Tax Return Worksheet

Based on the information given in the document, you will need to complete the 2022 version of Form 1040 and any required schedules.

Tax Return 2
ACT 4494
FA 2023
Name: ____________________________________________________________________________
Harvey and Donna’s taxable income from this return is: $ __________________________
I worked on this return with:
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________
I worked for approximately _________________________hrs/min on this return.
Harvey greatly appreciates the tax estimate you prepared for him a few days ago. He has big news though (he got
married!!!), which will require some changes to the original return you did for him. Please read the new
information and make whatever changes are required to update the 2022 Form 1040 you have already prepared.
Harvey R. Specter, born April 3, 1983, is a married taxpayer who works at the law firm Pearson Hardman. He
lives at 901 20 Stewart Street, New York, New York (in the penthouse!!!). His Social Security number is 933-669999. Harvey earned $90,000 in wages and had $10,439 withheld in federal income taxes; both items were
reported to him on his W-2. He also earned $1,000 in bank interest from Goldman Sachs (at 200 West St.) on his
savings account. This amount was reported to him on his December 2022 bank statement.
Harvey married his long time, secret love, Donna Paulsen, on December 31, 2022 at 11:45pm. They would like to
file a joint return for 2022. Harvey and Donna will live in Harvey’s apartment. Donna has not changed her last
name with the Social Security Administration. Donna’s Social Security number is 944-55-8888.
Harvey provides support for a few people. He has a daughter, named Lily after his mother, with his former flame
Dana Scott. Even though he didn’t love Dana, he married her when she became pregnant so that his daughter
would not be born out of wedlock. The two were divorced soon after Lily’s birth on August 23, 2015. Their
divorce was finalized on January 1, 2016. Lily was born in New York, but currently lives in the United Kingdom
with her mother who is her custodial parent. Harvey provides more than half of Lily’s support. Harvey and Dana
are still friends and they do not have a formal agreement as to which of them claim Lily as a dependent. He also
provides support to his younger brother Marcus. Marcus lives in Boston. Harvey provides approximately one half
of Marcus’ support, which includes bailing him out of gambling debts.
Donna earned wages of $70,000 as an administrative assistant at Pearson Hardman. She had $7,384 withheld for
federal income taxes. Both items were reported to her on her W-2, along with tips of $500 given to her by one of
the firm’s clients. Since Donna’s bank does not pay interest on savings or checking accounts, she has moved her
money over to Harvey’s account. While Donna did not earn any interest on her money in the bank, her financial
news for the year wasn’t all bad. Two of her stock investments paid dividends. She received total dividends of
$286.
Donna and Harvey had a busy year. Donna had to obtain a loan of $20,000 to pay off her credit cards; Harvey
refused to pay them for her. She started out with $20,100 of debt but $5,000 of her credit card debt was forgiven
by the credit card company. She received a 1099-C from the credit card company for that amount. She is so glad
that her debt is almost clear!
Harvey found a black cloth bag full of cash in the elevator in their apartment building. He took it home and
counted it and discovered there was $8,000 in the bag! Since Harvey believed the cash likely belonged to a
criminal, he decided not to turn it in to the cops, and kept it instead.
Harvey’s father Gordon died in 2022. His insurance policy named Harvey and Marcus as beneficiaries. Each of
them received $2,000,000 from the policy. Harvey also received $50,000 in cash from his father’s estate, in
addition to the life insurance benefit; Harvey promptly put all of his inheritance into the bank.
Harvey and Marcus went on a few gambling trips during which Harvey won $11,523 dollars at the poker tables.
They went to the Turning Stone Resort Casino, a luxury establishment in central New York. Unfortunately
Marcus lost each time they went.
Since Harvey was uncertain of the amount of taxes he and Donna would owe, he made an estimated tax payment
of $6,000. They would like any refund they may receive to be deposited into their checking account. Their
account number is 321456987. They cannot remember the routing number for the bank. They would like for you,
their professional tax preparer and CPA, to deal with the IRS if needed with regards to their 2022 tax return. If
they owe money, they will send in a check to the IRS.
Please prepare Harvey and Donna’s 2022 Form 1040 and any required schedules.
The assignment should be stapled and assembled in the correct IRS order, with the attached cover sheet on the
front. Please include the names of everyone you worked with to complete the return. This assignment is due on
10/10 at 2:00pm.
All tax return assignments are to be turned in on paper with handwritten tax forms. Workpapers may be prepared
either by hand or by using Excel or Word, but the return forms should be completed by hand. Any electronic
(Word or Excel) file used to help you prepare the return should be turned in on paper with the return and
electronically through Canvas. Only the files you use to show me your work (your workpapers) are required to be
uploaded. While this can be a group assignment, each person is required to turn in their own tax return and
workpapers. If you use Excel to complete your workpapers, you MAY NOT copy another student’s file.
I would highly recommend using the Form 1040 instructions to help with the forms if you have questions about
what goes on what line. I expect that while completing this return you will need to perform some research. You
may even need to go outside of your textbook. If you do so, please remember to cite your sources. Tax returns
also require some critical thinking. While facts have been given to you, you may need to interpret those facts or
make assumptions. Please document any assumptions you make to complete the return. If you feel that you are
missing required information, please let me know and I will ask the client for you.
