Basic Scenario 2018 Tax Year Interview Notes

Transcription

1 Basic Training Tax Year 2018

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3 Basic Scenario 2018 Tax Year Interview Notes Brad and Julie are married and want to file jointly. Julie is an elementary school teacher at a private school and she spent of her own money for classroom supplies. Ann is attending university and in her sophomore year working on a degree in architecture. In addition to her tuition she had book expenses of Ann was required to purchase a specialized software program (CAD, computer-aided design) and drafting supplies for a class. The software was and the drafting supplies were In addition, she bought a new computer for 1, Ann worked during the summer and earned 5, with federal tax withheld. Ann also earned by occasionally taking care of her younger sister. Julie s niece Sylvia (from Mexico) lived with them all 2018, she is not legally present in the United States. Sylvia s parents live and work in Mexico and do not contribute to her support. Health insurance coverage for the whole family except Brad and Sylvia was secured through Julie s employer for the entire year; her employer paid a portion of the premiums and Julie paid per month with post-tax monies. Brad did not have health insurance for January through May; his Medicare coverage started in June. Sylvia did not have health insurance in They have their checking account number ( ) but do not know the routing number. Their account is at UFCU. 1

4 Bradley Joseph Harvard Bradley Joseph Harvard Julie Lea Harvard Julie Lea Harvard Brad s DOB Julie s DOB Annette Carol Harvard Annette Carol Howard Linda Kate Harvard Linda Kate Harvard Annette s DOB Linda s DOB

5 Department of the Treasury Internal Revenue Service PO Box Austin, TX Notice CP565 Notice date May 31, 2018 To contact us Phone International calls: Case reference number Date of birth February 15, 2001 Page 1 of 2 SYLVIA TERESA DE LA MONTOYA GARCIA 4587 MAGNOLIA LANE AUSTIN, TX In response to your Individual Taxpayer Identification Number application. We Renewed your Individual Taxpayer Identification Number (ITIN) This notice confirms your assigned ITIN is now Active. Keep this notice in a secure place with your other important documents. We ll mail back the documents you submitted with your Form W-7 application in a separate envelope. You should receive them within 60 days. If you don t receive the documents within 60 days or if you moved since submitting your application, call us at the telephone number listed above. You can also write to us at the address listed at the top of this notice. Your ITIN and personal information ITIN Full name SYLVIA TERESA DE LA MONTOYA GARCIA First Middle Last Date of birth February 15, 2001 The IRS will use your ITIN, along with your full name and date of birth, to identify tax documents, payments, and any other correspondence. Therefore, it s very important that the personal information we have for you is correct. If the above information is incorrect, complete the Contact information section below and mail it to us at the address listed above. You don t need to respond to this notice unless your personal information is incorrect. Continued on back SYLVIA TERESA DE LA MONTOYA GARCIA 4587 MAGNOLIA LANE AUSTIN, TX Notice CP565 Case reference number Notice date May 31, 2018 Contact information Internal Revenue Service PO Box Austin, TX Name Date of birth Address City State Country Zip code Primary phone Best time to call a.m. p.m. Secondary phone Best time to call a.m. p.m. 3

