See attached please.Preparing Tax Return Problems Computerized ProConnect Tax Online Tax...

Question

See attached please.Preparing Tax Return Problems      Computerized    ProConnect Tax Online Tax Preparation Software is included with your textbook.  Go to  TaxEducation.Intuit.com and create an account.      To help you get started, there are training videos and articles.  You’ll want to review the  Navigating a Tax Return PDF before starting.  You will want to take some time  familiarizing yourself with the software.     For this class and course work, you will not file an electronic return (e-File), and you will  not file a state (Michigan) return.  Note: under Profile, you’ll uncheck the boxes for E-File  and State.    After reading the problem and its requirements click on the New Return button (on the  right side of the ProConnect Tax Returns screen). Starting with Create a New Client -  Client Information – Individual, this will take you through a series of screens to enter the  taxpayer information (provide in the problem). Enter the data from the problem in each  appropriate section. Start with the information from the Manual problem document, then  make adjustments from the Computerized problem document.    Utilize the form instructions.  i.e.  2019 Form 1040 Instructions     Just because information or amounts are provided in the problem does not mean it  belongs on the tax return. Enter amounts and data on the tax return only if required  based on tax rules.    Since you are not filing an electronic return (e-File) you can ignore errors messages  related to tax identification numbers (social security numbers (SSN) and employer  identification numbers (EIN)).    For this class and course work, you will not file state returns; therefore it is not necessary  to download state returns.    All tax return problems are to be submitted in PDF format.  In Intuit Proconnect, under  the File Return tab, click on View Return PDF and print to Adobe PDF.    https://taxeducation.intuit.com/login/#/signin https://www.irs.gov/pub/irs-pdf/i1040gi.pdf TM Navigating a Tax Return What to Expect Work more efficiently from start to finish with guided workflows built-in to  the tax return workflow.  The four tabs along the top of the tax  return workspace represent each step to  complete a tax return.   Set up the outline for the tax return in the  Profile tab.  Select the type of return(s) or  form(s) you’re filing and add state returns. Log in to ProConnect Tax Online. Select Tax  Returns at the top of the main navigation,  then select a client to open their return.  The navigation tree is a guide to help you  enter tax data in the same order of the tax  return forms. Expand and collapse sections,  then click the titles to jump to the input form.   Customize your view to expedite the check  review process. Select Applicable to view  only the forms applicable to the tax return. e-File the return and/or applicable forms,  then print or download. You can also  request a client eSignature.     Get Started Profile Tab Tax Return Workflow  Input Return Tab Check Return Tab File Return Tab TM Navigating a Tax Return Profile Tab Tax Return Workflow  Input Return Tab Check Return Tab File Return Tab    ACCT 315 FALL 20 Intuit Tax Software Problem     Davenport University  Federal Taxation I  ACCT 315    Instructor: Darlena Billops-Hill    TAX PREPARATION SOFTWARE T A X R E T U R N P R O B L E M     ***********************************************************  REQUIREMENT  1.  Prepare a 2019 tax return using Intuit software or other tax preparation software  2.  Write a tax memo/letter advising the Northways how to improve their tax position.     ***********************************************************  Use the same information as the Manual problem subject to the following revisions:    The Northways updated their exterior windows in their primary residence last year. The new  windows exceed the energy efficiency criteria established by the International Energy  Conservation Code (IECC) for the climate zone.  They have brought the manufacturer’s  certification along.  The cost of the new windows total $4,700.       John’s Bargain Books sold $317,000 of merchandise.  They had a beginning inventory of  $39,250 and an ending inventory of $44,300.  All other expenses/transactions remained the  same except John does not elect to take §179 expensing or additional first year depreciation on  his office furniture purchase; but does elect to take the §179 deduction for the computer  system.  He made quarterly estimated Federal income tax payments of $1,500 on January,  April, June and September, 2019 ($6,000 in total payments).  Michigan estimated income tax  payments were $400 per quarter or $1,600 for the year.     The Northways sold 1,000 shares of Capp Corp stock they had received as a wedding present on  June 25, 2002.  The stock was worth $6 per share in January but had had dropped to $4 per  share on September 3 when the Northways sold the stock on that date.  They had been given  the stock by John's father, who paid $9.50 per share for it in 1973.  Its value at the date of gift  was $18.50 per share. No gift tax was paid on the gift.  (The Northway's basis is $9.50 per  share.)    