Form
1040 U.S. Individual Income Tax Return 2022
Filing Status
Check only
one box.
Department of the Treasury—Internal Revenue Service
Single
Married filing jointly
OMB No. 1545-0074
Married filing separately (MFS)
IRS Use Only—Do not write or staple in this space.
Head of household (HOH)
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:
✔
Your first name and middle initial
Last name
Your social security number
Harvey R
pector
9 3 3 6 6 9 9 9 9
If joint return, spouse’s first name and middle initial
Last name
Spouse’s social security number
Donna
Paulsen
9 4 4 5 5 8 8 8 8
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
ZIP code
to go to this fund. Checking a
10001
box below will not change
Foreign postal code your tax or refund.
901 20 Stewart Street
PH
City, town, or post office. If you have a foreign address, also complete spaces below.
State
New York
New York
Foreign country name
Digital
Assets
Standard
Deduction
Foreign province/state/county
At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell,
exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)
Were born before January 2, 1958
(1) First name
If more
Lily Specter
than four
dependents,
see instructions
and check
here . .
If you did not
get a Form
W-2, see
instructions.
Attach Sch. B
if required.
Standard
Deduction for—
• Single or
Married filing
separately,
$12,950
• Married filing
jointly or
Qualifying
surviving spouse,
$25,900
• Head of
household,
$19,400
• If you checked
any box under
Standard
Deduction,
see instructions.
Spouse:
Are blind
Dependents (see instructions):
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Spouse
Yes
No
✔ You as a dependent
✔ Your spouse as a dependent
Someone can claim:
Spouse itemizes on a separate return or you were a dual-status alien
Age/Blindness You:
Income
You
(2) Social security
number
Last name
Was born before January 2, 1958
Is blind
(4) Check the box if qualifies for (see instructions):
(3) Relationship
to you
Child tax credit
Daughter
Credit for other dependents
✔
160,000
1a
b
c
Total amount from Form(s) W-2, box 1 (see instructions) .
Household employee wages not reported on Form(s) W-2 .
Tip income not reported on line 1a (see instructions) . .
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1a
1b
1c
d
e
f
Medicaid waiver payments not reported on Form(s) W-2 (see instructions) .
Taxable dependent care benefits from Form 2441, line 26
. . . . .
Employer-provided adoption benefits from Form 8839, line 29
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1d
1e
1f
g
h
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Wages from Form 8919, line 6 . . . . . . .
Other earned income (see instructions) . . . .
Nontaxable combat pay election (see instructions) .
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1i
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1g
1h
24,523
z
2a
3a
Add lines 1a through 1h
Tax-exempt interest . .
Qualified dividends . .
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b Taxable interest
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b Ordinary dividends .
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1z
2b
3b
185,023
1000
286
4a
5a
6a
IRA distributions . . .
Pensions and annuities .
Social security benefits .
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b Taxable amount .
b Taxable amount .
b Taxable amount .
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4b
5b
6b
c
7
8
If you elect to use the lump-sum election method, check here (see instructions)
Capital gain or (loss). Attach Schedule D if required. If not required, check here
Other income from Schedule 1, line 10 . . . . . . . . . . . .
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7
8
9
10
11
Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income .
Adjustments to income from Schedule 1, line 26
. . . . . .
Subtract line 10 from line 9. This is your adjusted gross income
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9
10
11
186,309
12
13
14
15
Standard deduction or itemized deductions (from Schedule A)
. . . . .
Qualified business income deduction from Form 8995 or Form 8995-A . . . .
Add lines 12 and 13 . . . . . . . . . . . . . . . . . . .
Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income
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12
13
14
25,900
15
160,409
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2a
3a
4a
5a
6a
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For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
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Cat. No. 11320B
500
186,309
Form 1040 (2022)
Page 2
Form 1040 (2022)
Tax and
Credits
30,515
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16
17
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18
19
20
30,515
2000
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21
22
23
2000
28515
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24
28515
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25d
17,823
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3618
26
6,000
Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits
Add lines 25d, 26, and 32. These are your total payments
. . . . . . . . . .
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.
3,618
27,441
If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid
.
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32
33
34
16
17
Tax (see instructions). Check if any from Form(s): 1
8814
Amount from Schedule 2, line 3
. . . . . . . .
.
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18
19
20
Add lines 16 and 17 . . . . . . . . . . . . . . .
Child tax credit or credit for other dependents from Schedule 8812 .
Amount from Schedule 3, line 8
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21
22
23
Add lines 19 and 20 . . . . . . . . . . . . . . .
Subtract line 21 from line 18. If zero or less, enter -0- . . . . .
Other taxes, including self-employment tax, from Schedule 2, line 21
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24
25
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a
Add lines 22 and 23. This is your total tax
Federal income tax withheld from:
Form(s) W-2 . . . . . . . . .
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25a
b
c
d
Form(s) 1099 . . . . . .
Other forms (see instructions) .
Add lines 25a through 25c . .
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25b
25c
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26
27
28
2022 estimated tax payments and amount applied from 2021 return .
Earned income credit (EIC) . . . . . . . . . . . . .
Additional child tax credit from Schedule 8812
. . . . . . .
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29
30
31
American opportunity credit from Form 8863, line 8 .
Reserved for future use . . . . . . . . .
Amount from Schedule 3, line 15 . . . . . .
