachusetts.

    You verify her Social Security number is 256-00-7210.

    Courtney is a full-time high school student and works part time weekends and

    summers at Food Basket as a cashier to save for college.

    Courtney’s parents provide all of her support and she is covered under her

    mother’s health insurance plan.

  • Courtney Smathers Fall 2016


  • Samuel and Abigail Johnson Fall 2016


  • Samuel and Abigail Johnson Fall 2016


  • Samuel and Abigail Johnson Fall 2016


    Interview Notes – simple retiree return

    Social security cards provided:

    Samuel Johnson 357-00-7210

    Abigail Johnson 358-00-7210

    Sam and Abby have been married for 50 years. Both are retired. They sold the big house

    where they raised their family and now live in an in-law apartment in their daughter’s home.

    They pay no rent.

    Sam retired from Big D Incorporated, a major defense contractor, and receives an annual


    They are also both taking their required distributions from the IRAs they established from

    rolling over 401(K) accounts.

    They did not itemize deductions last year.

    Sam and Abby were on Medicare for the entire year.

  • Samuel and Abigail Johnson Fall 2016


  • Samuel and Abigail Johnson Fall 2016


  • Samuel and Abigail Johnson Fall 2016


  • Sheryl Berringer Fall 2016


  • Sheryl Berringer Fall 2016


  • Sheryl Berringer Fall 2016


    Interview Notes - adapted from 2013 Pub 4491W

    Social security cards provided

    Sheryl Beringer 031-00-7210

    Courtney Johnson 032-00-7210

    Artis Johnson 033-00-7210

    Monica Jesse 034-00-7210

    Willie W. Cash 035-00-7210

    Sheryl has two children, Courtney and Artis Johnson, who live with her full time. She

    has been divorced since 2009. She paid all the household expenses and provided all of

    her children’s support.

    Sheryl’s mother, Monica Jesse, also lives with her full time and Sheryl provides over

    half of her support. Monica’s only income is from Social Security and a small amount of

    bank interest. She spends her SSA benefits on her medical expenses and does not

    contribute to the household expenses.

    Sheryl did not itemize on last year’s return.

    Sheryl is repaying a student loan and received a statement from the lending institution

    showing that she had paid $395.67 in interest last year.

    Sheryl’s friend, Willie Cash, lost his home and moved in with her April 18 of the tax

    year. He does not have any income and is currently looking for work. Sheryl would

    like to claim Willie as a dependent.

    Sheryl rents her home, paying $1000 per month.

    Sheryl’s company provides health insurance for her and her two children. She

    provides Forms 1095C and MA 1099-HC showing she had full-year Aetna insurance

    with a plan ID of 06-6033492 and subscriber number of 12345678. Monica is on


  • Sheryl Berringer Fall 2016


  • Timothy and Nicole Sterling Fall 2016


  • Timothy and Nicole Sterling Fall 2016


  • Timothy and Nicole Sterling Fall 2016


    Interview Notes - adapted from 2013 Pub 4491-W

    Social security cards provided:

    Timothy A. Sterling 251-00-7210

    Nicole S. Sterling 252-00-7210

    Christina Summers 253-00-7210

    Timothy and Nicole have been married for over 40 years. Timothy retired from the

    International Brotherhood of Electrical Workers on January 1, 2009 and elected to take

    a joint and survivor annuity at that time.

    Nicole was hit by a car and severely injured. She was granted Social Security Disability

    as a result of her injury.

    Timothy’s sister, Christina Summers, lived with them all year. She is totally and

    permanently disabled and relies upon her brother for her support. She received $250

    per month in social security benefits.

    Nicole has less than 20/200 vision in both eyes. She provided a doctor’s statement

    that she is legally blind..

    Timothy’s brokerage statement shows that he purchased 100 shares of Domestics

    stock on March 12, 1984 for $12,000. This is a non covered security and the basis was

    not reported to the IRS. He sold the stock on March 23 of this year. He received

    $23,789 net of commissions on the sale.

    They itemized deductions last year, but did not receive any state refund.

    Timothy, Nicole, and Christina were on Medicare for the entire year.

