TAX RETURN No. 1 –Part II Spring, 2013
Henry and Helen Cummings are married and they live in Geneseo, N.Y. Henry is 37 and Helen is 34. They have two children, Robert and Mary. Robert is 6 years old and Mary is 4 years old, and neither has any income and both children qualify as their parent’s dependents. Helen is a licensed physical therapist. Henry is a manager for Baker Corporation, which is located in Rochester, New York. In February 2012, the Cummings provided you with the following information for preparing their 2012 federal income tax return:
1. The Cummings use the cash method of accounting and file their return on a calendar-year basis.
2. On May 15, 2012, Helen received $25,000 as a gift from her Aunt Mary.
3. The couple has a total amount of interest income for 2012 of $5000, of which $2,000 is interest from a savings account at ABC Bank, and $3,000 is ...view middle of the document...
8. The Cummings qualify for a “Child tax credit” in the amount of $1,600 (line 51, Form 1040, p. 2).
DUE DATE: PART I AND PART II are both subject to collection on Thursday, 2/21 (beginning of class)
REQUIREMENTS: If you worked in a group for Part I, you must work in that group for Part II. Each of the two parts, Part I and Part II, will need to have the pages for that respective part stapled together, with your name(s) printed at the top of the first page for Part I and at the top of the first page for Part II.
For Part II, you will complete the Cummings federal income tax return for 2012 MANUALLY (not using any software), and this will include p. 1 and p. 2 of their 1040, and Schedule B for Form 1040. You should download and print-out these 2012 forms from the TAX RETURN 1 Folder on MyC, and you’ll also find that the 2012 1040 instructions booklet is in the TAX RETURN 1 Folder on MyC. While you may fill the tax forms out in pencil (in fact, that’s preferable), nevertheless, the copy that you turn-in must be very neat and very legible.
GENERAL PROCEDURE: You should fill out the return by reviewing each line on p. 1 of 1040, and where it directs you to fill out a required Schedule for that line, then you need to go to that Schedule and fill the schedule out to get the required amount for the line on the 1040. You then go to the next line on the 1040.
Regarding FORM1040, p. 1 and p. 2—pay attention to detail and be SURE ALL information, such as Social Security numbers, is accurate. Note that the arrows at specific lines generally indicate that a total or subtotal must be placed on that line. Arrows at boxes generally mean that you either need to provide information (e.g., a number or amount) in that box, or that you might need to check the box as directed and per the taxpayer’s answer to a question. NOTE: if there’s NO arrow at a line and if no amount applies for a particular line, there is generally NO need to enter a zero unless the instructions specifically direct you to do so, e.g., the line is a total line or a subtotal.