.
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32
33
Refund
34
35a
Direct deposit?
b
See instructions.
d
36
Amount of line 34 you want refunded to you. If Form 8888 is attached, check here .
Routing number
c Type:
Checking
Account number
Amount of line 34 you want applied to your 2023 estimated tax . . .
36
Amount
You Owe
37
Subtract line 33 from line 24. This is the amount you owe.
For details on how to pay, go to www.irs.gov/Payments or see instructions .
.
Estimated tax penalty (see instructions)
38
Payments
If you have a
qualifying child,
attach Sch. EIC.
38
Third Party
Designee
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Joint return?
See instructions.
Keep a copy for
your records.
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17,823
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27
28
29
30
31
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Phone
no.
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Savings
35a
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37
.
Yes. Complete below.
1,074
✔
No
Personal identification
number (PIN)
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.
Your signature
Date
Your occupation
Law Firm Employee
Spouse’s signature. If a joint return, both must sign.
Date
Spouse’s occupation
Ass. Administrator
Phone no.
Paid
Preparer
Use Only
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4972 3
. . . .
Do you want to allow another person to discuss this return with the IRS? See
instructions
. . . . . . . . . . . . . . . . . . . . .
Designee’s
name
Sign
Here
.
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.
.
2
Preparer’s name
If the IRS sent you an Identity
Protection PIN, enter it here
(see inst.)
If the IRS sent your spouse an
Identity Protection PIN, enter it here
(see inst.)
Email address
Preparer’s signature
Date
PTIN
Check if:
Self-employed
Firm’s name
Phone no.
Firm’s address
Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information.
Form 1040 (2022)
Tax Return 2
ACT 4494
FA 2023
Name: ____________________________________________________________________________
Harvey and Donna’s taxable income from this return is: $160,409
I worked on this return with:
1.___________________________________________________________________________________
2.___________________________________________________________________________________
3.___________________________________________________________________________________
4.___________________________________________________________________________________
5.___________________________________________________________________________________
6.___________________________________________________________________________________
I worked for approximately 27 hrs/min on this return.
KEY ASSUMPTIONS MADE
The daughter Lily Specter, contributed to Earned income credit (EIC) of $ 3,618.
1. Amount earned by Harvey as a result of collected money, and gambling were reported as part of
other earned incomes for tax purposes
3232
VOID
CORRECTED
PAYER’S name, street address, city or town, province or state, country,
and ZIP or foreign postal code
Turning Stone Resort Casino
New ork
1 Reportable winnings
$
2 Date won
11523
3 Type of wager
4 Federal income tax withheld
$
PAYER’S federal identification number
PAYER’S telephone number
Certain
Gambling
Winnings
6 Race
(Rev. January 2021)
7 Winnings from identical wagers
8 Cashier
For calendar year
20
$
11 First identification
12 Second identification
Harvey R Specter
13 State/Payer’s state identification no. 14 State winnings
Street address (including apt. no.)
Form W-2G
5 Transaction
9 Winner’s taxpayer identification no. 10 Window
WINNER’S name
OMB No. 1545-0238
901 20 Stewart Street PH
For Privacy Act
and Paperwork
Reduction Act
Notice, see the
current General
Instructions for
Certain Information
Returns.
$
City or town, province or state, country, and ZIP or foreign postal code
15 State income tax withheld
16 Local winnings
$
$
17 Local income tax withheld
18 Name of locality
File with Form 1096
New York
Copy A
For Internal Revenue
Service Center
$
Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished
correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments.
Signature ▶
Form W-2G (Rev. 1-2021)
Date ▶
Cat. No. 10138V
www.irs.gov/FormW2G
Department of the Treasury – Internal Revenue Service
Do Not Cut or Separate Forms on This Page – Do Not Cut or Separate Forms on This Page
VOID
CORRECTED
PAYER’S name, street address, city or town, province or state, country,
and ZIP or foreign postal code
1 Reportable winnings
2 Date won
$
3 Type of wager
4 Federal income tax withheld
$
PAYER’S federal identification number
PAYER’S telephone number
OMB No. 1545-0238
Form W-2G
Certain
Gambling
Winnings
5 Transaction
6 Race
(Rev. January 2021)
7 Winnings from identical wagers
8 Cashier
For calendar year
20
$
9 Winner’s taxpayer identification no. 10 Window
WINNER’S name
11 First identification
12 Second identification
Street address (including apt. no.)
13 State/Payer’s state identification no. 14 State winnings
City or town, province or state, country, and ZIP or foreign postal code
15 State income tax withheld
Copy 1
$
For State, City,
or Local Tax
Department
16 Local winnings
$
$
17 Local income tax withheld
18 Name of locality
$
Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished
correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments.
Signature ▶
Form W-2G (Rev. 1-2021)
Date ▶
www.irs.gov/FormW2G
Department of the Treasury – Internal Revenue Service
CORRECTED (if checked)
PAYER’S name, street address, city or town, province or state, country,
and ZIP or foreign postal code
1 Reportable winnings
2 Date won
$
3 Type of wager
4 Federal income tax withheld
$
PAYER’S federal identification number
PAYER’S telephone number
OMB No. 1545-0238
Form W-2G
Certain
Gambling
Winnings
5 Transaction
6 Race
(Rev. January 2021)
7 Winnings from identical wagers
8 Cashier
For calendar year
20
$
9 Winner’s taxpayer identification no. 10 Window
WINNER’S name
11 First identification
12 Second identification
Street address (including apt. no.)