    The Sterlings own their home, but have no mortgage at this time. They bring in their

    real estate tax bills which show an assessed value of $295,000 and total real estate

    taxes paid of $4,867.50. They had a well and septic system so pad no water or sewer


  • Timothy and Nicole Sterling Fall 2016


  • Timothy and Nicole Sterling Fall 2016


  • Timothy and Nicole Sterling Fall 2016


  • Timothy and Nicole Sterling Fall 2016


  • Timothy and Nicole Sterling Fall 2016


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  • Rachel E. Brown Fall 2016


  • Rachel E. Brown Fall 2016


  • Rachel E. Brown Fall 2016


    Interview Notes Rachel works part-time at a large store. She owns her house outright and pays the real

    estate taxes herself. She received a state tax refund last year but did not itemize her deductions. She is not sure whether she should itemize this year or not. She buys a $1 lottery ticket each week and had one winning ticket. She heard about the Senior Circuit Breaker credit and wonders if she is eligible.

    You confirm the entries on her Intake and Interview sheet (13614-C). She presents the following documents:

    Her Social Security payment (SSA-1099) Wages paid statement (W-2) Interest and Dividend statements (1099-INT / 1099-DIV) A Massachusetts state pension for her late husband (1099-R) State tax refund notice (1099-G) State Lottery winnings statement (W-2G) Medical expenses and a list of charitable contributions (with acknowledgements) Mass HC-1099 from Blue Cross/Blue Shield - EIN 06-0000091 showing coverage for

    entire year Real estate and car excise tax statements (marked “PAID” by the town clerk). Her

    single dwelling house is assessed at $ 263,200.

    Feb: $1,015.29 May: $1,015.29 Aug: $1,066.90 (includes $14.78 in late fees) Nov: $1,052.11 Car Excise $205.00

    Water and sewer bills for her home (marked “PAID” by the town clerk)

    Feb: $60.43 May: $59.78 Aug: $72.96 Nov: $81.16

  • Rachel E. Brown Fall 2016


  • Rachel E. Brown Fall 2016


  • Rachel E. Brown Fall 2016


  • Rachel E. Brown Fall 2016


  • Rachel E. Brown Fall 2016


    Deductible Expenses Medical Insurance

    Medicare (from SSA-1099) $1,969 Blue Cross/Blue Shield 903 MD Co-Pay 35 Rx Drugs 626 Glasses 175 Dental 250 Medical Miles Driven 150

    7 trips to MD at 20 miles RT 2 trips to Dentist at 5 miles RT

    Cash donations to church $520 American Cancer Society 50

  • Hannah Fleming Fall 2016


  • Hannah Fleming Fall 2016


  • Hannah Fleming Fall 2016


    Interview Notes - adapted from 2013 Pub 4491-W

    Hannah is a single mother of two children, Tara and Jerry. She showed you three social

    security cards with the following numbers:

    Hannah E Fleming 241-00-7210

    Tara Fleming 242-00-7210

    Jerry Fleming 243-00-7210

    Hannah was employed as an editor. Starting on July 1, 2009 she did some editing work

    from her home for Candid Publishing Co. who provided form 1099-MISC. She kept a

    record of her expenses: $1,625 for paper, $1,047.50 for printer cartridges, $1,250 for

    postage, $350 for a business phone line and long distance calls, and total mileage of

    234 for January and February for making deliveries. She had 10,000 other miles on

    her car. Hannah has one car which she bought in 2007 and began using for her work

    when she started working at home. She has a written record of her business mileage.

    She took a processing course in the evening at the local college to improve her skills.

    The tuition was $575. The Business Code for Schedule C-EZ or C is 541990. The

    address for the college was: One University Way, Your City, State and Zip Code.

    Hannah is divorced. The divorce decrees states that her ex-husband is to claim their

    son, Jerry, as a dependent on his return even though Hannah provides all the support

    for their children, Tara and Jerry. It also states that he is to pay her $300 per month

    alimony. Due to the loss of his job during the year, he only paid for 8 months.

    Hannah confirmed that the tax exempt interest she received from Northern Bank was

    exempt both federally and in Massachusetts.

    In January of the tax year, Hannah took an IRA distribution of $5,000 to pay off credit

    card debt.

    She did not itemize deductions last year.

    Hannah paid the Lucas Tiny Tots (EIN 24-2111111), located at 54 Unique Way, Your

    City, State and ZIP Code, for Tara and Jerry’s care while she was at work. She paid the

    day-care center $1,794.

    Hannah had a serious accident in June of the tax year and stopped working. She

    collected unemployment compensation, but was too young to retire. Hannah is now

    totally and permanently disabled.*

    Hannah’s education expenditures could be a business expense or a credit. Determine

    the most advantageous benefit for which she is qualified.

    Hannah let you know that a couple of years back she experience an identity theft issue.

    She brought with her a copy of the CP01A letter. Her letter shows that she was issued

    a PIN of 459871 for use when completing her return.

    Hannah rents an apartment; her monthly rent was $975. She and the children were

    covered by MassHealth for the year.

