Professional Documents
Culture Documents
Directions
Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario.
Note: When entering Social Security numbers (SSNs) or Employer Identification
Numbers (EINs), replace the Xs as directed, or with any four digits of your choice.
Interview Notes
Samanthas husband died in March 2013. She has not remarried.
Samantha owned and lived in her home since 2010. After struggling to make the
mortgage payments for the last few years, she worked out a loan modification
agreement with her lender. The modification reduced her principal balance and
monthly payment and allowed her to stay in the home.
Samantha purchased the home in 2010 for $160,000. In January 2016, at the time
of the workout, the balance owed was $145,000. The home was never used in
a business or as rental property. The mortgage was used to purchase, and was
secured by, the home. Samantha has not filed for bankruptcy.
Samantha provided the entire cost of maintaining the household and all the support
for her children, Meredith and Oliver, in 2016.
Her younger brother, Howard, is permanently and totally disabled. He received
disability income which he used to provide more than half of his own support.
Samantha lost her job in December 2015. She received unemployment for two
months in 2016 until she found a new job.
Samantha provides translation services to earn extra income. She received a Form
1099-MISC. Her only expense related to this income was $50 in office supplies.
Meredith and Oliver attended day care while Samantha worked.
Samantha, Meredith, and Oliver had health insurance that provided minimum
essential coverage (MEC) paid by her new employer beginning on March 1, 2016.
She and the children did not have MEC for January and February. Samantha,
Meredith, and Oliver had health insurance through her previous employer until
December 15, 2015. Howard had MEC all year. None of them purchased insurance
through the Marketplace.
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