Prepare 2012 forms 1040 and 8949

Prepare 2012 Forms 1040 and 8949
– Prepare 2012 Schedules A, B, and D
– Prepare 2012 “Social Security Benefits Worksheet”
o Located in 2012 Form 1040 instructions
Due Date: Beginning of class – October 29th
Luke and XXXXX XXXXX are married and their address is 111 S. Harrison Street, Omaha, NE 68166. Luke is employed as a dentist and Lisa is retired but runs a small business out of their home. The Jones’ personal information is as follows:
Name
SSN
Birthday
Luke S.
XXX-XX-XXXX
12-10-45
Lisa K.
XXX-XX-XXXX
05-04-47
Luke and Lisa had the following income and expenses during 2012:
Income:
Luke Salary
$118,000
Gift from Luke’s Mother
$10,000
Interest Income from USA Bank on savings account
$1,000
Interest Income from city of Omaha bond
$8,000
Dividend Income from ABC Corporation (not qualified)
$6,000
Business Income from Schedule C
$5,000
Life insurance proceeds (Lisa’s father past away)
$100,000
Lisa’s inheritance from father’s estate
$50,000
Lisa’s Social Security Benefits (from Box 5 on form SSA-1099)
$18,000
Proceeds from Stock Sales*
$18,250
Expenses:
Home mortgage interest
$3,600
Charitable contributions
$20,000
Gave equal cash gifts to each of their 3 grandchildren
$39,000
State Income Tax Withholding
$7,500
Federal Income Tax Withholding
$12,000
Qualified Medical Expenses
$15,000
Interest paid on credit cards
$1,200
Interest on car loan
$800
Property taxes on automobiles
$1,000
Contributions to traditional IRAs
$10,000
Real estate taxes on home
$6,000
Tax return preparation fee
$4,000
Unreimbursed employee business expenses
$2,000
*The proceeds from stock sales came from two separate transactions during 2012:
– On April 12th, Luke sold 250 shares of XYZ Corporation stock for $25/share. Luke had originally bought those shares on March 5, 2003 for $30/share.
– On July 23rd, Luke sold 300 shares of MNO Corporation Stock for $40/share. Luke has originally bought those shares on January 11, 2012 for $25/share.
You work as a tax professional at UNO, LLP. The Jones’ have hired you to prepare their 2012 tax return. The firm’s address is 1040 South 102nd Street, Omaha, NE 68166 and their EIN is 14-7598461. Your PTIN is P11223355.
Hints:
 For Form 8949, check box A and there are no adjustments to gains or losses.
 Neither Luke nor Lisa participate in employer sponsored retirement plans.
 Disregard any applicable credits.
 You do not have to fill out Schedule C, Form 2106 or any other form that is not listed as required for the project.

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