13 State/Payer’s state identification no. 14 State winnings
$
City or town, province or state, country, and ZIP or foreign postal code
15 State income tax withheld
16 Local winnings
$
$
17 Local income tax withheld
18 Name of locality
$
This information
is being furnished
to the Internal
Revenue Service.
Copy B
Report this income
on your federal tax
return. If this form
shows federal
income tax
withheld in box 4,
attach this copy
to your return.
Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished
correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments.
Signature ▶
Form W-2G (Rev. 1-2021)
Date ▶
www.irs.gov/FormW2G
Department of the Treasury – Internal Revenue Service
CORRECTED (if checked)
PAYER’S name, street address, city or town, province or state, country,
and ZIP or foreign postal code
1 Reportable winnings
2 Date won
$
3 Type of wager
4 Federal income tax withheld
$
PAYER’S federal identification number
PAYER’S telephone number
OMB No. 1545-0238
Form W-2G
Certain
Gambling
Winnings
5 Transaction
6 Race
(Rev. January 2021)
7 Winnings from identical wagers
8 Cashier
For calendar year
20
$
9 Winner’s taxpayer identification no. 10 Window
WINNER’S name
11 First identification
12 Second identification
Street address (including apt. no.)
13 State/Payer’s state identification no. 14 State winnings
City or town, province or state, country, and ZIP or foreign postal code
15 State income tax withheld
$
16 Local winnings
$
$
17 Local income tax withheld
18 Name of locality
This is important tax
information and is
being furnished to
the Internal Revenue
Service. If you are
required to file a
return, a negligence
penalty or other
sanction may be
imposed on you if
this income is
taxable and the
IRS determines
that it has not
been reported.
Copy C
For Winner’s Records
$
Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished
correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments.
Signature ▶
Form W-2G (Rev. 1-2021)
Date ▶
www.irs.gov/FormW2G
Department of the Treasury – Internal Revenue Service
Instructions to Winner
Box 1. The payer must furnish a Form W-2G to you if you
receive:
1. $1,200 or more in gambling winnings from bingo or
slot machines;
2. $1,500 or more in winnings (reduced by the wager)
from keno;
3. More than $5,000 in winnings (reduced by the wager
or buy-in) from a poker tournament;
4. $600 or more in gambling winnings (except winnings
from bingo, keno, slot machines, and poker tournaments)
and the payout is at least 300 times the amount of the
wager; or
5. Any other gambling winnings subject to federal
income tax withholding.
Generally, report all gambling winnings on the “Other
income” line of Schedule 1 (Form 1040). You can deduct
gambling losses as an itemized deduction, but you cannot
deduct more than your winnings. Keep an accurate record
of your winnings and losses, and be able to prove those
amounts with receipts, tickets, statements, or similar items
that you have saved. For additional information, see Pub.
529, Miscellaneous Deductions; and Pub. 525, Taxable
and Nontaxable Income.
Box 4. Any federal income tax withheld on these winnings
is shown in this box. Federal income tax must be withheld
on certain winnings less the wager.
Certain winnings that are not subject to regular gambling
withholding may be subject to backup withholding if you
did not provide your federal identification number to the
payer.
Include the amount shown in box 4 on your Form 1040
or 1040-SR as federal income tax withheld. See Pub. 505,
Tax Withholding and Estimated Tax, for additional
information.
Signature. You must sign Form W-2G if you are the only
person entitled to the winnings and the winnings are
subject to regular gambling withholding. Return the signed
form to the payer, who will give you your copies.
Other winners. Prepare Form 5754, Statement by Person(s)
Receiving Gambling Winnings, if another person is entitled
to any part of these winnings. Give Form 5754 to the payer,
who will use Form 5754 to prepare Form W-2G for each
person listed as a winner.
Future developments. For the latest information about
developments related to Form W-2G and its instructions,
such as legislation enacted after they were published, go
to www.irs.gov/FormW2G.
CORRECTED (if checked)
PAYER’S name, street address, city or town, province or state, country,
and ZIP or foreign postal code
1 Reportable winnings
2 Date won
$
3 Type of wager
4 Federal income tax withheld
$
PAYER’S federal identification number
PAYER’S telephone number
OMB No. 1545-0238
Form W-2G
Certain
Gambling
Winnings
5 Transaction
6 Race
(Rev. January 2021)
7 Winnings from identical wagers
8 Cashier
For calendar year
20
$
9 Winner’s taxpayer identification no. 10 Window
11 First identification
WINNER’S name
12 Second identification
Street address (including apt. no.)
13 State/Payer’s state identification no. 14 State winnings
City or town, province or state, country, and ZIP or foreign postal code
15 State income tax withheld
$
16 Local winnings
$
$
17 Local income tax withheld
18 Name of locality
Copy 2
Attach this copy
to your state,
city, or
local income
tax return,
if required.
$
Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished
correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments.