  • Hannah Fleming Fall 2016


    * The 1099-R $5400 distribution from One World Publishing should appear on 1040 line 7

    as wages. 2015 TaxSlayer provides a box on the 1099-R form for that purpose.

    However, TaxSlayer does not carry the $5400 over to MA Form 1 at all. For this return,

    include the $5400 as a taxable IRA distribution in the state section.

  • Hannah Fleming Fall 2016


  • Hannah Fleming Fall 2016


  • Hannah Fleming Fall 2016


  • Hannah Fleming Fall 2016


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  • Gail Hudson Fall 2016


  • Gail Hudson Fall 2016


  • Gail Hudson Fall 2016


    Interview notes – adapted from the NTTC workbook

    Learning objective: federal health care exemptions

    Gail has recently taken a job as a restaurant manager.

    Gail shows you her social security card with number 021-00-7210.

    Gail did not have any health insurance with her job and purchased insurance

    through the Marketplace in March of the current tax year. She gives you her 1095-

    A and MA Form 1099-HC showing an EIN of 12-3456789 and subscriber number of


    Gail rents her apartment for $1000 per month.

  • Gail Hudson Fall 2016


  • Gail Hudson Fall 2016


  • Gail Hudson Fall 2016


  • Albert and Lois Meadows Fall 2016


  • Albert and Lois Meadows Fall 2016


  • Albert and Lois Meadows Fall 2016


    Interview Notes – adapted from the NTTC workbook

    Learning objective: federal health care premium tax credits

    Albert was married previously to Eleanor Meadows 128-00-7210 and he pays her

    $100.00 a month alimony.

    Albert retired on December 1, 2013 after 30 years of service. He is under 65 and not

    disabled and does not yet receive social security. His pension was set up as a


    Albert is not eligible for health insurance coverage from his former employer and his

    wife Lois is not offered insurance at her place of work. Albert purchased health

    insurance through the Marketplace for himself, his wife, and his son several years ago

    and continued to do so this year. When Albert purchased health insurance for the

    family he estimated their household income at $2,000 per month. Their MA 1099-HC

    showed their subscriber numbers as 13579-1 (Albert) and 13579-2 (Lois).

    Lois attended Woodbury Community College several years ago where she took

    teaching certification classes that were necessary for her job. She shows you a 1098E

    with student loan interest.

    Lois and Albert have no mortgage and their real estate taxes are not high enough for

    them to itemize deductions.

    Albert and Lois show you the following social security cards:

    Albert 125-00-7210

    Lois 126-00-7210

    Warren 127-00-7210

  • Albert and Lois Meadows Fall 2016


  • Albert and Lois Meadows Fall 2016


  • Albert and Lois Meadows Fall 2016


  • Albert and Lois Meadows Fall 2016


  • Albert and Lois Meadows Fall 2016


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  • Jeremy and Janice Clark Fall 2016


  • Jeremy and Janice Clark Fall 2016


  • Jeremy and Janice Clark Fall 2016


    Interview Notes – adapted from the NTTC workbook

    Learning objective: calculate federal/state health care SRPs and/or affordability


    Jeremy and Janice were married two years ago.

    Jeremy says he had health insurance that meets MEC through his work for himself and

    his two sons Thomas and Sean. Janice did not have health insurance through her job

    and did not apply for any marketplace exemptions. Jeremy shows you his MA 1099-HC

    showing he has Blue Cross Blue Shield insurance, EIN 96-0000001, subscriber number


    They currently live with Jeremy’s widowed mother in her home and pay no rent or real

    estate taxes. They did not itemize last year and will not itemize this year either.

    Jeremy and Janice show you the following social security cards:

    Jeremy 051-00-7210

    Janice 052-00-7210

    Thomas 053-00-7210

    Sean 054-00-7210

    The calculated MA penalty is $708. For purposes of MA affordability, assume the

    Clarks live in region 2.

  • Jeremy and Janice Clark Fall 2016


  • Jeremy and Janice Clark Fall 2016


  • Jeremy and Janice Clark Fall 2016


  • Mark Austin Fall 2016


  • Mark Austin Fall 2016


  • Mark Austin Fall 2016


    Interview Notes – Austin

    This return was adapted from the 2013 Pub 4491-W.

    Social Security numbers provided:

    Mark Austin 231-00-7210

    Andrea Austin 232-00-7210

    Mark and Andrea Austin have been separated since 2006. They have not lived

    together since the separation, but their divorce is not finalized.

