Question

***I do not need any of the figures, calculations or forums done, I am in need of help for the written part of Week 7: Final Submission. I am very weak when it comes to writing and could use some guidance. Below I will list the 3 situations for your help. Thanks! Week 7: Final Submission Recommendations This week you will resubmit the updated tax preparation forms based on your manager’s (instructor’s) feedback. Along with this documentation, you will submit your responses to the following questions to your manager (instructor) in a Word document. Structure your responses to the following questions in the Word document by each client. 1. Explain your professional responsibilities in tax return preparation for gross income, adjusted gross income, and taxable income. 2. Describe how you have demonstrated ethical behavior in this tax preparation process for these three clients. 3. Identify recommendations you would like to provide to the clients for additional deductions that they would have benefitted from (such as charitable donations). 4. Justify the use of the various tax forms for each of the three clients. Required: Your submission should be formatted as follows: • Word Document – at least two pages • Double space 12-point font (Arial or Times New Roman) • Cover Page • Heading and section for each client • Reference Page that list at least two critically evaluated resources • In-text citations

Week 3: Comprehensive Case Study 1 David and Darlene Jasper have one child, Sam, who is 6 years old (birthdate July 1, 2011). The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David’s Social Security number is 577-11-3311, Darlene’s is 477-98-4731, and Sam’s is 589-22-1142. David and Darlene’s earning and withholdings for 2017 are: David: Earnings from Apple Company (office manager) $26,250 Federal income tax withheld 2,800 State income tax withheld 1,050 Darlene: Earnings from Rose Company (perfume tester) $25,175 Federal income tax withheld 2,650 State income tax withheld 916 Their other income includes interest from Pine Tree Savings and Loan of $1,835. Other information and expenditures for 2017 are as follows: Interest: On home acquisition mortgage $11,175 Credit card 925 Taxes: Property taxes on personal residence 1,300 State income taxes paid in 2016 (for 2015) 315 Contribution (with written acknowledgement) to church 1,020 Medical insurance 675 Medical and dental expenses 5,785 Income tax return preparation fee paid in 2017 200 Payment of union dues 225 Actual general state sales tax for 2017 1,016 David and Darlene received the following letter from Sam’s daycare provider: KIDDIECARE INC. 10250 Santa Monica Blvd. Los Angeles, CA 90067 EIN: 13-3345678 January 14, 2018 David and Darlene Jasper 4639 Honeysuckle Lane Los Angeles, CA 90248 Dear David and Darlene, Thank you for your patronage of our day care center with your child, Sam Jasper in 2016. This statement serves as a record of the cost of daycare services we provided during calendar year 2016. Child Amount Dates of Service Sam Jasper $3,500 1/1/2017 – 8/25/2017 Sincerely, /s/ Marcia Clarke Marcia Clarke Director, KiddieCare Inc. In 2017 David lost his job. David paid for one month of insurance out-of-pocket and then the family went without insurance for September through December 2017. They are not eligible for any exemptions from health care coverage. Required: Complete the Jaspers’ federal tax return for 2017. Use Form 1040, Schedule A, Schedule B, and Form 2441, which can be found on the IRS website. Make realistic assumptions about any missing date. You will also need to use the Shared Responsibility Payment worksheet and the Flat Dollar Amount worksheet found in Chapter 6 of your text. Submit the appropriate tax forms for your manager’s (instructor’s) review and feedback.

Week 5: Comprehensive Case Study 2 Steve Jackson (birthdate December 13, 1965) is a single taxpayer living at 3215 Pacific Dr., Del Mar, CA 92014. His Social Security number is 465-88-9415. In 2017, Steve’s earning and income tax withholding as the manager of a local hotel are: Earnings from the Ocean View Hotel $121,500 Federal income tax withheld 18,500 State Income tax withheld 9,300 Steve’s other income includes interest from General Electric bonds of $2,550 and interest on a savings account at Wells Fargo Bank of $3,215. Also, Steve received tax-exempt interest of $29,440 on private activity bonds that is subject to alternative minimum tax. Steve had full medical coverage for the entire tax year. During the year, Steve paid the following amounts (all of which can be substantiated): Home mortgage interest $31,575 Credit card interest 1,760 Auto insurance 900 State income taxes paid in 2016 (for 2014 audit) 12,600 Property taxes on personal residence 6,200 Kaiser HMO premiums 4,800 Other medical expenses 790 CPA fees paid to handle 2014 state audit 7,000 Charitable contributions Girl Scouts 800 San Diego State University (contribution) 10,000 Italian Red Cross 250 Required: Complete Steve’s federal tax return for 2017. Use Form 1040, Schedule A, Schedule B, and Form 6251, which can be found on the IRS website. Make realistic assumptions about any missing data. Submit the appropriate tax forms for your manager’s (instructor’s) review and feedback.

Week 6: Comprehensive Case Study 3 Richard McCarthy is a single taxpayer living at 169 Trendie Street, Apartment 6B, La Jolla, CA 92037. His Social Security number is 865-68-9635 and his birthdate is September 18, 1972. In 2017, Richard was employed as a delivery person for a local pizza restaurant. Richard’s W-2 showed the following: Earnings from La Tasse Pizzaria $ 23,220 Federal income tax withheld 1,300 State income tax withheld 400.56 Richard’s only other source of income during the year was a $10,000 prize he won appearing on a game show. The game show withheld $2,800 of federal income taxes before paying Richard. He has no other adjustments to income or deductible expenses. Unfortunately, Richard’s employer did not provide health care to its employees but Richard signed up for coverage through his state’s health care exchange. The exchange sent him a form 1095-A. His monthly enrollment premiums were $300 for a total of $3,600 for the year 2017. His monthly second lowest cost silver plan (SLCSP) Premium was $335 per month for a total of $4,020 for the year 2017. And his monthly advance payment of premium tax credit (PTC) was $143 per month for a total of $1,716 for the year 2017.

Answer 1

1. Explain your professional responsibilities in tax return preparation for gross income, adjusted gross income, and taxable income.

Obtain all information on taxable income and all expenses.

Do appropriate adjustment to reduce client' taxes.

Provide sufficient information and advice to the taxpayer to complete the tax form.

Verify the data correct any errors committed by the taxpayer.

Refer tax laws to ensure more accurate presentation and submission of tax forms.