Question

Comprehensive Problem 1-1

Patty Banyan is a single taxpayer, age 35, living at 543 Space Drive, Houston, TX 77099. Her Social Security number is 466-33-1234. For 2016, Patty has no dependents, and her W-2, from her job at a local restaurant where she parks cars, contains the following information:

a Employee's social security number 466-33-1234

OMB No. 1545-0008

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b Employer identification number (EIN) 33-1235672			1 Wages, tips, other compensation 19,600.00		2 Federal income tax withheld 2,940.00
c Employer's name, address, and ZIP code Burger Box 1234 Mountain Road Houston, TX 77099			3 Social security wages 19,600.00		4 Social security tax withheld 1,215.20
			5 Medicare wages and tips 19,600.00		6 Medicare tax withheld 284.20
			7 Social security tips		8 Allocated tips
d Control number			9		10 Dependent care benefits
e Employee's first name and initialLast nameSuff. Patty Banyan 543 Space Drive Houston, TX 77099			11 Nonqualified plans		12a See instructions for box 12
f Employee's address and ZIP code
			13Statutory employee Retirement plan Third-party sick pay □ □ □		CodeD	$
					12b
			14 Other		Code	$
					12c
					Code	$
					12d
					Code	$

15 State TX	Employer's state ID number	16 State wages, tips, etc.	17 State income tax	18 Local wages, tips, etc.	19 Local income tax		20 Locality name
Form W-2 Wage and Tax Statement Copy—To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service.			2016	Department of the Treasury—Internal Revenue Service

These wages are Patty's only income for 2016. Patty wants to donate $3 to the Presidential Election Campaign Fund. The election to donate does not affect tax liability in any way.

Click here to access the table tax to use for this problem.

Required:

Complete Form 1040EZ for Patty Banyan for the 2016 tax year.

Enter all amounts as positive numbers. If an amount box requires no entry or the amount is zero, enter "0".

Department of the Treasury—Internal Revenue Service Income Tax Return for Single and Joint Filers With No Dependents    (99) Form 1040EZ 2016 OMB No. 1545-0074 Your first name and initial Patty Last name Banyan Your social security number 466-33-1234 If a joint return, spouse's first name and initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. 543 Space Drive Apt. no. ▲ Make sure the SSN(s) above are correct. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Houston, TX 77099   Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund.              ☒ You    ▢ Spouse Foreign country name Foreign province/state/country Foreign postal code Income Attach Form(s) W-2 here. Enclose, but do not attach, any payment. 1 Wages, salaries, and tips. This should be shown in box 1 of your Form(s) W-2. Attach your Form(s) W-2. 1   2 Taxable interest. If the total is over $1,500, you cannot use Form 1040EZ. 2   3 Unemployment compensation and Alaska Permanent Fund dividends (see instructions). 3   4 Add lines 1, 2, and 3. This is your adjusted gross income. 4   5 If someone can claim you (or your spouse if a joint return) as a dependent, check the applicable box(es) below and enter the amount from the worksheet on back. ▢ You       ▢ Spouse If no one can claim you (or your spouse if a joint return), enter $10,350 if single; $20,700 if married filing jointly. See back for explanation. 5   6 Subtract line 5 from line 4. If line 5 is larger than line 4, enter -0-. This is your taxable income. ► 6   Payments, Credits, and Tax 7 Federal income tax withheld from Form(s) W-2 and 1099. 7   8a Earned income credit (EIC) (see instructions) 8a b Nontaxable combat pay election. 8b 9 Add lines 7 and 8a. These are your total payments and credits. ► 9   10 Tax. Use the amount on line 6 above to find your tax in the tax table in the instructions. Then, enter the tax from the table on this line. 10   11 Health care: individual responsibility (see instructions) Full-year coverage ▢ 11   12 Add lines 10 and 11. This is your total tax. 12   Refund Have it directly deposited! See instructions and fill in 13b, 13c, and 13d, or Form 8888. 13a If line 9 is larger than line 12, subtract line 12 from line 9. This is your refund. If Form 8888 is attached, check here ► ▢ 13a ► b Routing number ► c Type: ▢ Checking    ▢ Savings ► d Account number Amount You Owe 14 If line 12 is larger than line 9, subtract line 9 from line 12. This is the amount you owe. For details on how to pay, see instructions. ► 14 Third Party Designee Do you want to allow another person to discuss this return with the IRS (see instructions)? ▢ Yes. Complete below. ▢ No Designee's name ► Phone no. ► Personal identification number (PIN) ► Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and, to the best of my knowledge and belief, it is true, correct, and accurately lists all amounts and sources of income I received during the tax year. Declaration of preparer (other than the taxpayer) is based on all information of which the preparer has any knowledge. ► Your signature Patty Banyan Date Your occupation Parking Attendant Daytime phone number Spouse's signature. If a joint return, bothmust sign. Date Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Paid Preparer Use Only Print/Type preparer's name Preparer's signature Date Check ▢ if self-employed PTIN Firm's name ► Firm's EIN ► Firm's address ► Phone no. For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see instructions. Cat. No. 11329W Form 1040EZ (2016)

