Individual Tax Returns

Using the case data from the attached Case 1, complete Form 1040. Complete the attached template that has the respective tax forms and schedules required to complete the return. Complete all of the remaining parts of your respective business tax return for which there is information. Also, address any instructor feedback provided in the milestone submissions.

Some of the forms in the template for the Portfolio Project have only the front page (i.e. Form 1040 and Schedule D). You do not have to complete the second page for those forms, only the front page provided in the template. Schedule C is also not included in the template so if you are doing the option with that item, please just calculate the net income or loss and enter the amount on the appropriate line of Form 1040.

Portfolio Project Case 1


Comprehensive Tax Problem – Option 1


Taxpayer Information

Name:   John Washington

Address:   3450 Green St.

Miami, FL 54321

DOB:   5/5/1960

Filing Status:  Married

SSN:  434-20-2020

Occupation:  Engineer


Name:  Debra Washington

Address:  3450 Green St.

Miami, FL  54321

DOB:  7/7/1962

Filing Status:  Married

SSN:  411-21-4568

Occupation:  Teacher




Wages and Compensation


The following information is taken from John Washington’s 2017 Form W-2 Wage and Tax Statement:


Box 1 – Wages, tips, and other compensation 80,000
Box 2 – Federal Withholding 12,500
Box 17 – State Income Tax Withholding 2,000



The following information is taken from Debra Washington’s 2017 Form W-2 Wage and Tax Statement:


Box 1 – Wages, tips, and other compensation 42,000
Box 2 – Federal Withholding 3,500
Box 17 – State Income Tax Withholding 750




                Interest and Dividends


John had interest income from a savings account from Everest Bank of $500.00


Debra had dividend income of $550 from Blue Co. stock.



Capital Gains


John had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000


Rental Real Estate


The couple owns a rent house which he purchased on July 1, 2014.  The income and expenses of the rental real estate unit are as follows:


Rental income                                   $12,000

Property taxes                                  $1,500

Depreciation                                      $1,000

Repairs and Maintenance             $750

Insurance                                            $2,000


Other Transactions in 2017


  1. Debra had educator expenses in 2017 of $450.00
  2. John had gambling winnings of $1,000.
  3. John was the beneficiary of his mother’s life insurance policy.

His mother died in 2017 and he received $50,000 under this policy.

  1. Debra paid $700 in student loan interest.


Form 1040 Department of the Treasury Internal Revenue Service 2016
U.S. Individual Tax Form
OMB No.1545-0074 IRS Use Only–Do not write or staple in this space
For the year Jan.1–Dec. 31,2016, or any other tax year beginning ,2016, ,20 See Separate Instructions
Your first name and initial Last name Social Security Number
If a joint return, spouses first name and initial Last name Spouse Social Security Number
Home address( number and street). If you have a P.O. Box, see instructions Make Sure that the SSN(s) above
and on line 6c are correct .
City, town, or post office, state, and zip code. If you have a foreign address, also complete spaces below (see instructions). Presidential Election Campaign
Check here if you, or your spouse if filing jointly,
Foreign country name Foreign province/state/country Foreign postal code checking this box below will not change your tax
refund. you spouse
Filing Status 1. Single 4.Head of Household (with qualifying person.) (See instructions.) If
Check only one box 2.. married filing jointly the qualifying person is a child but not your dependent, enter this
3. Married filing separately. Enter spouse’s SSN above child’s name here
and full name here. 5. Qualifying Window(er) with dependent child
Exemptions 6a  Yourself. If someone can claim you as a dependent, do not check box 6a ] Boxes checked
b spouse ] on 6a and 6b
If more than four c. Dependents
dependents, see (1) First name Last name (2) dependents (3) dependents (4) check if child under age 17 No. of children
instructions and social security number relationship to you qualifying for tax credit see on 6c who:
check here instructions. lived with you
did not live with you
due to divorce or
(see instructions)
Dependents on
6c not entered
d. Total number of Exemptions Claimed Add numbers on lines above
Income 7 Wages, salaries, tips, etc. Attach Forms (W-2) 7
8a Taxable interest. Attach Schedule B if required 8a
Attach Form(s) b Tax-exempt interest. Do not  include on line 8a 8b
W-2 here. Also 9a Ordinary dividends. Attach Schedule B if required 9a
attach Forms(s) b Qualified dividends 9b
W-2 and 1099-R 10 Taxable refunds, credits, or offsets state or local income taxes 10
if tax was withheld. 11 Alimony received 11
12 Business income or (loss). Attach Schedule C or C-EZ 12
If you did not 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here 13
get a W-2, 14 other gains or (losses). Attach Form 4797 14
see instructions 15a IRA distributions 15a b Taxable amount 15b
16a Pensions and annuities 16a b Taxable amount 16b
17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17
18 Farm income or (loss). Attach Schedule F 18
19 Unemployment compensation 19
20a Social security benefits 20a b Taxable amount 20b
21 other income. List type and amount 21
22 combine the amounts in the far right column  for lines 7 through 21. This is your total income This is your total income. 22
Adjusted 23 Educator expenses 23
Gross 24 Certain business expenses of reservists, performing artists, and fee-basis government. Attach Form 2106 or 2106-EZ 24
25 Health-savings account deduction. Attach Form 8889 25
26 Moving Expenses. Attach Form 3903 26
27 Deductible part of self-employment tax. Attach Schedule SE 27
28 Self-employed SEP, SIMPLE, and qualified plans 28
29 Self-employed health  insurance deduction 29
30 Penalty on early withdrawal of savings 30
31a Alimony paid b. Recipient’s SSN 31a
32 IRA deduction 32
33 Student loan interest deduction 33
34 Tuition and fees. Attach Form 8917 34
35 Domestic production activities deduction. Attach Form 8903 35
36 Add lines 23 through 35 36
37 Subtract line 36 from line 22. This is your adjusted gross income. 37





Last Updated on October 3, 2018 by EssayPro