    Andrea has already filed her tax return and she itemized her deductions. Her SSN is


    Mark itemized deductions last year and received a refund from the MA department

    of revenue for $171. Mark itemized because Andrea did the same. His itemized

    deductions total $13,750 his taxable income was $8,549. The amount from last

    year’s Schedule A, line 5a (income taxes) was $423. His general sales tax was $350.

    Mark retired on 15 January 2005 and began taking annuity payments from the

    Railroad and now works part-time as a machinist. His annuity does not make

    provisions for a joint and survivor annuity.

    Mark contributed a total of $12,000 to his IRA while he was a MA resident and has

    taken $1350 since he turned 70 ½.

    His church contributions were $1,700 (per statement from the church).

    Mark purchased a new home on April 18. 2008 for $134,000. He received $7,500

    for his First Time Home Buyer Credit. The IRS sent him a CPO3A reminding him

    about the repayment of the annual $500 that needs to be included on his tax return.

    He repaid the minimum $500 on all tax returns since 2010 and does not wish to

    replay a larger amount this year.

    He paid $125 in car excise taxes this year.

    He did not qualify for the premium tax credit and had Medicare for minimum

    essential coverage all year.

  • Mark Austin Fall 2016


  • Mark Austin Fall 2016


  • Mark Austin Fall 2016


  • Sean and Stacey Graham Fall 2016


  • Sean and Stacey Graham Fall 2016


  • Sean and Stacey Graham Fall 2016


    Interview Notes – Graham

    This return was adapted from the 2013 Pub 4491-W and the MA additions by Peter


    Social Security cards provided:

    Sean Graham 111-00-7210 Stacey Graham 112-00-7210 Jeremy Graham 113-00-7210 Joshua Graham 114-00-7210 Gail Forsyth 115-00-7210

    Sean and Stacey Graham are married, have two children living with them, and want

    to file a joint return.

    Stacey’s mother, Gail Forsyth, lived with Sean and Stacey for the entire year. Gail’s entire income consists of $2,500 earned as a teacher’s aide, $360 in interest, and $4,200 in Social Security benefits. Sean and Stacey provided over half of Gail’s total support. She is a US Citizen and is widowed.

    Sean paid his ex-wife, Elaine, $250 per month, all year, in alimony. Elaine’s SSN is


    Jeremy started college and was in his first year. He has not been convicted on any

    felony crimes. His college issued a 1098-T for his education costs and scholarship. The Grahams wrote a check for $7,000 to his college.

    Gail paid $800 for a college course to improve her classroom management skills. She attended Campbell University, 15 Morgan Drive, Your town, state and zip code.

    Stacey paid $500 in interest on student loans for her Master of Science Degree in

    Elementary Education.

    Stacey went to Reno Nevada with friends and won $1,000 playing poker. She

    purchases MA lottery tickets, but had no winnings. She says she incurred $1,500 in gambling losses and says she has a written record to support those losses.

    Sean and Stacey own their own home. In 2015, their home was assessed at $251,000 and their water and sewer charges for the year were $343.17.

    Stacey does a lot of on-line shopping and wishes to take the Safe Harbor use tax on

    the MA return.

    Both Sean and Stacy are covered by Blue Cross Blue Shield of MA. The EIN is 96-0000061, subscriber numbers 987654321-1 and -2. Both children are covered

    under the same policy. Gail had Medicare A and B coverage all year.

    If Sean and Stacey are due a refunds, they want the refund deposited directly into their check account at the Local National Bank in their town. If they owe on either Federal or MA returns, they want the amount owed debited. The Local National Bank routing number and checking account number are: 322070239 and 642299, respectively.

    Sean and Stacey want to itemize their deductions this year. They provide the

    following information with supporting documentation. o Medical insurance premiums – paid by Stacy $3520

  • Sean and Stacey Graham Fall 2016


    o Hospital bills, unreimbursed $ 315

    o Doctor bills, unreimbursed $ 540 o Dentist bills, reimbursed by insurance $4200 o Antihistamine (over the counter) $ 190 o Gail’s prescription drugs (unreimbursed); Stacey paid $ 650 o Life insurance premiums $ 385 o Insulin (unreimbursed) $ 250 o Excise tax on vehicles $ 565 o Mortgage interest $5656 o Real estate taxes $1300

    o Credit card interest $ 900 o Church contributions paid by check $7550

    o Union dues $ 875 o Safety Deposit Box for investments $ 150

  • Sean and Stacey Graham Fall 2016


  • Sean and Stacey Graham Fall 2016


  • Sean and Stacey Graham Fall 2016


  • Sean and Stacey Graham Fall 2016