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Prepare a current year federal income tax return for Joe and Jill Biden using the information,
below. Please include all documents that would be included with the Bidens’ tax filing (other
than form W-2s, since they are prepared by the employers). As such, the filing will include
the base IRS form 1040, plus all necessary schedules and attachments.
Please Note:
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The form 1040 structure follows the “Basic Tax Formula,” and generally, required
attachments will be listed on the 1040 form (e.g., Line 2a and 3a of the form 1040
provides to attach Schedule B if required; Line 8a of 1040 provides it should be the
amount of adjustments from Schedule 1, line 22, etc.).
Please make up any non-financial information needed to complete the tax return that is
not provided below.
Forms are available at: http://www.irs.gov/formspubs/ (Links to an external site.). Please
use 2020 forms if 2021 ones are not yet available. It is important that you ultimately
submit all of the forms required, which may be listed/required by different line items on
the 1040, with the exception of the W-2.
Very Important: Save the forms to your computer before entering any information.
Multiple files/forms may be submitted to this Canvas dropbox, per these
instructions (Links to an external site.).
Relevant Client Information:
Social Security Numbers:
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Joe: 123-45-6789
Jill: 333-222-111
Hunter (son): 555-77-6666
Ages:
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Joe: 73
Jill: 69
Hunter: 11
Jill paid $7,000 in childcare expenses for Hunter while she worked.
Salaries:
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Joe: $35,000
Jill: $30,000
Hunter: $600
Interest & Dividends:
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Interest from Mellon Bank: $6,000
Interest on Delaware municipal bonds: $4,000
Dividends on Microsoft, Inc. stock: $2,000
Sold 1,000 shares of IBM stock for $6,000 on January 15, 2021. Shares were purchased on
January 15, 2014, for $3,000.
Real Estate:
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Joe and Jill rented out the old family home in Delaware for the entire year.
o Rental income: $9,000
o Mortgage interest: $4,000
Depreciation: The house was purchased on 12/01/19 at a cost of $100,000 and has
depreciated on a straight-line basis over 27.5 years. Accumulated Depreciation from prior
years was $3,788.
Mortgage interest on the white house owned by Joe and lived in by family: $8,000
Real estate taxes on the white house: $8,000.
Taxes Paid:
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State income taxes withheld from Joe’s wages: $6,000
Federal income taxes withheld from Joe’s wages: $4,000
Delaware City sales tax paid by Joe: $1,800.
State income tax refund of 2020 overpayment received in 2021: $2,000 (2020 state
income taxes were fully deductible on the 2020 tax return)
Miscellaneous:
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Joe had $5,000 of business travel expenses, which were reimbursed by his employer.
Joe contributed $6,000 to Syracuse University, and $7,000 to Delaware University during
the year.
Jill paid $4,000 of student loan interest.

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