Bill is 22 years old, single, and a U.S. citizen

Interview Notes

· Bill is 22 years old, single, and a U.S. citizen with a valid social security number.

· On Bill’s Intake and Interview sheet, he answered “Unsure” to the question, “Can anyone claim you or your spouse on their tax return?"

· During the interview with Bill, you determine the following facts:

· Bill was a full-time student during 2014.

· He earned $7,000 in wages and had interest income of $10 from a savings account.

· He lived with his parents all year, but they told him they will not claim him on their 2014 return. Bill's parents are required to file a return.

· Bill does not provide more than half of his own support.

1. Bill can claim one personal exemption on his 2014 tax return.

2. Bill has a filing requirement and must file a tax return.

Interview Notes

· Julia is 46 and made $32,000 in wages in 2014. She is single and pays all the cost of keeping up her home.

· Julia's daughter, Beth, lived with Julia all year.

· Beth's baby, Piper, was born in November 2012. Piper lived in Julia's home since birth.

· Beth is 27, single, and had $3,200 in wages in 2014. She had no other income and is not disabled.

· Julia provides more than half of the support for both Beth and Piper.

· Julia, Beth, and Piper are all U.S. citizens with valid social security numbers.

· Julia and Piper have minimum essential health coverage. Beth did not have health insurance at all in 2014.

3. Who can claim Piper as a dependent?

Interview Notes

· Julia is 46 and made $32,000 in wages in 2014. She is single and pays all the cost of keeping up her home.

· Julia's daughter, Beth, lived with Julia all year.

· Beth's baby, Piper, was born in November 2012. Piper lived in Julia's home since birth.

· Beth is 27, single, and had $3,200 in wages in 2014. She had no other income and is not disabled.

· Julia provides more than half of the support for both Beth and Piper.

· Julia, Beth, and Piper are all U.S. citizens with valid social security numbers.

· Julia and Piper have minimum essential health coverage. Beth did not have health insurance at all in 2014.

4. Who can Julia claim as a qualifying child(ren) for the earned income credit?

5. Beth did not have health insurance at all in 2014. How does this affect Julia's return?

Interview Notes

· George and Maria are married and want to file a joint return.

· They have one child, Isabel, who is 5 years old and lived with them all year.

· George, Maria, and Isabel have Individual Taxpayer Identification Numbers (ITINs).

· George, Maria, and Isabel live in the U.S. but they are not lawfully present in the U.S.

· George, Maria, and Isabel did not have any health insurance for all of 2014.

· George earned $37,000 in wages, and had no other income. Maria had no income.

· George provided all the support for Maria and Isabel.

6. Why are George and Maria not eligibleto claim the earned income credit?

7. George and Maria do not qualify for a health coverage exemption and must make a shared responsibility payment.

Interview Notes

Steven sold some stock in 2014, and has come to you to prepare his tax return.
ABC stock:

· Steven purchased 100 shares of ABC stock for $5,000, including commissions, on November 7, 2005.

· Steven sold 25 shares of ABC on July 1, 2014. His Form 1099-B shows sales price, less commissions, of $2,000. The basis is not provided on Form 1099-B.

XYZ stock:

· On March 15, 2014, Steven sold 150 shares of XYZ stock, which he purchased in 1998.

· Steven does not know the basis for his XYZ stock, and the basis is not shown on the Form 1099-B he received from the broker.

PSA mutual fund:

· On October 7, 2013, Steven purchased 1,000 shares of the PSA mutual fund for $7,500.

· On March 7, 2014, the fund paid a capital gain distribution of $200 that was reinvested to purchase an additional 20 shares.

· Steven received Form 1099-DIV reporting the capital gain distribution. He also received a year-end statement showing $10,500 as the December 31, 2014, value of his 1,020 shares.

8. Steven's basis in the 25 ABC shares he sold is $1,250.

9. Steven files his 2014 return showing zero basis for the XYZ shares he sold. The following month, he determines the correct basis of his XYZ shares is $950. What should he do?

10. The reinvested capital gain distribution increased Steven's total basis in his PSA mutual fund shares.

11. Chad is eligible to claim the American opportunity credit.

12. Which of the following are Chad’s qualified educational expenses for the lifetime learning credit?