Signature ▶
Form W-2G (Rev. 1-2021)
Date ▶
www.irs.gov/FormW2G
Department of the Treasury – Internal Revenue Service
VOID
CORRECTED
PAYER’S name, street address, city or town, province or state, country,
and ZIP or foreign postal code
1 Reportable winnings
2 Date won
$
3 Type of wager
4 Federal income tax withheld
$
PAYER’S federal identification number
PAYER’S telephone number
OMB No. 1545-0238
Form W-2G
Certain
Gambling
Winnings
5 Transaction
6 Race
(Rev. January 2021)
7 Winnings from identical wagers
8 Cashier
For calendar year
20
$
9 Winner’s taxpayer identification no. 10 Window
WINNER’S name
11 First identification
12 Second identification
Street address (including apt. no.)
13 State/Payer’s state identification no. 14 State winnings
City or town, province or state, country, and ZIP or foreign postal code
15 State income tax withheld
$
For Privacy Act
and Paperwork
Reduction Act
Notice, see the
current General
Instructions for
Certain Information
Returns.
16 Local winnings
$
$
17 Local income tax withheld
18 Name of locality
Copy D
For Payer
$
Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished
correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments.
Signature ▶
Form W-2G (Rev. 1-2021)
Date ▶
www.irs.gov/FormW2G
Department of the Treasury – Internal Revenue Service
Instructions for Payer
To complete Form W-2G, use:
• The current General Instructions for Certain Information
Returns, and
• The current Instructions for Forms W-2G and 5754.
To order these instructions and additional forms, go to
www.irs.gov/FormsPubs.
Due dates. For filing and furnishing instructions, including
due dates, and to request filing or furnishing extensions,
see the current General Instructions for Certain Information
Returns.
To file electronically, you must have software that
generates a file according to the specifications in Pub. 1220.
Withholding. You may be required to withhold federal
income tax from cash or noncash gambling winnings. See
the current Instructions for Forms W-2G and 5754 for the
rates.
Foreign winners. Use Form 1042-S, Foreign Person’s U.S.
Source Income Subject to Withholding, to report gambling
winnings paid to nonresident aliens and foreign
corporations. See the Instructions for Form 1042-S. Also,
see Pub. 515, Withholding of Tax on Nonresident Aliens
and Foreign Entities.
Form 5754. If the person receiving the winnings is not the
actual winner or is a member of a group of winners, see the
instructions for Form 5754, Statement by Person(s)
Receiving Gambling Winnings, in the current Instructions
for Forms W-2G and 5754.
Need help? If you have questions about reporting on Form
W-2G, call the information reporting customer service site
toll free at 866-455-7438 or 304-263-8700 (not toll free). If
you are deaf, hard of hearing, or have a speech disability
and have access to TTY/TDD equipment, you can call
304-579-4827 (not toll free).
Future developments. For the latest information about
developments related to Form W-2G and its instructions,
such as legislation enacted after they were published, go
to www.irs.gov/FormW2G.
Earned Income Credit
SCHEDULE EIC
(Form 1040)
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0074
Qualifying Child Information
2022
Complete and attach to Form 1040 or 1040-SR only if you have a qualifying child.
Go to www.irs.gov/ScheduleEIC for the latest information.
Attachment
Sequence No. 43
Your social security number
Name(s) shown on return
Harvey Specter
933669999
If you are separated from your spouse, filing a separate return, and meet the requirements to claim the EIC (see instructions), check here
Before you begin:
!
▲
CAUTION
• See the instructions for Form 1040, line 27, to make sure that (a) you can take the EIC, and (b) you have a
qualifying child.
• Be sure the child’s name on line 1 and social security number (SSN) on line 2 agree with the child’s social
security card. Otherwise, at the time we process your return, we may reduce your EIC. If the name or SSN on
the child’s social security card is not correct, call the Social Security Administration at 800-772-1213.
• If you have a child who meets the conditions to be your qualifying child for purposes of claiming the EIC, but that
child doesn’t have an SSN as defined in the instructions for Form 1040, line 27, see the instructions.
• You can’t claim the EIC for a child who didn’t live with you for more than half of the year.
• If your child doesn’t have an SSN as defined in the instructions for Form 1040, line 27, see the instructions.
• If you take the EIC even though you are not eligible, you may not be allowed to take the credit for up to 10 years. See the instructions for details.
• It will take us longer to process your return and issue your refund if you do not fill in all lines that apply for each qualifying child.
Qualifying Child Information
1 Child’s name
If you have more than three qualifying
children, you have to list only three to get
the maximum credit.
Child 1
First name
Child 2
Child 3
Last name
First name
Last name
First name
Last name
1
Year
Year
If born after 2003 and the child is
younger than you (or your spouse,
if filing jointly), skip lines 4a and
4b; go to line 5.
If born after 2003 and the child is
younger than you (or your spouse,
if filing jointly), skip lines 4a and
4b; go to line 5.
Lily Specter
2 Child’s SSN
The child must have an SSN as defined in
the instructions for Form 1040, line 27,
unless the child was born and died in 2022
or you are claiming the self-only EIC (see
instructions). If your child was born and
died in 2022 and did not have an SSN,
enter “Died” on this line and attach a copy
of the child’s birth certificate, death
certificate, or hospital medical records
showing a live birth.
3 Child’s year of birth
2
Year
0
5
If born after 2003 and the child is
younger than you (or your spouse,
if filing jointly), skip lines 4a and
4b; go to line 5.
