Go to www.irs.gov and download the appropriate tax forms for the current period

Question

Go to www.irs.gov and download the appropriate tax forms for the current period and prepare a tax return for Dick Bench. Dick and Tina Bench live at 230 Main Street, Platteville, WI 53818, and their Social Security numbers are 233-43-4523 and 342-22-3476. They have one child, Tony, who is 8 years old. Tony's Social Security number is 456-34-6578. Dick's salary from a night guard job and income tax withholding for the year are as follows:

Dick contributed $4,000 to his IRA account. The Benches moved from Florida to Wisconsin in the beginning of the current year. Their moving expenses include (all non-reimbursed):

Tina started and managed the Cuber Cafe. Revenue and expenses for the year are presented below:

Dick and Tina own a house in Platteville that they rent to students for $800 per month. They incur the following expenses for the year (11 months):

Directions:

Complete the Bench's Federal Tax Return for the year.

Wages $36,000 Interest earned on savings account 1,600 Federal income tax withheld 5,000 State income tax withheld 2,000

Explanation / Answer

Wages Income 36000 Cuber Café Rent from Owned House (11 months) Interest On savings Account 1600 Revenue 70000 Rent 8800 Income from Cuber Café 33320 COGS 13500 (17000-3500) Expenses 9400 Loss From Rent of House -600 Wages 8500 Loss -600 Expenes of Moving into new house -5160 Utilities 1500 IRA Contribution -4000 Rent 7800 Total Income 61160 Advertisment 2000 Tax Due 8251.5 1845+15% above 18450 Payroll 680 Tax Paid 7000 Subcontract 2200 Tax Payable 1251.5 other expense 500 Income 33320

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