|| Complete Chapters Questions and Problems Included
|| Tax Return Problems Solutions Included
|| Additional Tax Returns Solutions Included
, SOLUTIONS FOR
ADDITIONAL COMPREHENSIVE TAX RETURN PROBLEMS
, Solutions for Additional Comprehensive Tax Return Problems D-1
Comprehensive Problem 1
1040 U.S. Individual Income Tax Return 2024
Form
Department of the Treasury—Internal Revenue Service
OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
For the year Jan. 1–Dec. 31, 2024, or other tax year beginning , 2024, ending , 20 See separate instructions.
Your first name and middle initial Last name Your social security number
Noah Arc 434 11 3311
If joint return, spouse’s first name and middle initial Last name Spouse’s social security number
TREASURY/IRS
Joan Arc 456 87 5432
Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign
1265 W. Riverview Ave. Check here if you, or your
City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code spouse if filing jointly, want $3
to go to this fund. Checking a
Dayton OH 45402 box below will not change
Foreign country name Foreign province/state/county Foreign postal code your tax or refund.
AND OMB USE
You Spouse
Filing Status Single Head of household (HOH)
Check only x Married filing jointly (even if only one had income)
one box. Married filing separately (MFS) Qualifying surviving spouse (QSS)
If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child’s name if the
qualifying person is a child but not your dependent:
ONLY DRAFT
If treating a nonresident alien or dual-status alien spouse as a U.S. resident for the entire tax year, check the box and enter
their name (see instructions and attach statement if required):
Digital At any time during 2024, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell,
Assets exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Yes x No
July 8, 2024
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
Age/Blindness You: Were born before January 2, 1960 Are blind Spouse: Was born before January 2, 1960 Is blind
Dependents (see instructions): (2) Social security (3) Relationship (4) Check the box if qualifies for (see instructions):
(1) First name Last name number to you Child tax credit Credit for other dependents
If more
than four Shem Arc 598 01 2345 Son x
Rayder Arc 554 33 2411 Daughter x
DO NOT FILE
dependents,
see instructions
and check
here . .
Income 1a Total amount from Form(s) W-2, box 1 (see instructions) . . . . . . . . . . . . . 1a 33,100
b Household employee wages not reported on Form(s) W-2 . . . . . . . . . . . . . 1b
Attach Form(s)
W-2 here. Also c Tip income not reported on line 1a (see instructions) . . . . . . . . . . . . . . 1c
attach Forms d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) . . . . . . . . 1d
W-2G and
1099-R if tax e Taxable dependent care benefits from Form 2441, line 26 . . . . . . . . . . . . 1e
was withheld. f Employer-provided adoption benefits from Form 8839, line 29 . . . . . . . . . . . 1f
If you did not g Wages from Form 8919, line 6 . . . . . . . . . . . . . . . . . . . . . 1g
get a Form
W-2, see
h Other earned income (see instructions) . . . . . . . . . . . . . . . . . . 1h
instructions. i Nontaxable combat pay election (see instructions) . . . . . . . 1i
z Add lines 1a through 1h . . . . . . . . . . . . . . . . . . . . . . 1z 33,100
Attach Sch. B 2a Tax-exempt interest . . . 2a b Taxable interest . . . . . 2b
if required. 3a Qualified dividends . . . 3a 1,890 (a) b Ordinary dividends . . . . . 3b 2,090
4a IRA distributions . . . . 4a b Taxable amount . . . . . . 4b
Standard
Deduction for— 5a Pensions and annuities . . 5a b Taxable amount . . . . . . 5b
• Single or 6a Social security benefits . . 6a b Taxable amount . . . . . . 6b
Married filing
separately, c If you elect to use the lump-sum election method, check here (see instructions) . . . . .