4a Was the child under age 24 at the end of
2022, a student, and younger than you (or
your spouse, if filing jointly)?
b Was the child permanently and totally
disabled during any part of 2022?
✔ Yes.
No.
Go to
line 5.
Go to line 4b.
Yes.
No.
Go to
line 5.
The child is not a
qualifying child.
Yes.
Go to
line 5.
No.
Go to line 4b.
Yes.
Go to
line 5.
No.
The child is not a
qualifying child.
Yes.
Go to
line 5.
Yes.
Go to
line 5.
No.
Go to line 4b.
No.
The child is not a
qualifying child.
5 Child’s relationship to you
(for example, son, daughter, grandchild,
niece, nephew, eligible foster child, etc.)
Daughter
6 Number of months child lived
with you in the United States
during 2022
• If the child lived with you for more than
half of 2022 but less than 7 months,
enter “7.”
• If the child was born or died in 2022 and
your home was the child’s home for more
than half the time he or she was alive
during 2022, enter “12.”
0
months
Do not enter more than 12
months.
For Paperwork Reduction Act Notice, see your tax return instructions.
months
Do not enter more than 12
months.
Cat. No. 13339M
months
Do not enter more than 12
months.
Schedule EIC (Form 1040) 2022
Page 2
Schedule EIC (Form 1040) 2022
Purpose of Schedule
After you have figured your earned income credit (EIC), use
Schedule EIC to give the IRS information about your qualifying
child(ren). See the instructions for Form 1040, line 27, for
information on who may be a qualifying child.
To figure the amount of your credit or to have the IRS figure it
for you, see the instructions for Form 1040, line 27.
Special rule for separated spouses. You can claim the EIC if you
are married, not filing a joint return, had a qualifying child who
lived with you for more than half of 2022, and either of the
following applies.
• You lived apart from your spouse for the last 6 months of 2022, or
• You are legally separated according to your state law under a
written separation agreement or a decree of separate maintenance
and you didn’t live in the same household as your spouse at the end
of 2022.
If you meet these requirements, check the box at the top of
Schedule EIC.
Qualifying child doesn’t have an SSN. If you have a child who
meets the conditions to be your qualifying child for purposes of
claiming the EIC, but that child doesn’t have an SSN as defined in
the instructions for Form 1040, line 27, and you are otherwise
eligible, you can claim the self-only EIC. To claim the self-only
EIC with a qualifying child, complete and attach Schedule EIC to
your Form 1040 or 1040-SR. Complete line 1 and lines 2 through 6
for Child 1. If Child 1 has an ITIN, an ATIN, or an SSN that is not
considered a valid SSN as defined in the instructions for Form
1040, line 27, enter it on line 2. Otherwise, leave line 2 blank.
Taking the EIC when not eligible. If you take the EIC even
though you are not eligible and it is determined that your error is
due to reckless or intentional disregard of the EIC rules, you will
not be allowed to take the credit for 2 years even if you are
otherwise eligible to do so. If you fraudulently take the EIC, you
will not be allowed to take the credit for 10 years. You may also
have to pay penalties.
Future developments. For the latest information about
developments related to Schedule EIC (Form 1040) and its
instructions, such as legislation enacted after they were published,
go to www.irs.gov/ScheduleEIC.
Qualifying Child
A qualifying child for the EIC is a child who is your…
Son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or
a descendant of any of them (for example, your grandchild, niece, or nephew)
AND
▼
was…
Under age 19 at the end of 2022 and younger than you (or your spouse, if filing jointly)
or
Under age 24 at the end of 2022, a student, and younger than you (or your spouse, if filing jointly)
or
Any age and permanently and totally disabled
AND
▼
Who is not filing a joint return for 2022
or is filing a joint return for 2022 only to claim
a refund of withheld income tax or estimated tax paid
AND
▼
Who lived with you in the United States for more than half of 2022.
!
▲
CAUTION
You can’t claim the EIC for a child who didn’t live with you for more than
half of the year, even if you paid most of the child’s living expenses. The IRS
may ask you for documents to show you lived with each qualifying child.
Documents you might want to keep for this purpose include school and
childcare records and other records that show your child’s address.
TIP
If the child didn’t live with you for more than half of the year because of a
temporary absence, birth, death, or kidnapping, see Exception to time lived
with you in the instructions for Form 1040, line 27.
!
▲
If the child was married or meets the conditions to be a qualifying child of
another person (other than your spouse, if filing a joint return), special rules
apply. For details, see Married child or Qualifying child of more than one
person in the instructions for Form 1040, line 27.
CAUTION
SCHEDULE B
OMB No. 1545-0074
Interest and Ordinary Dividends
(Form 1040)
Department of the Treasury
Internal Revenue Service
2022
Go to www.irs.gov/ScheduleB for instructions and the latest information.
Attach to Form 1040 or 1040-SR.
Name(s) shown on return
Attachment
Sequence No. 08
Your social security number
Harvey Specter
Part I
Interest
933669999
1
Goldman Sachs
(See instructions
and the
Instructions for
Form 1040,
line 2b.)
1000
Note: If you
received a
Form 1099-INT,
Form 1099-OID,
or substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the total interest
shown on that
form.