Answer 1

Department of the Treasury—Internal Revenue Service Income Tax Return for Single and Joint Filers With No Dependents    (99)
	Form 1040EZ	2016
			OMB No. 1545-0074

Your first name and initial Patty	Last name Banyan		Your social security number 466-33-1234
If a joint return, spouse's first name and initial	Last name		Spouse's social security number
Home address (number and street). If you have a P.O. box, see instructions. 543 Space Drive		Apt. no.	▲ Make sure the SSN(s) above are correct.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Houston, TX 77099			Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund.              ☒ You    ▢ Spouse
Foreign country name	Foreign province/state/country	Foreign postal code

Income Attach Form(s) W-2 here. Enclose, but do not attach, any payment.	1	Wages, salaries, and tips. This should be shown in box 1 of your Form(s) W-2. Attach your Form(s) W-2.					1	19600
	2	Taxable interest. If the total is over $1,500, you cannot use Form 1040EZ.					2	0
	3	Unemployment compensation and Alaska Permanent Fund dividends (see instructions).					3	0
	4	Add lines 1, 2, and 3. This is your adjusted gross income.					4	19600
	5	If someone can claim you (or your spouse if a joint return) as a dependent, check the applicable box(es) below and enter the amount from the worksheet on back. ▢ You       ▢ Spouse If no one can claim you (or your spouse if a joint return), enter $10,350 if single; $20,700 if married filing jointly. See back for explanation.					5	10350
	6	Subtract line 5 from line 4. If line 5 is larger than line 4, enter -0-. This is your taxable income.				►	6	9250
Payments, Credits, and Tax	7	Federal income tax withheld from Form(s) W-2 and 1099.					7	2940
	8a	Earned income credit (EIC) (see instructions)					8a	438
	b	Nontaxable combat pay election.			8b
	9	Add lines 7 and 8a. These are your total payments and credits.				►	9	3378
	10	Tax. Use the amount on line 6 above to find your tax in the tax table in the instructions. Then, enter the tax from the table on this line.					10	923
	11	Health care: individual responsibility (see instructions)			Full-year coverage ▢		11	0
	12	Add lines 10 and 11. This is your total tax.					12	923

Refund Have it directly deposited! See instructions and fill in 13b, 13c, and 13d, or Form 8888.	13a	If line 9 is larger than line 12, subtract line 12 from line 9. This is your refund. If Form 8888 is attached, check here ► ▢				13a		2455
	► b	Routing number		► c Type: ▢ Checking    ▢ Savings
	► d	Account number
Amount You Owe	14	If line 12 is larger than line 9, subtract line 9 from line 12. This is the amount you owe. For details on how to pay, see instructions.					► 14	0