Problems: Chapter 4-58 (Daniel and Freida Butler) South-Western Federal Taxation Comprehensive Volume (2016). Prepare the Tax Return for 2015.
Due: See Syllabus
Changes to Problem: Change all years to one year later (for example, 2014 becomes 2015).
The following information should be helpful in your preparation of the tax return.
(1) (a) Requirement: Prepare the federal income tax return on the appropriate IRS forms. (Even if you use a software program, you must turn in manual entries on IRS forms.) Copies of those forms and instructions are available at www.irs.gov.
(b) Additional Requirements: Prepare a brief top sheet summarizing the factual information in the format of the tax formula.
(2) Strategy: You might want to start with page 1 of the 1040 and manually make entries (pencil recommended). You may then need to do subsidiary forms (e.g., Schedules A & B). You might also want to work out the figures for the tax formula roughly first before beginning the return.
(3) Check Figures:
Adjusted gross income 173,182 Itemized 15,200
Taxable income 142,182
(4) Grading:
(a) Per the syllabus, this manual return is 10 points extra credit.
(b) Forms required: 1040 pages 1 and 2, Schedules A, B, and E p. 2, worksheet line 44.
(5) Additional Helpful Information:
(a) Please use the sequence numbers in the upper right-hand corner of the official IRS forms for the proper order.
(b) Do not calculate next year’s estimates or any late filing penalty or interest.

(6) Notes:(a) Dividends are both qualified and ordinary.(b) OID is $382 and should be included on Schedule B.