2010 tax class1 day 3 class participation class exercise – paul austin publ. 4491-w exercise page...
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2010 Tax Class 1
Day 3 Class Participation
Class Exercise – Paul AustinPubl. 4491-W Exercise page 98
Advanced Section
2010 Tax ClassTax Year 2009 2
Austin’s Intake SheetPart I Personal Information
2010 Tax ClassTax Year 2009 3
Austin’s Intake SheetPart II Family & Dependent
2010 Tax ClassTax Year 2009 4
Austin’s Intake sheet Part III Income
2010 Tax ClassTax Year 2009 5
Austin’s Intake sheet Part IV Expenses
2010 Tax ClassTax Year 2009 6
Austin’s Intake sheet Part V Life Events
2010 Tax ClassTax Year 2009 7
Austin’s SS Card & Check
2010 Tax ClassTax Year 2009 8
Are You ready to start filling in Austin’s 1040 Tax
Returns?
YES ? What is his filing status? Does he have any dependents?
NO ? Why Not? What Questions do you need to have
answered?
2010 Tax ClassTax Year 2009 9
Austin’s Interview pt 1
2010 Tax ClassTax Year 2009 10
Austin’s Filing Status
No Dependents
Married Filing Separately
2010 Tax ClassTax Year 2009 11
Austin’s W-2
2010 Tax ClassTax Year 2009 12
Austin’s Tier I Railroad Retirement
2010 Tax ClassTax Year 2009 13
Austin’s Tier I Railroad Payment
Where does it get entered on the 1040?
How much of it is taxable?
2010 Tax ClassTax Year 2009 14
Austin’s Tier I Railroad Payment
Under Social Security
85% is taxable
2010 Tax ClassTax Year 2009 15
Austin’s Railroad Retirement
2010 Tax ClassTax Year 2009 16
Austin’s Railroad Retirement Payment
Do we have sufficient information about his Railroad Retirement Payment from the RRB-1099-R? Yes? No?
Why not?
2010 Tax ClassTax Year 2009 17
Interview Answers Paul retired from the railroad on June
1, 2004. His annuity does not make provision
for joint and survivor annuity.
2010 Tax ClassTax Year 2009 18
Austin’s W-2
2010 Tax ClassTax Year 2009 19
Austin’s Dividend Statement
2010 Tax ClassTax Year 2009 20
Interview InformationNew Home Purchase
Purchase date April 18, 2010 Sold previous home in December 15,
2005 Purchase Price $134,000 Did not purchase home from a relative. Eligible for First Time Home Owner
Credit?
2010 Tax ClassTax Year 2009 21
New House Purchase Expenses
2010 Tax ClassTax Year 2009 22
New House Purchase Expense
Deductable on 2010 Taxes? Lawyer’s Fees $477 J&J Survey Co $375 Title Insurance $250 Termite Inspection $300 Reimburse Seller for Taxes Pd $168 Recoding Fees $80 Transfer Taxes $588 Homeowner’s Insurance $320
2010 Tax ClassTax Year 2009 23
Schedule A Interview Information
Form 1098 Information Mortgage Interest $1,559.25 Points Paid on Purchase $1,000 Mortgage Insurance Interest $272.86 Real Estate Taxes $676.79
New House Settlement Taxes Pd $167.33
Church Contributions Statement $1700
2010 Tax ClassTax Year 2009 24
Austin’s Federal Tax Return
AGI $38,211 Itemized + Personal Deduction $10,672 Taxable Income $27,539 Income Tax $3,680 Federal Tax Withheld $5,011 Make Work Credit $400 First Time Homebuyer’s Credit $4,000 Overpaid $5,731
2010 Tax ClassTax Year 2009 25
Austin’s NY State Tax ReturnIT-201
L 18 Federal AGI $38,211 L 24 NY State AGI $38,211 NY Subtractions
L 27 Taxable SS $5619 L 29 Taxable Pensions $ 838 L31 Other S2 (RR Pen) $8686
Total NY Subtractions $15,143 NY State AGI $23,068
2010 Tax ClassTax Year 2009 26
Austin’s NY State Tax ReturnIT-201
NY State AGI $23,068 NY State Tax $ 712 NY Household Credit $ 30 L 44 & 46 Net Tax $ 682 NY State Withholding $ 1,521
Overpaid $ 839