$14,600
• Married filing
7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . 7 11,260
jointly or 8 Additional income from Schedule 1, line 10 . . . . . . . . . . . . . . . . . 8 39,327
Qualifying
surviving spouse, 9 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . . 9 85,777
$29,200
• Head of
10 Adjustments to income from Schedule 1, line 26 . . . . . . . . . . . . . . . 10 9,691
household, 11 Subtract line 10 from line 9. This is your adjusted gross income . . . . . . . . . . 11 76,086
$21,900
• If you checked
12 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . 12 29,200
any box under 13 Qualified business income deduction from Form 8995 or Form 8995-A . . . . . . . . . 13 6,842
36,042
Standard
Deduction, 14 Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . 14
see instructions.
15 Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income . . . . . 15 40,044
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2024)
(a) $310 + $1,200 + $380 from Indiana James brokerage statement.
, D-2 Solutions for Additional Comprehensive Tax Return Problems
Comprehensive Problem 1, cont.
Form 1040 (2024) Noah and Joan Arc 434-11-3311 Page 2
Tax and 16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 . . 16 2,821
Credits 17 Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . . . . . 17
18 Add lines 16 and 17 . . . . . . . . . . . . . . . . . . . . . . . . 18 2,821
19 Child tax credit or credit for other dependents from Schedule 8812 . . . . . . . . . . 19 2,191
20 Amount from Schedule 3, line 8 . . . . . . . . . . . . . . . . . . . . 20 630
21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . 21 2,821
0
TREASURY/IRS
22 Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . . . . . . . . 22
23 Other taxes, including self-employment tax, from Schedule 2, line 21 . . . . . . . . . 23 5,381
24 Add lines 22 and 23. This is your total tax . . . . . . . . . . . . . . . . . 24 5,381
Payments 25 Federal income tax withheld from:
a Form(s) W-2 . . . . . . . . . . . . . . . . . . 25a 5,341
b Form(s) 1099 . . . . . . . . . . . . . . . . . . 25b
AND OMB USE
c Other forms (see instructions) . . . . . . . . . . . . . 25c
d Add lines 25a through 25c . . . . . . . . . . . . . . . . . . . . . . 25d 5,341
If you have a 26 2024 estimated tax payments and amount applied from 2023 return . . . . . . . . . . 26 4,000
qualifying child, 27 Earned income credit (EIC) . . . . . . . . . . . . . . 27
attach Sch. EIC.
28 Additional child tax credit from Schedule 8812 . . . . . . . . 28 1,809
29 American opportunity credit from Form 8863, line 8 . . . . . . . 29
ONLY DRAFT
30 Reserved for future use . . . . . . . . . . . . . . . 30
31 Amount from Schedule 3, line 15 . . . . . . . . . . . . 31
32 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits . . 32 1,809
33 Add lines 25d, 26, and 32. These are your total payments . . . . . . . . . . . . 33 11,150
Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid . . 34 5,769
5,769
July 8, 2024
35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . . . 35a
Direct deposit? b Routing number c Type: Checking Savings
See instructions.
d Account number
36 Amount of line 34 you want applied to your 2025 estimated tax . . . 36
Amount 37 Subtract line 33 from line 24. This is the amount you owe.
You Owe For details on how to pay, go to www.irs.gov/Payments or see instructions . . . . . . . . 37
38 Estimated tax penalty (see instructions) . . . . . . . . . . 38
DO NOT FILE
Third Party Do you want to allow another person to discuss this return with the IRS? See
Designee instructions . . . . . . . . . . . . . . . . . . . . . Yes. Complete below. No
Designee’s Phone Personal identification
name no. number (PIN)
Sign 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, they 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 it here
Joint return?
Pet Store Owner (see inst.)
See instructions. Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation If the IRS sent your spouse an
Keep a copy for Identity Protection PIN, enter it here
your records. Firefighter (see inst.)
Phone no. Email address
Preparer’s name Preparer’s signature Date PTIN Check if:
Paid Self-employed
Preparer
Firm’s name Phone no.
