Question

Basic Scenario 7: Evie Adams Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes

• Evie is single and has two young girls, Poppy and Lily, who lived with her all year.

• Evie paid more than half of the support for her daughters and all the cost of keeping up the home. • Evie was unemployed for two months (March and April). She cashed in her 401(k) and used the money to pay for living expenses. • Evie is paying off a student loan that she took out when she attended college for her bachelor's degree.

• She took some courses this year at Southwest College to improve her job skills as an educator. She did not receive a Form 1098-T for 2018.

• Evie was an elementary school teacher from May to December and paid $550 out of pocket for classroom supplies.

• She went to the local casino and won some money in 2019. During the interview she mentions that she had gambling losses of $700.

20. What is the total amount of adjustments on Evie's tax return?

a. $250

b. $600

c. $850

d. $1,550 21.

What is the lifetime learning education credit amount on Evie's tax return? $________.

22. What is the total federal income tax withheld on Evie's tax return? $_______.

23. What is the amount of gambling winnings reported on her 2019 return?

a. $0

b. $1,300

c. $2,000

d. $3,200

24. Evie is eligible to claim which of the following credits on her 2019 tax return?

a. Child and dependent care credit

b. Child tax credit

c. Earned income tax credit d. All of the above

25. Evie must pay an additional tax on the early distribution from her 401(k) of:

a. 0%

b. 5%

c. 10%

d. 15%

Answer 1

answers

20.

the total amount of adjustments on Evie's tax return is upto $250 because Eligible educators can deduct up to $250 of qualified expenses paid during the tax year. If the taxpayer and spouse are both eligible educators, they can deduct up to $500, but neither can deduct more than their own expenses up to $250. The deduction amount is indexed for inflation, so future maximum deduction amounts may be higher.

21.

The Lifetime learning education credit amount on Evie's tax return is $2000, (i.e.The Lifetime Learning tax credit is equal to 20 percent of the first $10,000 in tuition expenses you pay per year, up to a maximum credit of $2,000. You must have at least $10,000 in qualified expenses in a given year to claim the whole $2,000 credit.

22.

The total federal income tax withheld on Evie's tax return is upto $2000 per year.

23.

Casinos, race tracks, state lotteries, bingo halls, and other gambling establishments located in the United States are required to tell the IRS if you win more than a specified dollar amount by filing a tax form called Form W2-G with the IRS. You’re given a copy of the form as well. When a W2-G must be filed depends on the type of game you play and how much you win. For example, the casino must file a W2-G if you win $1,200 or more playing slots or bingo; but only if you win $1,500 or more at keno. If this income is not listed on your tax return, you’ll likely hear from the IRS.

she has to maintain records of winnings and losses.

24.

Evie is eligible to claim Child and dependent care credit.

25.

Most retirement plan distributions are subject to income tax and may be subject to an additional 10% tax.so Evie has to pay additionally 10%.

so this is Evie has elizible those deductions

Hope all you undrestand my words and useful thanks regards