Question

Please do 13-15

Chapter 10: Learning Activity Scenario 1 - Wesley and Anne Wesley has been divorced from Anne for six months. They have not lived together for two years Prior to their final divorce decree, they filed joint returns. During the time they were separated, Anne won $25,000 from the lottery. Wesley was unaware that Anne had lottery winnings, which she failed to report. Wesley and Anne have received notification from the Internal Revenue Service that their return has been changed to reflect an increase in income and tax liability due to the lottery winnings. They have also been assessed with interest and penalties. Are both Wesley and Anne liable for any tax, interest, or penalty due? Should Wesley file a request for innocent spouse relief because he had no knowledge of the lottery winnings?

Answer 1

13. the answer is letter C.

Reason: the allocated wages on line 13 (column B) are only the ones earned by the injured spouse, who is, in our case penny.

14. the answer is letter A.

Reason: penny is paying a student loan that generates an amount of interest of 969, which is considered deductible and must be reported in order to adjust her income.

15. the answer is letter B.

Reason: the only federal tax income witheld that has to be enter on line 19 (column B) is the one regarding to the injured spouse, not the one on the joint return. in our case, the federal tax income witheld from penny was $5,266, that´s why letter B is the correct one.