Fill out a 1040, Schedules A, B, C, D, & – Free Nursing Tutor

Fill out a 1040, Schedules A, B, C, D, & Schedules 1/2/3 with the following information. 

Tax Return Project

BA 431, Fall 2021

Use the following information to prepare an individual tax return complete with appropriate

schedules and attachments.  In addition to the 1040 and schedules, please attach your work

papers and calculations.

Taxpayer and Spouse:

Name: Wilbur Farnstrom                          Name: Ethel Farnstrom

Address: 3083 Honeysuckle Avenue       Address: 3083 Honeysuckle Avenue

Dallas, OR  97338                                    Dallas, OR  97338

SS#: 123-45-6789                                   SS#: 234-56-7890

Birth date: 6/10/1959                               Birth date: 2/12/1962

Status: Married, filing jointly                    Status: Married, filing jointly

Dependents:

Name: Grace Farnstrom, daughter         Name: Howard Farnstrom, son

Address: 3083 Honeysuckle Avenue      Address: 3083 Honeysuckle Avenue

Dallas, OR  97338                                  Dallas, OR  97338

SS#: 345-67-8901                                  SS#: 567-89-1023

Birth date: 10/11/2004                            Birth date: 11/12/2006

2

Wilbur is employed as a Bank Manager and has W-2 income of $5,400 per month.  Federal

taxes of $380 per month are withheld from his gross pay.

Ethel is employed part-time as a receptionist and has W-2 income of $2,300 per month.  

Federal taxes of $190 per month are withheld from her gross pay.

State income taxes totaling $348 per month and $150 per month have been withheld from

their gross pay, respectively.

Ethel has a small transcription business that she runs from her home.  She has dedicated a 4th

bedroom in the family’s 4,200 square foot home to the business.  The room measures 16 x 20.  

She reports income for this year of $12,500 from the small business.  Ethel paid estimated

quarterly taxes of $270 per month for three quarters.  Costs relating to the home are as

follows:

Annual Property taxes $5,800

Annual Mortgage Interest $11,800

Utilities $184 per month

Business telephone $94 per month

Office supplies $65 per month

Depreciation $68 per month

The couple has received $201 in interest income on their savings account for the year.  Every

month, Wilbur deposits $300 to his traditional IRA account and Ethel deposits $175 to her

traditional IRA account.

Wilbur takes prescription medications that cost $285 per month.  The family incurred dental

expenses this year of $3,767 and medical expenses of $9,628 for the year.  Ethel went to the

eye doctor this year and purchased eyeglasses with a cost to her of $440.  Wilbur had to travel

to visit a specialist for a heart condition to a city 375 miles from his home.  He made the

roundtrip twice this year.  

3

The Farnstrom family attends Countryside Church each Sunday.  They have an automated

deduction from their checking account for contributions of $85 per week.  The family traveled

on behalf of their church this year.  They kept a travel log that indicates they traveled 1,610

miles in charitable travel.  

The employees of the bank where Wilbur works are represented by a union.  Union dues are

1.6% of each employee’s gross pay.  

The full-time employees at the office where Ethel works are also represented by a union.  Union dues are 1.3% of each full-time employees gross pay.

Ethel has some antique jewelry that has sentimental value.  To ensure its safety, she has

obtained a safe deposit box at Wilbur’s bank.  The fee for the box is $28 per month. The

Farnstrom’s store their tax returns and investment information in the box as well.

The couple takes their tax return to a CPA for preparation.  The CPA worked on the returns for

five hours at an hourly fee of $250 per hour.

Wilbur and Ethel purchased 700 shares of LOL, Inc stock for $19.00 per share 18 months ago.  

This year they sold the stock for a total of $16,500.  The transaction had an investment fee of

$250.  They also sold 500 shares of long term stock to Ethel’s sister for a loss of $10 per share.

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

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