John has 3 employees and is contemplating the Affordable Health Care Act provisions and the  effect they will have on his business operations.  He wonders how to keep his business  profitable, how to best take advantage of available tax deductions and credits and how they  can plan more efficiently to minimize their tax burden while increasing their wealth.  He is  expecting his gross receipts to grow by 5% next year.       John’s brother, Mike, would like to claim mom Beverly next year on his tax return.  The children ACCT 315 FALL 20 Intuit Tax Software Problem     are getting older and Phyllis is wondering how changes in the family composition and tax law  changes might effect their 2020 taxes and what steps they can take now to reduce their tax  liability next year.    What advice can you offer the Northways on how they can improve their current tax situation  and improve their tax planning process for next year?      Compose a 2 page tax memo or a client letter to the Northways enumerating all of your tax  recommendations and the reasons why the proposed changes make sense.   Client Letter and Tax Memo Examples  Name  Address  City, ST  Zip Code Date  Mr. Paul Chaing  4522 Fargo Street  Geneva, IL 60134  Dear Mr. Chaing:  This letter is in response to your questions concerning the availability of the rehabilitation tax credit  for expenditures that you plan to incur in the rehabilitation of your qualifying historic structure and  their impact on the cost recovery basis of the structure. It is our understanding that you purchased  the qualifying historic structure for $350,000 (excluding the cost of land) and that you intend to  incur rehabilitation expenditures of either $320,000 or $380,000.  For the credit to be available, the law requires that a taxpayer substantially rehabilitate the structure.  In this case, the requirement calls for you to spend more than $350,000 on rehabilitation charges.  Therefore, if you incurred rehabilitation expenditures of $320,000, the credit would not be available  and the cost recovery basis of the structure would be $670,000 (original cost of $350,000 plus  capital improvements of $320,000).  By incurring $380,000 on rehabilitation expenditures, a credit of $76,000 ($380,000  20%) would  be available. However, the cost recovery basis of the property would be reduced to the extent of  the available credit. Therefore, the cost recovery basis of the building would be $654,000 [$350,000  (original cost) plus $380,000 (capital improvements) less $76,000 (amount of credit)].  Because the rehabilitation tax credit is available if you choose the renovation plan costing $380,000  (but not the plan costing $320,000), you need to consider carefully the impact the credit will have  on your short-term cash flow position. Based solely on current cash flow due to the cost of the two  projects and the potential tax credit, you would benefit by selecting the more expensive renovation  project. Although this selection would cost $60,000 more than the less expensive one, you would  benefit from the $76,000 tax credit, for a net cash flow gain of $16,000. Of course other  considerations, including the reduced depreciation deduction associated with the credit, may impact  your decision, but the benefit of the tax credit is indisputable.  Should you need more information or need clarification of our conclusions, please feel free to  contact me.  Sincerely, Client Letter and Tax Memo Examples  TAX FILE MEMORANDUM  DATE:  FROM:  Name  SUBJECT: Mr. Paul Chaing    Impact of Rehabilitation Tax Credit  Paul Chaing has acquired a qualifying historic structure for $350,000 (excluding the cost of land)  with the intention of substantially rehabilitating the building. He has inquired as to the availability  of the rehabilitation tax credit and its impact on the structure’s cost recovery basis if he incurs either  $320,000 or $380,000 of qualifying rehabilitation expenditures.  To qualify for the rehabilitation credit, Paul must substantially rehabilitate the structure. The substantial  rehabilitation requirement provides that a taxpayer must incur rehabilitation expenditures that exceed  the greater of (1) the adjusted basis of the property before the rehabilitation ($350,000) or (2) $5,000.  Therefore, if Paul chose to incur only $320,000 on the rehabilitation, the amount would not be enough  to qualify as a “substantial rehabilitation” and no credit would be available. The depreciable basis of the  property would be the sum of its original cost plus the capital improvements, or $670,000 ($350,000 +  $320,000).  If Paul incurred $380,000 for the rehabilitation project, a substantial rehabilitation would result.  Therefore, the rehabilitation tax credit available to Paul would be $76,000 ($380,000  20%). The  depreciable basis of the property, which would be reduced by the full amount of the credit, would  be $654,000 [$350,000 (original cost) + $380,000 (capital improvements)

Vasudha · Accepted Answer

GTI to PDF Conversion -- d335bbdd-fcae-9391-cfd0-b7370e126659.pdf
MY COMPANY
,
123-456-7890
December 14, 2020
John Northway
1258 , DickinsonRoad
Grand Rapids, MI 49507
Dear John,
Enclosed is your 2019 Federal Individual Income Tax Return. The original
should be signed on page two.  No tax is payable with the filing of this
return.  You will receive a refund of $2,137.
