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Unformatted text preview: 1 FORM 1040 – U.S. INDIVIDUAL INCOME TAX RETURN Assume that the taxpayers, George A. Warden (social security number 333-33-3330) and Mary S. Warden (social security number 444-44-4440) file a joint return. Both are 50 years old, have good eyesight, and live with their three children, Edward, John and Ruth, at 789 N. Code Drive, Chicago, Illinois 60699, (312) 679-9999. Mr. Warden wants to contribute $3 of his income tax to the Presidential Election Campaign Fund. Mrs. Warden elects not to contribute. The Wardens’ son, Edward, is a junior in college and he is 20 years old. He worked during the summer and earned $4,000. Their other son, John, is a 17-year old high school student. He earned $3,600 during the summer and worked part-time during the remainder of the year. Neither son had any additional income. Their daughter, Ruth, is eight years old and an elementary school student. She had no earned or unearned income during the year. In August, the Wardens paid $4,000 in tuition for their son, Edward, for the academic period that started in September. Edward’s social security number is 300-11- 0001, John’s social security number is 300-22-0002, and Ruth’s social security number is 300-33-0003. The Wardens claim Mrs. Warden’s mother, Grace D. Taylor, as a dependent under a multiple-support agreement. The total support of Mrs. Taylor is $6,000, received from the following three sources: (1) $3,000 from Mary Warden, (2) $1,000 from another daughter, Thelma Taylor, and (3) $2,000 in social security benefits. Mrs. Grace D. Taylor lived with the Wardens during all of 2009. Her social security number is 400-44-0004. Thelma Taylor provides the Warden’s with a written, signed statement, that she will not claim her mother as a dependent in 2009. Thelma Taylor lives at 1425 S. 62nd Street, Chicago, IL 60699, and her social security number is 500-55- 0005. The Wardens use Trish Ford, a professional tax preparer, to prepare their income tax return. Trish Ford’s PTIN is P98765432, and she works for E&amp;Z Tax Preparation (EIN #36-0987654), which is located in a nearby suburb of Middle America (telephone number 1-312-555-1040). However, the Warden’s do not authorize her to discuss their return with the IRS. INCOME AND EXPENSES GENERALLY During 2009, Mrs. Warden was employed as a salesperson by a publishing company. Her Form W-2 for 2009 reports the following: 2 Box 1. Wages, tips and other compensation $75,000 Box 2. Federal income tax withheld $4,950 Box 4. Social security tax withheld $4,650 Box 6. Medicare tax withheld $1,088 Box 17. State income tax $2,250 Mrs. Warden is not covered by her employer’s retirement plan. In addition, Mr. Warden is a self-employed individual who does not maintain a Keogh or a SEP plan. Mrs....
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Dubai during the Spring '11 term at Abu Dhabi University.
- Spring '11
- The Land