Use Only
Firm’s address Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2024)
|| Tax Return Problems Solutions Included
|| Additional Tax Returns Solutions Included
, SOLUTIONS FOR
ADDITIONAL COMPREHENSIVE TAX RETURN PROBLEMS
, Solutions for Additional Comprehensive Tax Return Problems D-1
Comprehensive Problem 1
1040 U.S. Individual Income Tax Return 2024
Form
Department of the Treasury—Internal Revenue Service
OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
For the year Jan. 1–Dec. 31, 2024, or other tax year beginning , 2024, ending , 20 See separate instructions.
Your first name and middle initial Last name Your social security number
Noah Arc 434 11 3311
If joint return, spouse’s first name and middle initial Last name Spouse’s social security number
TREASURY/IRS
Joan Arc 456 87 5432
Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign
1265 W. Riverview Ave. Check here if you, or your
City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code spouse if filing jointly, want $3
to go to this fund. Checking a
Dayton OH 45402 box below will not change
Foreign country name Foreign province/state/county Foreign postal code your tax or refund.
AND OMB USE
You Spouse
Filing Status Single Head of household (HOH)
Check only x Married filing jointly (even if only one had income)
one box. Married filing separately (MFS) Qualifying surviving spouse (QSS)
If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child’s name if the
qualifying person is a child but not your dependent:
ONLY DRAFT
If treating a nonresident alien or dual-status alien spouse as a U.S. resident for the entire tax year, check the box and enter
their name (see instructions and attach statement if required):
Digital At any time during 2024, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell,
Assets exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Yes x No
July 8, 2024
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
Age/Blindness You: Were born before January 2, 1960 Are blind Spouse: Was born before January 2, 1960 Is blind
Dependents (see instructions): (2) Social security (3) Relationship (4) Check the box if qualifies for (see instructions):
(1) First name Last name number to you Child tax credit Credit for other dependents
If more
than four Shem Arc 598 01 2345 Son x
Rayder Arc 554 33 2411 Daughter x
DO NOT FILE
dependents,
see instructions
and check
here . .
Income 1a Total amount from Form(s) W-2, box 1 (see instructions) . . . . . . . . . . . . . 1a 33,100
b Household employee wages not reported on Form(s) W-2 . . . . . . . . . . . . . 1b
Attach Form(s)
W-2 here. Also c Tip income not reported on line 1a (see instructions) . . . . . . . . . . . . . . 1c
attach Forms d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) . . . . . . . . 1d
W-2G and
1099-R if tax e Taxable dependent care benefits from Form 2441, line 26 . . . . . . . . . . . . 1e
was withheld. f Employer-provided adoption benefits from Form 8839, line 29 . . . . . . . . . . . 1f
If you did not g Wages from Form 8919, line 6 . . . . . . . . . . . . . . . . . . . . . 1g
get a Form
W-2, see
h Other earned income (see instructions) . . . . . . . . . . . . . . . . . . 1h
instructions. i Nontaxable combat pay election (see instructions) . . . . . . . 1i
z Add lines 1a through 1h . . . . . . . . . . . . . . . . . . . . . . 1z 33,100
Attach Sch. B 2a Tax-exempt interest . . . 2a b Taxable interest . . . . . 2b
if required. 3a Qualified dividends . . . 3a 1,890 (a) b Ordinary dividends . . . . . 3b 2,090
4a IRA distributions . . . . 4a b Taxable amount . . . . . . 4b
Standard
Deduction for— 5a Pensions and annuities . . 5a b Taxable amount . . . . . . 5b
• Single or 6a Social security benefits . . 6a b Taxable amount . . . . . . 6b
Married filing
separately, c If you elect to use the lump-sum election method, check here (see instructions) . . . . .