Mail your Federal return on or before July 15, 2020 to:
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
FRESNO, CA 93888-0002
Enclosed is your 2019 Michigan Individual Income Tax Return.  The
original should be signed at the bottom of page two.  There is a balance
due of $1,452.  You now have the option of making payments
electronically using the Treasury's e-Payment system.  Payments can be
made using direct debit (eCheck) from a checking or savings account or a
credit or debit card.  Some fees may apply.  Visit www.michigan.gov/iit
for more information.
If not using the Treasury's e-Payment system, make your check payable to
"State of Michigan". Print the last four digits of your Social Security
number and "2019 Income Tax" on the front of your check and mail your
Michigan return on or before July 15, 2020 to:
MICHIGAN DEPARTMENT OF TREASURY
LANSING, MI 48929
Your 2020 estimated tax payment schedule is listed below.  Mail, if not
paying electronically, your payments to the address shown on your
estimated tax payment vouchers.
Due Date Federal Michigan
7/15/20 $ 970 $ 287
7/15/20 970 287
9/15/20 970 287
1/15/21 970 287
---------- ----------
$ 3,880 $ 1,148
Please be sure to call if you have any questions.
Sincerely,
Faith Lawrence
INCOME
Business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,416
Capital gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3,000
Total income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,416
ADJUSTMENTS TO INCOME
Deductible part of self-employment tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,432
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,432
Adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,984
ITEMIZED DEDUCTIONS
Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600
Total itemized deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600
TAX COMPUTATION
Standard deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,200
Larger of itemized or standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,200
Qualified business income deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,611
Taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,173
Tax before credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,057
CREDITS
Child tax credit & other dependent cr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Residential energy credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Total credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200
Tax after credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
OTHER TAXES
Self-employment tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,863
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,863
PAYMENTS
Additional child tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
Estimated tax payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Total payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000
REFUND OR AMOUNT DUE
Amount overpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,137
Amount refunded to you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,137
Amount you owe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
TAX RATES
Marginal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.0%
2019 Federal Income Tax Summary Page 1
John  Northway ***-**-****
FEDERAL ADJUSTED GROSS INCOME
Federal adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,984
Total additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,432
Total subtractions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
INCOME TAX CALCULATION
Income subject to tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,416
Exemption amount (prorated if PY/NR). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,400
Taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,016
Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,148
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,148
REFUND OR AMOUNT DUE
Interest from MI-2210 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Late Filing/Payment Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
Amount you owe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,452
TAX RATES
Marginal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.25%
2019 Michigan Income Tax Summary Page 1
John  Northway ***-**-****
Forms needed for this return
Federal:  1040, Sch 1, Sch 2, Sch 3, 1040-ES, Sch C, Sch D, Sch SE, 5695, 8867
8995
Michigan: MI-1040, MI-1040ES, Sch 1, MI-2210
2019 General Information Page 1
John  Northway ***-**-****
Tax Rates
Marginal
Federal 12.0%
Michigan 4.3%
Underpayment Penalty
Michigan 44.
Carryovers to 2020
Federal Carryovers
Long-Term Capital Loss 2,000.
Deductible State and Local Taxes 1,148.
Michigan Carryovers
Long-Term Capital Loss 2,000.
Estimates
Federal Estimates
Estimate Overpayment Balance
7/15/20 970. 0. 970.
7/15/20 970. 0. 970.
9/15/20 970. 0. 970.
1/15/21 970. 0. 970.
