Practice Return 1 - Drake Software · PDF fileDrake Tax 2017 Practice Return 1 ... There is no...
Transcript of Practice Return 1 - Drake Software · PDF fileDrake Tax 2017 Practice Return 1 ... There is no...
Drake Tax 2017 Practice Return 1 ©2017 Drake Software
Practice Return 1 Drake Tax 2017
In this scenario, you will practice entering the following:
Form W‐2 Income
Health Care Coverage
Earned Income Credit and Child Tax Credit and Due Diligence
Child‐Care Expenses
SCENARIO INFORMATION
Ponderosa Pine lives in Atlanta, GA with her 6 year old son,
Spruce. Ponderosa works full‐time as a botanist at the University
of Trees.
Ponderosa and her son are both U.S. citizens and cannot be a
qualifying child or dependent on anyone else’s federal tax return.
She provided proof of maintenance of the household, including
utility bills and rent receipts (attached). There is evidence that
Ponderosa paid more than 50% of the cost of keeping up the
home in which she and her son lived. She lived in the U.S. for the
entire year.
Ponderosa provided you with a copy of her driver’s license. The
number is 123456789 issued in VA on 01/01/2017. Her license
expires on 01/01/2020.
TAXPAYER INFORMATION
NAME Ponderosa Pine SSN 400‐00‐6001 DATE OF BIRTH 11‐08‐1973
EMAIL: [email protected] OCCUPATION: Botanist
Address: 100 Evergreen Lane, Atlanta, GA 30302
Phone: 828‐524‐8020
Instructions
This practice return will help you become
familiar with return preparation in Drake Tax.
Use the scenario information and the attached
source documents to complete the return. After
the return is complete, compare your results
with the solutions provided online.
Go to Support.DrakeSoftware.com for solutions
and more practice returns. After logging in
access Training Tools > Practice Returns.
To agree with provided solutions:
Suppress Forms 1040A and 1040EZ
Suppress state returns by entering “0” in
the Resident state field on Screen 1
Install all program updates
Correct all EF diagnostic messages
Attached Source Documents
Form W‐2
Child Care Statement
Utility Bills and Rent Receipts
Form 1095‐B
Drake Tax 2017 Practice Return 1 ©2017 Drake Software
DEPENDENT INFORMATION
The dependent:
is unmarried
lived with the taxpayers in the U.S. for the entire year
cannot be claimed by anyone other than the taxpayer
Ponderosa paid for child care for her son to be enrolled in an after‐school program while she worked. The child care
statement is attached.
There is no active Form 8332, Release/Revocation of Claim to Exemption for Child by Custodial Parent, or similar
statement in place.
INCOME
During 2017, Ponderosa was employed full‐time as a botanist. She received Form W‐2 (attached) from her employer in
January 2018. She does not have any interest in or authority over any foreign accounts.
Ponderosa does not receive any child support or public assistance.
HEALTH CARE INFORMATION
Ponderosa and her son were covered by minimum essential coverage for the entire year by an employer’s plan.
DUE DILIGENCE
For the purposes of this practice return, assume the following:
the return was completed based on information provided to you by the taxpayer
you interviewed the taxpayer, asked questions, and documented the taxpayer’s responses
you reviewed adequate information to determine the taxpayer is eligible to claim any credits present on the
return
all information provided appears to be correct, complete, and consistent
reasonable inquiries were made to determine correct and complete information
all inquiries were documented
all record retention requirements are met
the taxpayer provided documentation to substantiate eligibility for and the amount of the credits present
any credits present on the return have never been disallowed or reduced in a previous year
you explained the rules for EIC for taxpayers with qualifying children
documentation is provided for residency of child (attached child care statement)
the taxpayer’s income appears to be sufficient to support the taxpayer and qualifying child
DEPENDENT 1 ‐ SON
NAME Spruce Pine SSN 400‐00‐0042 DATE OF BIRTH 05‐01‐2011
MTHS IN HOME 12 CHILD CARE $3600
Form 1095-B2017Department of the Treasury
Internal Revenue Service
Health Coverage▶ Do not attach to your tax return. Keep for your records.