$14,600
• Married filing
7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . 7 11,260
jointly or 8 Additional income from Schedule 1, line 10 . . . . . . . . . . . . . . . . . 8 39,327
Qualifying
surviving spouse, 9 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . . 9 85,777
$29,200
• Head of
10 Adjustments to income from Schedule 1, line 26 . . . . . . . . . . . . . . . 10 9,691
household, 11 Subtract line 10 from line 9. This is your adjusted gross income . . . . . . . . . . 11 76,086
$21,900
• If you checked
12 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . 12 29,200
any box under 13 Qualified business income deduction from Form 8995 or Form 8995-A . . . . . . . . . 13 6,842
36,042
Standard
Deduction, 14 Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . 14
see instructions.
15 Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income . . . . . 15 40,044
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2024)
(a) $310 + $1,200 + $380 from Indiana James brokerage statement.
, D-2 Solutions for Additional Comprehensive Tax Return Problems
Comprehensive Problem 1, cont.
Form 1040 (2024) Noah and Joan Arc 434-11-3311 Page 2
Tax and 16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 . . 16 2,821
Credits 17 Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . . . . . 17
18 Add lines 16 and 17 . . . . . . . . . . . . . . . . . . . . . . . . 18 2,821
19 Child tax credit or credit for other dependents from Schedule 8812 . . . . . . . . . . 19 2,191
20 Amount from Schedule 3, line 8 . . . . . . . . . . . . . . . . . . . . 20 630
21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . 21 2,821
0
TREASURY/IRS
22 Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . . . . . . . . 22
23 Other taxes, including self-employment tax, from Schedule 2, line 21 . . . . . . . . . 23 5,381
24 Add lines 22 and 23. This is your total tax . . . . . . . . . . . . . . . . . 24 5,381
Payments 25 Federal income tax withheld from:
a Form(s) W-2 . . . . . . . . . . . . . . . . . . 25a 5,341
b Form(s) 1099 . . . . . . . . . . . . . . . . . . 25b
AND OMB USE
c Other forms (see instructions) . . . . . . . . . . . . . 25c
d Add lines 25a through 25c . . . . . . . . . . . . . . . . . . . . . . 25d 5,341
If you have a 26 2024 estimated tax payments and amount applied from 2023 return . . . . . . . . . . 26 4,000
qualifying child, 27 Earned income credit (EIC) . . . . . . . . . . . . . . 27
attach Sch. EIC.
28 Additional child tax credit from Schedule 8812 . . . . . . . . 28 1,809
29 American opportunity credit from Form 8863, line 8 . . . . . . . 29
ONLY DRAFT
30 Reserved for future use . . . . . . . . . . . . . . . 30
31 Amount from Schedule 3, line 15 . . . . . . . . . . . . 31
32 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits . . 32 1,809
33 Add lines 25d, 26, and 32. These are your total payments . . . . . . . . . . . . 33 11,150
Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid . . 34 5,769
5,769
July 8, 2024
35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . . . 35a
Direct deposit? b Routing number c Type: Checking Savings
See instructions.
d Account number
36 Amount of line 34 you want applied to your 2025 estimated tax . . . 36
Amount 37 Subtract line 33 from line 24. This is the amount you owe.
You Owe For details on how to pay, go to www.irs.gov/Payments or see instructions . . . . . . . . 37
38 Estimated tax penalty (see instructions) . . . . . . . . . . 38
DO NOT FILE
Third Party Do you want to allow another person to discuss this return with the IRS? See
Designee instructions . . . . . . . . . . . . . . . . . . . . . Yes. Complete below. No
Designee’s Phone Personal identification
name no. number (PIN)
Sign 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, they 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 it here
Joint return?
Pet Store Owner (see inst.)
See instructions. Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation If the IRS sent your spouse an
Keep a copy for Identity Protection PIN, enter it here
your records. Firefighter (see inst.)
Phone no. Email address
Preparer’s name Preparer’s signature Date PTIN Check if:
Paid Self-employed
Preparer
Firm’s name Phone no.
Use Only
Firm’s address Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2024)