Total $ 3,880. $ 0. $ 3,880.
Michigan Estimates
Estimate Overpayment Balance
7/15/20 287. 0. 287.
7/15/20 287. 0. 287.
9/15/20 287. 0. 287.
1/15/21 287. 0. 287.
Total $ 1,148. $ 0. $ 1,148.
(99)Department of the Treasury ' Internal Revenue Service
Form 1040 2019 IRS Use Only ' Do not write or staple in this space.U.S. Individual Income Tax Return OMB No. 1545-0074
Filing Status Head of household (HOH) Qualifying widow(er) (QW)Single Married filing jointly Married filing separately (MFS)
Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is
one box.
a child but not your dependent. G
Your first name and middle initial Last name Your social security number
If joint return, spouse's first name and middle initial Last name Spouse's social security number
Home address (number and street). If you have a P.O. box, see instructions. Apt. no. 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 yourCity, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
tax or refund.
You Spouse
Foreign country name Foreign province/state/county Foreign postal code If more than four dependents,
see instructions and b here G
Standard Someone can claim: You as a dependent Your spouse as a dependent
Deduction
Spouse itemizes on a separate return or you were a dual-status alien
You:Age/Blindness Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind
(2) Social security (3) Relationship to you (4)  b if qualifies for (see instructions):Dependents (see instructions):
number
Last name Child tax credit Credit for other dependents(1) First name
Wages, salaries, tips, etc. Attach Form(s) W-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1
Taxable int. Att. Sch. B if reqd. . . . . . . . Tax-exempt interest. . . . . . . . . . . . . . 2a 2a b 2b
3a 3a b 3bOrdinary div. Att. Sch. B if reqd. . . . . . . Qualified dividends . . . . . . . . . . . . . . 
IRA distributions. . . . . . . . . . . . . 4a 4a Taxable amount . . . . . . . . . . . . . . . b 4b
c 4cPensions and annuities . . . . . . Taxable amount . . . . . . . . . . . . . . . 4dd
5a 5a Taxable amount . . . . . . . . . . . . . . . b 5bSocial security benefits . . . . . . . . . . . 
Standard 6 6Capital gain or (loss). Attach Schedule D if required. If not required, check here. . . . . . . . . . . . . . . . . . . . . . . G
Deduction for '
7a7a Other income from Schedule 1, line 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? Single or 
Married filing
Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income. . . . . . . . . . . . . . . . . . . . G 7bbseparately, $12,200
? Married filing 8a Adjustments to income from Schedule 1, line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a
jointly or Qualifying
widow(er), $24,400 Subtract line 8a from line 7b. This is your adjusted gross income . . . . . . . . . . . . . . . . . . . . . Gb 8b
? Head of 
household, $18,350 Standard deduction or itemized deductions (from Schedule A). . . . . . . . . . . . 9 9
? If you checked any 1010 Qualified business income deduction. Attach Form 8995 or Form 8995-A. . . . . . . . 
box under Standard
Deduction, see
11a 11aAdd lines 9 and 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . instructions.
Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0-. . . . . . . . . . . . . . . . . b 11b
BAA  For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019)
FDIA0112L   10/07/19
28,984.
12,200.
14,173.
1,650.
3,729.
2,611.
31,416.
John Northway ***-**-****
1258 , DickinsonRoad
X
Grand Rapids, MI 49507
14,811.
2,432.
34,416.
-3,000.
Form 1040 (2019) Page 2
Tax (see inst.) Check if any from Form(s): 8814112a
2 3 12a4972
12bb Add Schedule 2, line 3, and line 12a and enter the total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
13a13a Child tax credit or credit for other dependents . . . . . . . . . . . . . . . . . . 
13bAdd Schedule 3, line 7, and line 13a and enter the total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b G
Subtract line 13b from line 12b. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 14
Other taxes, including self-employment tax, from Schedule 2, line 10 . . . . . . . . . . . . . . . . . . . . 15 15
1616 Add lines 14 and 15. This is your total tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
17 17Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
18 Other payments and refundable credits:
? If you have a
qualifying child, Earned income credit (EIC). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18aa
attach Sch. EIC.
18bb Additional child tax credit. Attach Schedule 8812 . . . . . . . . . . . . . . 