1
2
3
Part II
Ordinary
Dividends
Amount
List name of payer. If any interest is from a seller-financed mortgage and the
buyer used the property as a personal residence, see the instructions and list this
interest first. Also, show that buyer’s social security number and address:
Add the amounts on line 1 . . . . . . . . . . . . . . . . . . .
Excludable interest on series EE and I U.S. savings bonds issued after 1989.
Attach Form 8815
. . . . . . . . . . . . . . . . . . . . .
4
Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b
Note: If line 4 is over $1,500, you must complete Part III.
List name of payer: Stock Investments
5
(See instructions
and the
Instructions for
Form 1040,
line 3b.)
2
1000
3
4
1000
Amount
286
5
Note: If you
received a
Form 1099-DIV
or substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the ordinary
6
Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b
dividends shown
on that form.
Note: If line 6 is over $1,500, you must complete Part III.
6
286
Part III
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign
account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.
Foreign
Accounts
Yes No
and Trusts 7a At any time during 2022, did you have a financial interest in or signature authority over a financial
Caution: If
required, failure to
file FinCEN Form
114 may result in
substantial
penalties.
Additionally, you
may be required
to file Form 8938,
Statement of
Specified Foreign
Financial Assets.
See instructions.
account (such as a bank account, securities account, or brokerage account) located in a foreign
country? See instructions . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial
Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114
and its instructions for filing requirements and exceptions to those requirements . . . . . .
b If you are required to file FinCEN Form 114, list the name(s) of the foreign country(-ies) where the
financial account(s) are located:
8
During 2022, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520. See instructions . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 17146N
Schedule B (Form 1040) 2022
Tax Return 3
ACT 4494
FA 2023
Name: ____________________________________________________________________________
Harvey and Donna’s taxable income from this return is: $ __________________________
I worked on this return with:
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________
I worked for approximately _________________________hrs/min on this return.
Harvey greatly appreciates the tax estimate you prepared for him a few days ago. He has more information which
will require some changes to the original return you did for him. Please read the new information and make
whatever changes are required to update the 2022 Form 1040 you have already prepared.
Harvey R. Specter, born April 3, 1983, is a married taxpayer who works at the law firm Pearson Hardman. He
lives at 901 20 Stewart Street, New York, New York (in the penthouse!!!). His Social Security number is 933-669999. Harvey earned $90,000 in wages and had $10,439 withheld in federal income taxes; both items were
reported to him on his W-2. He also earned $1,000 in bank interest from Goldman Sachs (at 200 West St.) on his
savings account. This amount was reported to him on his December 2022 bank statement.
Harvey married his long time, secret love, Donna Paulsen, on December 31, 2022 at 11:45pm. They would like to
file a joint return for 2022. Harvey and Donna will live in Harvey’s apartment. Donna has not changed her last
name with the Social Security Administration. Donna’s Social Security number is 944-55-8888.
Harvey provides support for a few people. He has a daughter, named Lily after his mother (SSN 999-55-8787)
with his former flame Dana Scott (SSN 888-77-9999). Even though he didn’t love Dana, he married her when she
became pregnant so that his daughter would not be born out of wedlock. The two were divorced soon after Lily’s
birth on August 23, 2015. Their divorce was finalized on January 1, 2016. Lily was born in New York, but
currently lives in the United Kingdom with her mother who is her custodial parent. Harvey provides more than
half of Lily’s support. Harvey and Dana are still friends and they do not have a formal agreement as to which of
them claim Lily as a dependent. Harvey also provides support for Dana. He pays her a total of $6,000 per month
for both her and Lily. These payments are all in cash. When Lily turns 18, the payments will be reduced to $4,000
per month. He also provides support to his younger brother Marcus. Marcus lives in Boston. Harvey provides
approximately one half of Marcus’ support, which includes bailing him out of gambling debts.
Donna earned wages of $70,000 as an administrative assistant at Pearson Hardman. She had $7,384 withheld for
federal income taxes. Both items were reported to her on her W-2. Tips of $500 given to her by one of the firm’s
clients were also included on her W-2. Since Donna’s bank does not pay interest on savings or checking accounts,
she has moved her money over to Harvey’s account. While Donna did not earn any interest on her money in the
bank, her financial news for the year wasn’t all bad. Two of her stock investments paid dividends. She received
total dividends of $286 ($82 from Canopy Growth Corp, $204 from Alphabet). Donna also sold some stock. She
bought Giz Co., Inc. stock many years ago for $2,000. She sold this stock in 2022 for $5,000. She also sold
Magaliscious, Inc. stock for $500 on Thanksgiving. She bought the Magaliscious stock for $4,000 in 2020 when
she was at home during the COVID pandemic. Donna realized by the middle of December that Magaliscious
stock was about to take off, so she bought it back before Christmas, paying $500 for the same number of shares
she’d held previously. Harvey sold his Western Union stock. He bought it in 2018 for $5,000 and sold it in
February 2022 for $1,000.
Donna and Harvey had a busy year. Donna had to obtain a loan of $20,000 to pay off her credit cards; Harvey
refused to pay them for her. She started out with $20,100 of debt but $5,000 of her credit card debt was forgiven
by the credit card company. She received a 1099-C from the credit card company for that amount. She is so glad
that her debt is almost clear!