6 OMB Number Department of the Treasury - Internal Revenue Service Intake/Interview & Quality Review Sheet Form C (October 2018) Please complete pages 1-3 of this form. You are responsible for the information on your return. Please provide complete and accurate information. If you have questions, please ask the IRS-certified volunteer preparer. You will need: Tax Information such as Forms W-2, 1099, 1098, Social security cards or ITIN letters for all persons on your tax return. Picture ID (such as valid driver's license) for you and your spouse. Volunteers are trained to provide high quality service and uphold the highest ethical standards. To report unethical behavior to the IRS, us at wi.voltax@irs.gov Part I Your Personal Information (If you are filing a joint return, enter your names in the same order as last year s return) 1. Your first name M.I. Last name Daytime telephone number Are you a U.S. citizen? BRADLEY J HARVARD Yes No 2. Your spouse s first name M.I. Last name Daytime telephone number Is your spouse a U.S. citizen? JULIE L HARVARD Yes No 3. Mailing address Apt # City State ZIP code 4587 MAGNOLIA LANE AUSTIN TX Your Date of Birth 5. Your job title 6. Last year, were you: a. Full-time student Yes No 5/16/1952 MAINTENANCE b. Totally and permanently disabled Yes No c. Legally blind Yes No 7. Your spouse s Date of Birth 8. Your spouse s job title 9. Last year, was your spouse: a. Full-time student Yes No 8/26/1963 EDUCATOR b. Totally and permanently disabled Yes No c. Legally blind Yes No 10. Can anyone claim you or your spouse as a dependent? Yes No Unsure 11. Have you, your spouse, or dependents been a victim of tax related identity theft or been issued an Identity Protection PIN? Yes No Part II Marital Status and Household Information Never Married (This includes registered domestic partnerships, civil unions, or other formal relationships under state law) Married a. If Yes, Did you get married in 2018? Yes No 1. As of December 31, 2018, what was your marital status? b. Did you live with your spouse during any part of the last six months of 2018? Yes No Divorced Date of final decree Legally Separated Date of separate maintenance agreement Widowed Year of spouse s death 2. List the names below of: If additional space is needed check here and list on page 3 everyone who lived with you last year (other than your spouse) anyone you supported but did not live with you last year To be completed by a Certified Volunteer Preparer Did the taxpayer(s) pay more than half the cost of maintaining a home for this person? (yes/no) Did the taxpayer(s) provide more than 50% of support for this person? (yes/no/n/a) Did this person have less than 4,150 of income? (yes/no) Did this person provide more than 50% of his/ her own support? (yes/no) Is this person a qualifying child/relative of any other person? (yes/no) Totally and Permanently Disabled (yes/no) Full-time Student last year (yes/no) Single or Married as of 12/31/18 (S/M) Resident of US, Canada, or Mexico last year (yes/no) US Citizen (yes/no) Number of months lived in your home last year Relationship to you (for example: son, daughter, parent, none, etc) (c) Date of Birth (mm/dd/yy) Name (first, last) Do not enter your name or spouse s name below (i) (h) (g) (f) (e) (d) (b) (a) ANN HARVARD 11/24/1997 DAUGHT 12 YES NO S YES NO LINDA HARVARD 9/1/2006 DAUGHT 12 YES NO S YES NO SYLVIA MONTOYA 2/15/2001 NIECE 12 NO YES S YES NO 4 Catalog Number 52121E Form C (Rev )

