Question

2019 CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, 1 Gross distribution OMB No. 1545-0119 Distributions From country, ZIP or foreign postal code, and phone no. Pensions, Annuities, $ PINE CORPORATION Retirement or 22,532.00 Profit-Sharing Plans, 1809 GULF DRIVE 2a Taxable amount IRAs, Insurance YOUR CITY, STATE ZIP Contracts, etc. Form 1099-R 2b Taxable amount Total Copy B not determined X distribution Report this PAYER'S TIN RECIPIENT'S TIN 3 Capital gain (included 4 Federal income tax income on your in box 2a) withheld federal tax return. If this 40-100XXXX 317-00-XXXX form shows 2,253.00 federal income RECIPIENT'S name 5 Employee contributions 6 Net unrealized tax withheld in Designated Roth appreciation in contributions or employer's securities box 4, attach MARK MATTHEWS insurance premiums this copy to your return. Street address (including apt. no.) 7 Distribution IRA 8 Other SEPI code(s) ISIMPLE 742 RED ROOSTER This information is D $ being fumished to City or town, state or province, country, and ZIP or foreign postal code 9a Your percentage of total b Total employee contrbutions the IRS YOUR CITY, STATE ZIP distribution %$ 14,500.00 10 Amount allocable to IRR 1 1 1st year of FATCA filing 12 State tax withheld 13 State/Payer's state no. 14 State distribution within 5 years desig. Roth contrib. requirement 9 Account number (see instructions) 15 Local tax withheld 16 Name of locality 17 Local distribution Date of payment Form 1099-R www.lrs.gov/Form1099R Department of the Treasury - Internal Revenue Service
NOTE: TO VIEW COMPLETE QUESTION/PROBLEM, PLEASE GOOGLE "IRS 6744" AND READ THROUGH PAGE 75 TO 84 OF THE PDF. THANK YOU VERY MUCH!NOTE: TO VIEW COMPLETE QUESTION/PROBLEM, PLEASE GOOGLE "IRS 6744" AND READ THROUGH PAGE 75 TO 84 OF THE PDF. THANK YOU VERY MUCH!

22 . What is the amount of taxable interest reported on the Matthews’ Form 1040?

a . $50 b . $250 c . $300 d . $350

24. What is the taxable portion of Mark's pension from Pine Corporation using the simplified method?

$______

25. Is Mark's Social Security income taxable?

A. Yes, a portion of the Social Security income is taxable.

B. Yes, all of the Social Security income is taxable.

C. No, because their total income is less than $32,000.

D. No, Social Security benefits are never taxable.

26. The Matthews want to split their refund between savings and checking accounts. How is this accomplished, if possible?

A. Complete Form 8888, Allocation of Refund (Including Savings Bond Purchases).

B. Splitting a refund is not possible.

C. This can only be accomplished if filing a paper return.

D. The Donnellys do not have an overpayment on their return.

Advanced Scenario 7: Mark and Barbara Matthews Directions

Using the tax software, complete the tax return, including Form 1040 and all appropri- ate 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

• Mark and Barbara are married and want to file a joint return.

• Mark retired and began receiving retirement income on March 1, 2017 . No distribu- tions were received prior to his retirement . Mark selected a joint survivor annuity for these payments . The plan cost at annuity start date was $14,500 . Mark has already recovered $1,029 of his cost in the plan .

• The Matthews received a $125 state income tax refund from their 2018 state tax return . The Matthews do not have enough deductions to itemize for 2019 and they have never itemized deductions .

• Mark and Barbara stated if they are entitled to a refund, they want half of it depos- ited into their checking account and the other half deposited into their savings account . The checking account number is 123456789 and the savings account number is 987654321 . Both accounts are from Adelphi Bank and Trust .

NOTE: FOR COMPLETE QUESTION/PROBLEM, PLEASE GOOGLE "IRS 6744" AND READ THROUGH PAGE 75 TO 84 OF THE PDF. THANK YOU VERY MUCH.

I would greatly appreciate if anyone could answer question 22. If possible, please also answer question 24. If you can't do that much questions, skip Question 25 and 26. But if you can, I would even appreciate it more. I would definitely write you a nice comment and give you an upvote if you could answer at least one question of this problem.

Answer 1

22. Answer is b. $250
Taxable Interest = Interest Income - Bond premium
= $300 - $50 = $250