▶ Go to www.irs.gov/Form1095B for instructions and the latest information.
OMB No. 1545-2252
560116
VOID
CORRECTED
Part I Responsible Individual1 Name of responsible individual 2 Social security number (SSN) or other TIN 3 Date of birth (if SSN or other TIN is not available)
4 Street address (including apartment no.) 5 City or town 6 State or province 7 Country and ZIP or foreign postal code
8 Enter letter identifying Origin of the Health Coverage (see instructions for codes): . . . ▶
9 Reserved
Part II Information About Certain Employer-Sponsored Coverage (see instructions)10 Employer name 11 Employer identification number (EIN)
12 Street address (including room or suite no.) 13 City or town 14 State or province 15 Country and ZIP or foreign postal code
Part III Issuer or Other Coverage Provider (see instructions)16 Name 17 Employer identification number (EIN) 18 Contact telephone number
19 Street address (including room or suite no.) 20 City or town 21 State or province 22 Country and ZIP or foreign postal code
Part IV Covered Individuals (Enter the information for each covered individual.)
(a) Name of covered individual(s) (b) SSN or other TIN (c) DOB (if SSN or other TIN is not available)
(d) Covered all 12 months
(e) Months of coverage
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
23
24
25
26
27
28
For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 60704B Form 1095-B (2017)
Ponderosa Pine 400-00-6001 11-08-1973
100 Evergreen Ln Atlanta Georgia 30302
University of Trees 10-0000000
200 Spruce Way Atlanta Georgia 30325
Big Insurance Co 12-3333333
1234 Medical Ave Atlanta Georgia 30325
Ponderosa Pine 400-00-6001 11-08-1973
Spruce Pine 400-00-0042 05-01-2011
KIDSZONE 98 Learning Ave Atlanta 30326 EIN:56-1234567
KIDSZONE 91 Learning Ave Atlanta GA 30326
2017 Statement
Date: 1/18/2018 Account 05152010
Ponderosa Pine 100 Evergreen Ln Atlanta GA 30302
D a t e D e s c r i p t i o n N a m e A m o u n t
01/01/2017 After-School Program Tuition Spruce Pine $300.00 02/01/2017 After-School Program Tuition Spruce Pine $300.00 03/01/2017 After-School Program Tuition Spruce Pine $300.00 04/01/2017 After-School Program Tuition Spruce Pine $300.00 05/01/2017 After-School Program Tuition Spruce Pine $300.00 06/01/2017 After-School Program Tuition Spruce Pine $300.00 07/01/2017 After-School Program Tuition Spruce Pine $300.00 08/01/2017 After-School Program Tuition Spruce Pine $300.00 09/01/2017 After-School Program Tuition Spruce Pine $300.00 10/01/2017 After-School Program Tuition Spruce Pine $300.00 11/01/2017 After-School Program Tuition Spruce Pine $300.00 12/01/2017 After-School Program Tuition Spruce Pine $300.00
Total $3600.00
LMN POWER
100 Light Ln Marietta GA 30060 | p. 828.524.8020 |
LMN POWER December 15, 2017
INVOICE #1234
Bill To Details of Electric Charges
Customer Ponderosa Pine
Customer ID# 5454545
Address 100 Evergreen Ln Atlanta GA 30302
Phone 828-524-8020
Usage (kWh) 793 Current Reading 092580
Previous Reading 091787
Payment Due January 15, 2018
Period of Service
11/1/2017 to 12/1/2017
Electric Summary
Balance from last bill $178.27
Payment Dec 1 -$178.27
New Charges $201.54
Total Amount Due $201.54
Total Amount Due by January 15, 2017 $201.54
Thank you for your business!