7 Page 2 Check appropriate box for each question in each section Yes No Unsure Part III Income Last Year, Did You (or Your Spouse) Receive 1. (B) Wages or Salary? (Form W-2) If yes, how many jobs did you have last year? 2. (A) Tip Income? 3. (B) Scholarships? (Forms W-2, 1098-T) 4. (B) Interest/Dividends from: checking/savings accounts, bonds, CDs, brokerage? (Forms 1099-INT, 1099-DIV) 5. (B) Refund of state/local income taxes? (Form 1099-G) 6. (B) Alimony income or separate maintenance payments? 7. (A) Self-Employment income? (Form 1099-MISC, cash) 8. (A) Cash/check payments for any work performed not reported on Forms W-2 or 1099? 9. (A) Income (or loss) from the sale of Stocks, Bonds or Real Estate? (including your home) (Forms 1099-S,1099-B) 10. (B) Disability income? (such as payments from insurance, or workers compensation) (Forms 1099-R, W-2) 11. (A) Retirement income or payments from Pensions. Annuities, and or IRA? (Form 1099-R) 12. (B) Unemployment Compensation? (Form 1099G) 13. (B) Social Security or Railroad Retirement Benefits? (Forms SSA-1099, RRB-1099) 14. (M) Income (or loss) from Rental Property? 15. (B) Other income? (gambling, lottery, prizes, awards, jury duty, Sch K-1, royalties, foreign income, etc.) Specify MEDICAL STUDY 2 Yes No Unsure Part IV Expenses Last Year, Did You (or Your Spouse) Pay 1. (B) Alimony or separate maintenance payments? If yes, do you have the recipient s SSN? Yes No 2. Contributions to a retirement account? IRA (A) 401K (B) Roth IRA (B) Other 3. (B) College or post secondary educational expenses for yourself, spouse or dependents? (Form 1098-T) 4. (A) Deductions: Medical & Dental (including insurance premiums) Mortgage Interest (Form 1098) Taxes (State, Real Estate, Personal Property, Sales) Charitable Contributions 5. (B) Child or dependent care expenses such as daycare? 6. (B) For supplies used as an eligible educator such as a teacher, teacher s aide, counselor, etc.? 7. (A) Expenses related to self-employment income or any other income you received? 8. (B) Student loan interest? (Form 1098-E) Yes No Unsure Part V Life Events Last Year, Did You (or Your Spouse) 1. (HSA) Have a Health Savings Account? (Forms 5498-SA, 1099-SA, W-2 with code W in box 12) 2. (A) Have credit card or mortgage debt cancelled/forgiven by a lender or have a home foreclosure? (Forms 1099-C, 1099-A) 3. (A) Adopt a child? 4. (B) Have Earned Income Credit, Child Tax Credit or American Opportunity Credit disallowed in a prior year? If yes, for which tax year? 5. (A) Purchase and install energy-efficient home items? (such as windows, furnace, insulation, etc.) 6. (B) Live in an area that was declared a Federal disaster area? If yes, where? 7. (A) Receive the First Time Homebuyers Credit in 2008? 8. (B) Make estimated tax payments or apply last year s refund to this year s tax? If so how much? 9. (A) File a federal return last year containing a capital loss carryover on Form 1040 Schedule D? 10. Receive a letter from the IRS? 5 Catalog Number 52121E Form C (Rev )

8 Page 3 Check appropriate box for each question in each section Yes No Unsure Part VI - Health Care Coverage - Last year, did you, your spouse, or dependent(s) Form 1095-B Form 1095-C 1. (B) Have health care coverage? 2. (B) Receive one or more of these forms? (Check the box) 3. (A) Have coverage through the Marketplace (Exchange)? [Provide Form 1095-A] 3a. (A) If yes, were advance credit payments made to help you pay your health care premiums? 3b. (A) If yes, Is everyone listed on your Form 1095-A being claimed on this tax return? 4. (B) Have an exemption granted by the Marketplace? To be Completed by a Certified Volunteer Preparer (Use Publication 4012 and check the appropriate box(es) indicating Minimum Essential Coverage (MEC) for everyone listed on the return.) Name MEC All Year No MEC Months with MEC Months with Exemption Exempt All Year Notes Taxpayer J F M A M J J A S O N D J F M A M J J A S O N D X Spouse X J F M A M J J A S O N D J F M A M J J A S O N D Dependent X J F M A M J J A S O N D J F M A M J J A S O N D Dependent J F M A M J J A S O N D J F M A M J J A S O N D Dependent J F M A M J J A S O N D J F M A M J J A S O N D Part VII Additional Information and Questions Related to the Preparation of Your Return BHARVARD@GMAIL.COM c. To split your refund between different accounts Yes No 1. Provide an address (optional) (this address will not be used for contacts from the Internal Revenue Service) 2. Presidential Election Campaign Fund (If you check a box, your tax or refund will not change) Check here if you, or your spouse if filing jointly, want 3 to go to this fund You Spouse 3. If you are due a refund, would you like: a. Direct deposit Yes No 4. If you have a balance due, would you like to make a payment directly from your bank account? Yes No b. To purchase U.S. Savings Bonds Yes No Many free tax preparation sites operate by receiving grant money. The data from the following questions may be used by this site to apply for these grants. Your answers will be used only for statistical purposes. 5. Would you say you can carry on a conversation in English, both understanding & speaking? Very well Well Not well Not at all Prefer not to answer 6. Would you say you can read a newspaper or book in English? Very well Well Not well Not at all Prefer not to answer 7. Do you or any member of your household have a disability? Yes No Prefer not to answer 8. Are you or your spouse a Veteran from the U.S. Armed Forces? Yes No Prefer not to answer Additional comments Privacy Act and Paperwork Reduction Act Notice The Privacy Act of 1974 requires that when we ask for information we tell you our legal right to ask for the information, why we are asking for it, and how it will be used. We must also tell you what could happen if we do not receive it, and whether your response is voluntary, required to obtain a benefit, or mandatory. Our legal right to ask for information is 5 U.S.C We are asking for this information to assist us in contacting you relative to your interest and/or participation in the IRS volunteer income tax preparation and outreach programs. The information you provide may be furnished to others who coordinate activities and staffing at volunteer return preparation sites or outreach activities. The information may also be used to establish effective controls, send correspondence and recognize volunteers. Your response is voluntary. However, if you do not provide the requested information, the IRS may not be able to use your assistance in these programs. The Paperwork Reduction Act requires that the IRS display an OMB control number on all public information requests. The OMB Control Number for this study is Also, if you have any comments regarding the time estimates associated with this study or suggestion on making this process simpler, please write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, Washington, DC Catalog Number 52121E Form C (Rev )

