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Noah and Joan Arc's Tax Return 1 answer below » Noah and Joan Arc live with their family at 4342 Josie Jo, Santee, CA 92071. Noah's SSN is###-##-####Joan's is XXXXXXXXXX Both are in their mid-30s and...

1 answer below »
Noah and Joan Arc's Tax Return 1 answer below »
Noah and Joan Arc live with their family at 4342 Josie Jo, Santee, CA 92071.
Noah's SSN is###-##-####Joan's is XXXXXXXXXX
Both are in their mid-30s and enjoy good health and eyesight.
Noah owns and operates a pet store and Joan is a fire-firefighter for the city.
1. The Arcs have 2 children, a son named Billie Bob (SSN XXXXXXXXXX), who is 7 years old. A daughter name Mary Sue (SSN###-##-####, who is 4 years old.
The Arcs paid $2,800 to the roundup Day Care Center to take care of Mary Sue while they worked. Because Joan is a firefighter, she was home in the afternoon to care for Billie Bob after

View complete question »Noah and Joan Arc live with their family at 4342 Josie Jo, Santee, CA 92071.
Noah's SSN is###-##-####Joan's is XXXXXXXXXX
Both are in their mid-30s and enjoy good health and eyesight.
Noah owns and operates a pet store and Joan is a fire-firefighter for the city.
1. The Arcs have 2 children, a son named Billie Bob (SSN XXXXXXXXXX), who is 7 years old. A daughter name Mary Sue (SSN###-##-####, who is 4 years old.
The Arcs paid $2,800 to the roundup Day Care Center to take care of Mary Sue while they worked. Because Joan is a firefighter, she was home in the afternoon to care for Billie Bob after school.
2. For the current year, Joan's W-2 from the city fire department showed the following wages:
Wages
$ 27,000
Federal Income tax withheld
$ 5,050
State Income tax withheld
$ 1,200
FICA tax withheld
$ 2,066
Noah made some estimated federal income tax payments of $12,000 and estimated state income tax payments of $1,000 during the year.
3. Noah's pet store is located at***** Santee, Ca, XXXXXXXXXXThe name of the store is "The Arc," and its taxpayer ID number is ***** The beginning inventories and ending inventories are both $10,000. The revenue and expenses for the year are as follows:
Sales Revenue
$ 144,000
Expenses:
Cost of Sales
$ 62,000
Insurance
$ 750
Accounting Fees
$ 1,800
Wages
$ 25,000
Payroll Taxes
$ 2,250
Utilities
$ 2,700
Rental expense
$ 7,200
Total Expenses
$ (101,700)
Net Income
$ 42,300
4. Noah and Joan paid the following amounts during the year (all by check):
Political contributions
$250
Church donations (for which a written acknowledgement was received)
$2,300
Real estate taxes on their home
$1,200
Mortgage interest for purchase of home
$ 12,000
Tax return preparation fees
$ 350
Credit card interest
$220
Automobile insurance premium
$600
Uniforms for Joan
$125
5. Noah likes to invest in the stock market. During the year he sold the following securities, none of which were qualified small business companies:
Stock
Blue Co.
02/11/03 (Acquired)
08/15/10 (Sold)
4,500 (Sale Price)
2,300 (Cost Price)
Yellow Co.
01/31/10 (Acquired)
06/05/10 (Sold)
6,000 (Sale price)
5,000 (Cost price)
Red Co.
10/02/04 (Acquired)
10/07/10 (Sold)
12,000 (Sale price)
1,600 (Cost price)
The expenses of sale are included in the cost basis. Noah has a long-term capital loss carryover from last year of $2,300.
6. During the year, Noah and Joan received the following qualifying dividends:
Exxon
$ 320
Coca-cola
$ 268
Texas Utilities
$ 220
7. Noah and Joan own rental property located atXXXXX, San Diego, CA 92115.
The revenue and expenses for the year are as follows:
Rent Income
$ 14,000
Insurance
$ 550
Interest Expense
$ 7,000
Property taxes
$ 1,000
Miscellaneous Expenses
$ 600
Depreciation (The house was acquired in 1990)
$ 3,000
Required:
Although Noah and Joan do not believe their tax return will be unduly complicated, they do realize their limitations and come to you for assistance. You are to prepare their federal income tax return in good form, signing the return as the preparer. Do not complete a California state income tax return. Assume and other information (addresses, etc.) that you may need. The following forms and schedules are required, 2014 edition:
Form 1040, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E, Schedule SE, Form 2441, Form 8949, Qualified Dividends and Capital Gain Tax Worksheet.
Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021
118 Votes
2014 Form 1040
Fo
m 1040 Department of the Treasury—Internal Revenue Service (99)U.S. Individual Income Tax Return 2014 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
For the year Jan. 1–Dec. 31, 2014, or other tax year beginning , 2014, ending , 20 See separate instructions.
Your first name and initial Last name Your social security number
If a joint return, spouse’s first name and initial Last name Spouse’s social security number
▲ Make sure the SSN(s) above
and on line 6c are co
ect.
Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Foreign country name Foreign province/state/county Foreign postal code
Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
a box below will not change your tax or
efund. You Spouse
Filing Status
Check only one
ox.
1 Single
2 Ma
ied filing jointly (even if only one had income)
3 Ma
ied filing separately. Enter spouse’s SSN above
and full name here. ▶
4 Head of household (with qualifying person). (See instructions.) If
the qualifying person is a child but not your dependent, enter this
child’s name here. ▶
5 Qualifying widow(er) with dependent child
Exemptions 6a Yourself. If someone can claim you as a dependent, do not check box 6a . . . . .
Spouse . . . . . . . . . . . . . . . . . . . . . . . . }
c Dependents:
(1) First name Last name
(2) Dependent’s
social security number
(3) Dependent’s
elationship to you
(4) ✓ if child under age 17
qualifying for child tax credit
(see instructions)
If more than four
dependents, see
instructions and
check here ▶
d Total number of exemptions claimed . . . . . . . . . . . . . . . . .
Boxes checked
on 6a and 6
No. of children
on 6c who:
• lived with you
• did not live with
you due to divorce
or separation
(see instructions)
Dependents on 6c
not entered above
Add numbers on
lines above ▶
Income
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
If you did not
get a W-2,
see instructions.
7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . 7
8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . 8a
Tax-exempt interest. Do not include on line 8a . . . 8b
9 a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . 9a
Qualified dividends . . . . . . . . . . . 9b
10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 10
11 Alimony received . . . . . . . . . . . . . . . . . . . . . 11
12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . 12
13 Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶ 13
14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 14
15 a IRA distributions . 15a b Taxable amount . . . 15b
16 a Pensions and annuities 16a b Taxable amount . . . 16b
17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17
18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 18
19 Unemployment compensation . . . . . . . . . . . . . . . . . 19
20 a Social security benefits 20a b Taxable amount . . . 20b
21 Other income. List type and amount 21
22 Combine the amounts in the far right column for lines 7 through 21. This is your total income ▶ 22
Adjusted
Gross
Income
23 Educator expenses . . . . . . . . . . . 23
24 Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ 24
25 Health savings account deduction. Attach Form 8889 . 25
26 Moving expenses. Attach Form 3903 . . . . . . 26
27 Deductible part of self-employment tax. Attach Schedule SE . 27
28 Self-employed SEP, SIMPLE, and qualified plans . . 28
29 Self-employed health insurance deduction . . . . 29
30 Penalty on early withdrawal of savings . . . . . . 30
31 a Alimony paid b Recipient’s SSN ▶ 31a
32 IRA deduction . . . . . . . . . . . . . 32
33 Student loan interest deduction . . . . . . . . 33
34 Tuition and fees. Attach Form 8917 . . . . . . . 34
35 Domestic production activities deduction. Attach Form 8903 35
36 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . 36
37 Subtract line 36 from line 22. This is your adjusted gross income . . . . . ▶ 37
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2014)
Form 1040 (2014) Page 2
Tax and
Credits
38 Amount from line 37 (adjusted gross income) . . . . . . . . . . . . . . 38
39a Check
if:
{ You were born before January 2, 1950, Blind.
Spouse was born before January 2, 1950, Blind.
} Total boxes
checked ▶ 39a
If your spouse itemizes on a separate return or you were a dual-status alien, check here ▶ 39b
Standard
Deduction
for—
• People who
check any
ox on line
39a or 39b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Ma
ied filing
separately,
$6,200
Ma
ied filing
jointly or
Qualifying
widow(er),
$12,400
Head of
household,
$9,100
40 Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . 40
41 Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . 41
42 Exemptions. If line 38 is $152,525 or less, multiply $3,950 by the number on line 6d. Otherwise, see instructions 42
43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . 43
44 Tax (see instructions). Check if any from: a Form(s) 8814 b Form 4972 c 44
45 Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . 45
46 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . 46
47 Add lines 44, 45, and 46 . . . . . . . . . . . . . . . . . . . ▶ 47
48 Foreign tax credit. Attach Form 1116 if required . . . . 48
49 Credit for child and dependent care expenses. Attach Form 2441 49
50 Education credits from Form 8863, line 19 . . . . . 50
51 Retirement savings contributions credit. Attach Form 8880 51
52 Child tax credit. Attach Schedule 8812, if required . . . 52
53 Residential energy...
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