For this assignment you will need to prepare a 2015 Form 1040 for Ollie O. Olson and Polly P. Payne. You should use the Drake software available through this class. If you have access to other tax preparation software and would like to use it instead, let me know.
You will need to send me the filing copy of your return in Adobe format. Pretend I am the IRS and send me just what is required. For example, e-file permission forms and any documents that state “keep for your records” should not be sent to the IRS. Also, for our purposes, do not send payment vouchers, estimated payment information, or any client correspondence. If you have any doubts as to what you are sending, send it to yourself first. Most of you have a personal email account as well as a Bellevue email account. If you email the return to yourself and are unable to open it, I won’t be able to either.
Be certain to include your name in the file name for the file you submit. In addition, in place of the taxpayer’s occupation, please enter your name. If you want credit for this assignment, I will need to know which return is yours. In other words, if you name does not appear in both places, your score will be zero.
Ollie O. Olson and Polly P. Payne, each age 42, married on September 7, 2013. Ollie and Polly will file a joint return for 2015. Ollie’s SS # is 111-11-1111. Polly’s SS# is 123-45-6789, and she adopted “Olson” as her married name. They live at 122 Limestone Drive, Atlanta, GA 30304.
Ollie was divorced from Sally Olson in March 2013. Under the divorce agreement, Ollie is to pay Sally $1,250 per month for the next 10 years or until Sally’s death, whichever occurs first. Ollie pays Sally $15,000 in 2015. In addition, in January 2015, Ollie pays Sally $50,000, which is designated as being for her share of the marital property. Also, Ollie is responsible for all the prior years’ income taxes. Sally’s Social Security number is 123-45-6788.
Ollie’s salary for 2015 is $140,000, and his employer, Strawberry, Inc. (Federal I.D. No. 98-7654321), provides him with group term life insurance equal to twice his annual salary. His employer withheld $25,000 for Federal income taxes and $7,900 for state income taxes. The proper amounts were withheld for FICA taxes.
Polly recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111) as a public defender. She receives a salary of $42,000 in 2015. Her employer withheld $7,600 for Federal income taxes and $2,500 for state income taxes. The proper amounts were withheld for FICA taxes.
Polly has $2,500 in qualified dividends on Orange Corporation stock she inherited. Ollie and Polly receive a $1,900 refund on their 2014 state income taxes. They itemized deductions on their 2014 Federal income tax return (total of $18,000). Ollie and Polly pay $4,500 interest and $1,450 property taxes on their personal residence in 2015. They have a total of $300 ad valorem tax listed on their automobile registrations for the year. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2015 and do not want to contribute to the Presidential Election Campaign.