preparing a tax return

1040 U.S. Individual Income Tax Return

For this assignment, you will prepare a 1040 U.S. Individual Income Tax Return.  The 1040 form is below as well as in the Files section along with a 1040 Individual Tax Instruction guide.  The W2 for each client is in the Files tab in the 1040 Documents folder.

  

   

Please see the information below on your client:

Taxpayer’s Citizenship	Citizen
Type of Return	Joint
Disability	No
Taxpayer #1 Personal Information	Lester L Walkman 123 Tax Lane New Orleans, LA 70345 Social Security Number: 432-XX-5555 Date of Birth: 4/7/1961
Taxpayer Income	Employer: Equilon  (Go to Files to find W2 information) Other Income: Fidelity Investments Ordinary Dividends: $955.00 – these dividends are considered qualified dividends.Chase Bank Interest – $10
Taxpayer #2 Personal Information	Lana W Walkman 123 Tax Lane New Orleans, LA 70345 Social Security Number: 431-XX-3344 Birth Date: 2/3/1961
Taxpayer #2 Income	City of New Orleans (Go to Files to find W2 information)
Dependent	Jan Walkman Daughter 17 years old Social Security Number: 567-XX-8999 Child lived with family 12 months of 2020
Deductions	Total Itemized Deductions: $18,200 Standard Deduction: $24,400

 

Consider the following when preparing this tax return:

• Will itemized deduction or standard deduction be more beneficial for taxpayer to deduct?
• Taxpayers do not qualify for the Child Tax Credit because the dependent must be under 17. However, they qualify for the “Other Dependent Credit”.
• What is the address the tax return must be mailed based on the state of the taxpayers’ residence?