VITA MATERIAL 2015-2016

Scenario 1: Wendy Gordon Interview Notes Wendy is 20 years old, single, and a U.S. citizen with a valid Social Security number. On Wendy's Intake and Interview sheet, she answered "Unsure" to the question, "Can anyone claim you or your spouse on their tax return?" During the interview with Wendy, you determine the following facts: Wendy was a full-time student during 2015. Her only income was $6,500 in wages. She lived with her parents all year, but they told her they will not claim her on their 2015 return. Wendy's parents are required to file a return. Wendy does not provide more than half of her own support.

Scenario 2: Joanne Parks Interview Notes Joanne is 32, unmarried, and earned $40,000 in wages. Joanne's 67-year-old single father, John, lives in his own apartment in Seattle. Joanne provided more than half of her father's support and all the cost of keeping up her father's home. John's only income was $6,800 in Social Security benefits. None of John's Social Security income is taxable, and he is not required to file a tax return. Joanne had qualified employee health insurance coverage for all of 2015. John had Medicare Parts A and B coverage all year. Joanne and John are U.S. citizens and have valid Social Security numbers.

Scenario 3: Mike Hastings Interview Notes Mike is 45 and made $19,000 in wages in 2015. He is single and pays all the cost of keeping up his home. Mike's daughter, Brittany, lived with Mike all year. Brittany's son, Hayden, was born in November 2015. Hayden lived in Mike's home since birth. Brittany is 18, single, and had $1,700 in wages in 2015. Mike provides more than half of the support for both Brittany and Hayden. Mike, Brittany, and Hayden are all U.S. citizens with valid Social Security numbers.

Scenario 4: Paul and Jessica Vermilion Interview Notes Paul, age 24, and Jessica, age 22, are married and want to file a joint return. They have one child, Naomi, who is 3 years old and lived with them all year. Paul and Jessica lived in the U.S. all year and have Individual Taxpayer Identification Numbers (ITINs). They are not U.S. citizens and are not lawfully present in the U.S. Paul earned $32,000 in wages. They had no other income. Paul and Jessica provided all the support for Naomi. Naomi has a Social Security number and is a U.S. citizen. Paul and Jessica did not have any health insurance in 2015. Naomi had minimum essential coverage (MEC) all year.

Scenario 5: Jim Wells and Sally Fulton Interview Notes Jim and Sally are not married. They lived together all year. Sally had $5,000 in earned income during 2015. Jim earned $30,000 in wages. Jim and Sally have two children. Tyler is 10 years old, and Jamie is 8. Tyler and Jamie lived with Jim and Sally for all of 2015. Tyler and Jamie did not provide over half of their own support. Jim paid all the rent, utilities, groceries, and other household expenses, which totaled $16,000. Sally paid none of the household expenses. Jim and Sally agreed they would each claim one child on their individual tax returns. Jim, Sally, Tyler and Jamie are all U.S. citizens with valid Social Security numbers.

Scenario 6: Melinda Armstrong Interview Notes Melinda is single and employed as a clerk. Melinda earned $47,000 in wages, and had no other income. In 2015, she took a computer class at the community college to improve her job skills. She has a student account statement showing she paid $900 for tuition. She paid $300 for a course book that she ordered from an online bookseller. Purchase of the book was not a requirement of enrollment. She also paid $50 for a parking permit that was not a requirement of enrollment. Melinda does not have enough deductions to itemize. Melinda is a U.S. citizen with a valid Social Security number.

Scenario 7: Warren and Shirley Graves 14. Warren has an Identity Protection PIN. How does this affect his return preparation? 15. The $9 of savings account interest is required to be included on the return even though no Form 1099-INT was issued. 16. The taxable amount of Warren's Social Security income is $17,000. 17. Warren is over 65. How does that affect their tax return? 18. Warren and Shirley want to avoid having a balance due next year. Warren can submit a Form W4-P to have tax withheld on his pension. 19. The Graves are not required to make a shared responsibility payment on Form 1040, page 2.

Scenario 8: Teresa Martin 20. Is Head of Household the most advantageous allowable filing status Teresa can use? 21. Zack is Teresa's qualifying child for which of the following benefits? 22. What is the total federal income tax withholding for Teresa's tax return? $_______. (Do not enter dollar signs, commas, periods, or decimal points in your answer.) 23. What is the credit for child and dependent care expenses on Form 2441, line 11? 24. Teresa and her children did not have Minimum Essential Coverage (MEC) for two months of the tax year. How does this affect her tax return? 25. What is the amount of additional tax on the distribution from Teresa's 401(k), shown in the Other Taxes section of Form 1040?

Scenario 9: Evan James Swift 26. Evan's total for itemized deductions on Schedule A, line 29 is $12,646. 27. Can Evan claim Head of Household filing status? 28. To compute the American opportunity credit, which of Noah's expenses qualify? 29. The amount of Evan's retirement savings contributions credit from Form 8880, line 12 is $190. 30. Evan's student loan interest deduction from Form 1040, page 1 is $700.