? If you have
nontaxable combat 18cc American opportunity credit from Form 8863, line 8. . . . . . . . . . . . 
pay, see instructions. d 18dSchedule 3, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Add lines 18a through 18d. These are your total other payments e
18eand refundable credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
Add lines 17 and 18e. These are your total payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 19G
20 20If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid . . . . . . . . . . . . . . . . Refund
G21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here. . 21a
b cG GRouting number . . . . . . . . Type: Checking SavingsDirect deposit?
See instructions. dG Account number. . . . . . . . 
G22 Amount of line 20 you want applied to your 2020 estimated tax. . . . . . . . 22
23 23Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions. . . . . . . . . . . . . . . . . GAmount
You Owe 24 24Estimated tax penalty (see instructions). . . . . . . . . . . . . . . . . . . . 
Yes. Complete below.Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS ? See instructions.Third Party
Designee No
(Other than Designee's Phone Personal identification
G G Gname no. number (PIN)paid preparer)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, theySign
are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Here
Your signature Date Your occupation If the IRS sent you an Identity Protection
PIN, enter itJoint return?
here (see inst.)
See instructions. A Date Spouse's occupation If the IRS sent your spouse an IdentitySpouse's signature. If a joint return, both must sign.Keep a copy for Protection PIN, enter
your records. it here (see inst.)
Phone no. Email address
Date Check if:Preparer's name Preparer's signature PTIN
3rd Party DesigneePaid
Preparer Self-employedGFirm's name Phone no.
Use Only
G GFirm's address Firm's EIN
Form 1040 (2019)Go to www.irs.gov/Form1040 for instructions and the latest information.
FDIA0112L   02/21/20
John  Northway ***-**-****
1,057.
1,057.
4,000.
4,200.
0.
4,863.
4,863.
1,000.
6,000.
7,000.
7,000.
2,137.
2,137.
*********X
********************XXXX
X
X
123-456-7890
,
Faith Lawrence Faith Lawrence
My Company
OMB No. 1545-0074SCHEDULE 1
Additional Income and Adjustments to Income(Form 1040 or 1040-SR)
2019
A Attach to Form 1040 or 1040-SR.
Department of the Treasury Attachment
A Go to www.irs.gov/Form1040 for instructions and the latest information.Internal Revenue Service 01Sequence No.
Name(s) shown on Form 1040 or 1040-SR Your social security number
At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual
currency?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
Part I Additional Income
1Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a2a
b Date of original divorce or separation agreement (see instructions) G
3 Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Other gains or (losses). Attach Form 4797. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. . . . . . 5 5
6Farm income or (loss). Attach Schedule F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 7Unemployment compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
GOther income. List type and amount8
8
9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a . . . . . . . . . . . . . . . . 9
Part II Adjustments to Income
10 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Certain business expenses of reservists, performing artists, and fee-basis government officials.
11Attach Form 2106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Health savings account deduction. Attach Form 8889. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 12
Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . . . . . . . . . . . 13 13
Deductible part of self-employment tax. Attach Schedule SE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1414
15Self-employed SEP, SIMPLE, and qualified plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Self-employed health insurance deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1616
17 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18a18a Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
b Recipient's SSN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
c Date of original divorce or separation agreement (see instructions) G
19 19IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Student loan interest deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 20
21 Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040
or 1040-SR, line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
BAA  For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040 or 1040-SR) 2019
FDIA0103L   12/26/19
John  Northway ***-**-****
2,432.
2,432.
34,416.
34,416.
X
OMB No. 1545-0074SCHEDULE 2
Additional Taxes(Form 1040 or 1040-SR)
2019
A Attach to Form 1040 or 1040-SR.
Department of the Treasury Attachment
A Go to www.irs.gov/Form1040 for instructions and the latest information.Internal Revenue Service 02Sequence No.
Name(s) shown on Form 1040 or 1040-SR Your social security number
Part I Tax
1 Alternative minimum tax. Attach Form 6251. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
33 Add lines 1 and 2. Enter here and include on Form 1040 or 1040-SR, line 12b. . . . . . . . . . . . . . . . . . . . . . . . . . . 