Donna sustained an injury from too much filing. She was out of work for one week while her injury healed. Since
she had already used up her sick leave with a bout of COVID 19z, she would not have been paid while out of
work with her filing injury. However, Donna has a disability insurance policy that she purchased on her own (no
affiliation to her job at Pearson). She paid premiums of $775 during the year, and the policy paid her a benefit of
$2,000 for the week she was out of work.
Harvey found a black cloth bag full of cash in the elevator in their apartment building. He took it home and
counted it and discovered there was $8,000 in the bag! Since Harvey believed the cash likely belonged to a
criminal, he decided not to turn it in to the cops, and kept it instead.
Because Pearson Hardman offers its employees a health plan with high deductibles, Harvey contributes to a health
savings account (HSA). In 2022 he contributed $2,000.
Harvey’s father Gordon died in 2022. His insurance policy named Harvey and Marcus as beneficiaries. Each of
them received $2,000,000 from the policy. Harvey also received $50,000 in cash from his father’s estate, in
addition to the life insurance benefit; Harvey promptly put all of his inheritance into the bank. He opened a CD
with $50,000 since he didn’t need the money right away, and the interest rate was higher. He earned $1,990
dollars in interest on the money in the CD. Unfortunately, he had to withdraw some of the money to pay some
unexpected Amazon credit card bills. The bank charged him penalty of $78 for taking the money out of the CD
early.
Because of their influx of money in 2022, Harvey and Donna decided to contribute to charity. When Donna
moved in with Harvey, she went through her closets and decided to donate four bags of clothing to charity. She
figured that way, she would have room for all of the new clothes Harvey would buy her. She took the bags to the
Salvation Army (5 miles away). On the way there, she passed a homeless woman on the street and gave her one of
the bags. Each bag had an IRS value of $100. While Donna was shopping on Amazon, she noticed that a local
charity, Animal Haven, was asking for contributions. It was so cool, she could just shop right in Amazon, have
the stuff delivered to the shelter, and charged to her credit card! She donated $1,032 worth of pet food, cat litter
and cleaning products in 2022, just through Amazon. Of course, Animal Haven wrote her a very nice thank you
note which included the value of her contributions. Harvey and Donna also spent a day volunteering at a homeless
shelter. They cooked and served food, and cleaned for a whole day. They had to take off work to do so, but the
sense of accomplishment they felt at the end of the day was worth the eight hours they spent there. Harvey makes
$100 per day and Donna makes $70 per day. They drove 25 miles to the shelter, round trip. Harvey’s favorite
charity was having a silent auction to raise funds. He donated a bottle of Macallen 18. The bottle sold at the
auction for $800. The fair market value of the bottle (and the price Harvey paid for it) is $500. The charity he
likes is the Just Like My Child Foundation. Donna encouraged him to make the donation when she heard about
their Girl Power Project. The charity used the funds from the auction to support their mission.
Harvey and Marcus went on a few gambling trips during which Harvey won $11,523 dollars at the poker tables.
They went to the Turning Stone Resort Casino, a luxury establishment in central New York. Unfortunately
Marcus lost each time they went. Harvey also had some losses at the casino, totaling $6,500.
Harvey paid interest on the condo mortgage of $23,000. He also paid real estate property taxes of $9,000. Both
items were reported to him on a 1098 from the mortgage company.
Since Harvey was uncertain of the amount of taxes he and Donna would owe, he made an estimated tax payment
of $6,000. They would like any refund they may receive to be deposited into their checking account. Their
account number is 321456987. They cannot remember the routing number for the bank. They would like for you,
their professional tax preparer and CPA, to deal with the IRS if needed with regards to their 2022 tax return. If
they owe money, they will send in a check to the IRS. Harvey would like $3 to go the Presidential Campaign
Fund, but Donna is not interested in contributing in any way to politics.
Please prepare Harvey and Donna’s 2022 Form 1040 and any required schedules.
The assignment should be stapled and assembled in the correct IRS order, with the attached cover sheet on the
front. The text of the return problem should be included at the back of your workpapers if you make notes on it.
If you do not take notes and write calculations on it, there is no need to turn in anything except the cover page.
Please include the names of everyone you worked with to complete the return. This assignment is due on 10/24 at
2:00pm.
All tax return assignments are to be turned in on paper with handwritten tax forms. Workpapers may be prepared
either by hand or by using Excel or Word, but the return forms should be completed by hand. Any electronic
(Word or Excel) file used to help you prepare the return should be turned in on paper with the return and
electronically through Canvas. Only the files you use to show me your work (your workpapers) are required to be
uploaded. Workpapers are an essential part of preparing a tax return and should be included. Be sure to include
any calculations that disallow or allow your taxpayers to take a credit. While this can be a group assignment, each
person is required to turn in their own tax return and workpapers. If you use Excel to complete your workpapers,
you MAY NOT copy another student’s file.
I would highly recommend using the Form 1040 instructions to help with the forms if you have questions about
what goes on what line. I expect that while completing this return you will need to perform some research. You
may even need to go outside of your textbook. If you do so, please remember to cite your sources. Tax returns
also require some critical thinking. While facts have been given to you, you may need to interpret those facts or
make assumptions. Please document any assumptions you make to complete the return in your workpapers. If
you feel that you are missing required information, please let me know and I will ask the client for you.
Schedules B and D are not required. Form 8332 is not required. Credit forms are not required as long as you show
the calculations required.