Part II Other Taxes
44 Self-employment tax. Attach Schedule SE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
55 Unreported social security and Medicare tax from Form: a 4137 b 8919 . . . . . . . . . . . . . . . . . . . . . . . 
6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form
65329 if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
7a7a Household employment taxes. Attach Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
7bRepayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required . . . . . . . . . . . . . . . . b
Taxes from: a Form 8959 b Form 89608
8c Instructions; enter code(s)
99 Section 965 net tax liability installment from Form 965-A. . . . . . . . . . . . . . . . . . . . . 
10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR,
line 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
BAA  For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 2 (Form 1040 or 1040-SR) 2019
FDIA0104L   09/30/19
0.
0.
***-**-****John  Northway
4,863.
4,863.
OMB No. 1545-0074SCHEDULE 3
Additional Credits and Payments(Form 1040 or 1040-SR)
2019
A Attach to Form 1040 or 1040-SR.Department of the Treasury Attachment
A Go to www.irs.gov/Form1040 for instructions and the latest information.Internal Revenue Service 03Sequence No.
Your social security numberName(s) shown on Form 1040 or 1040-SR
Nonrefundable CreditsPart I
1 Foreign tax credit. Attach Form 1116 if required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Credit for child and dependent care expenses. Attach Form 2441. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Education credits from Form 8863, line 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Retirement savings contributions credit. Attach Form 8880. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Residential energy credits. Attach Form 5695 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Other credits from Form: a 3800 b 8801 c 6
7 Add lines 1 through 6. Enter here and include on Form 1040 or 1040-SR, line 13b. . . . . . . . . . . . . . . . . . . . . . . . 7
Other Payments and Refundable CreditsPart II
8 2019 estimated tax payments and amount applied from 2018 return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Net premium tax credit. Attach Form 8962. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9
Amount paid with request for extension to file (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 10
Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 11
Credit for federal tax on fuels. Attach Form 4136. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 12
13 Credits from Form: 13a 2439 b Reserved c 8885 d
14 Add lines 8 through 13. Enter here and on Form 1040 or 1040-SR, line 18d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
BAA  For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 3 (Form 1040 or 1040-SR) 2019
FDIA0105L   12/26/19
200.
200.
***-**-****John  Northway
6,000.
6,000.
OMB No. 1545-0074SCHEDULE C Profit or Loss From Business
(Sole Proprietorship)(Form 1040 or 1040-SR) 2019
G Go to www.irs.gov/ScheduleC for instructions and the latest information.Department of the Treasury Attachment
(99)Internal Revenue Service 09G Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No.
Name of proprietor Social security number (SSN)
Principal business or profession, including product or service (see instructions) Enter code from instructionsA B
G
Business name. If no separate business name, leave blank. Employer ID number (EIN) (see instr.)C D
E Business address (including suite or room no.) G
City, town or post office, state, and ZIP code
(1) (2) (3)Cash Accrual Other (specify) GF Accounting method:
Yes NoG Did you "materially participate" in the operation of this business during 2019? If "No," see instructions for limit on losses.
H If you started or acquired this business during 2019, check here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
Yes NoI Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions). . . . . . . . . . . . . . . . . . . . . 
Yes NoJ If "Yes," did you or will you file required Forms 1099?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
IncomePart I
1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you
1Gon Form W-2 and the "Statutory employee" box on that form was checked. . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2 2Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
3 3Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
4 4Cost of goods sold (from line 42). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Other income, including federal and state gasoline or fuel tax credit or refund
6(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7G
Part II Expenses. Enter expenses for business use of your home only on line 30.
8 8 18 18Advertising . . . . . . . . . . . . . . . . . . . . Office expense (see instructions). . . . . . . . 
9 Car and truck expenses 19 19Pension and profit-sharing plans . . . . . . . . 
9(see instructions) . . . . . . . . . . . . . . 
20 Rent or lease (see instructions):
10 10Commissions and fees . . . . . . . . . 
a 20aVehicles, machinery, and equipment. . . . . 
11 Contract labor
b 20bOther business property . . . . . . . . . . . . . . . . 11(see instructions) . . . . . . . . . . . . . . 
21 21Repairs and maintenance. . . . . . . . . . . . . . . 12 12Depletion. . . . . . . . .

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