9 Form (EN-SP) (June 2018) Department of the Treasury - Internal Revenue Service Consent to Disclose Tax Return Information to VITA/TCE Tax Preparation Sites Federal Disclosure: Federal law requires this consent form be provided to you. Unless authorized by law, we cannot disclose your tax return information to third parties for purposes other than the preparation and filing of your tax return without your consent. If you consent to the disclosure of your tax return information, Federal law may not protect your tax return information from further use or distribution. You are not required to complete this form to engage our tax return preparation services. If we obtain your signature on this form by conditioning our tax return preparation services on your consent, your consent will not be valid. If you agree to the disclosure of your tax return information, your consent is valid for the amount of time that you specify. If you do not specify the duration of your consent, your consent is valid for one year from the date of signature. Terms: Global Carry Forward of data allows TaxSlayer LLC, the provider of the VITA/TCE tax software, to make your tax return information available to ANY volunteer site participating in the IRS's VITA/TCE program that you select to prepare a tax return in the next filing season. This means you will be able to visit any volunteer site using TaxSlayer next year and have your tax return populate with your current year data, regardless of where you filed your tax return this year. This consent is valid through November 14, The tax return information that will be disclosed includes, but is not limited to, demographic, financial and other personally identifiable information, about you, your tax return and your sources of income, which was input into the tax preparation software for the purpose of preparing your tax return. This information includes your name, address, date of birth, phone number, SSN, filing status, occupation, employer's name and address, and the amounts and sources of income, deductions and credits that were claimed on, or contained within, your tax return. The tax return information that will be disclosed also includes the name, SSN, date of birth, and relationship of any dependents that were claimed on your tax return. You do not need to provide consent for the VITA/TCE partner preparing your tax return this year. Global Carry Forward will assist you only if you visit a different VITA or TCE partner next year. Limitation on the Duration of Consent: I/we, the taxpayer, do not wish to limit the duration of the consent of the disclosure of tax return information to a date earlier than presented above (November 14, 2020). If I/we wish to limit the duration of the consent of the disclosure to an earlier date, I/we will deny consent. Limitation on the Scope of Disclosure: I/we, the taxpayer, do not wish to limit the scope of the disclosure of tax return information further than presented above. If I/we wish to limit the scope of the disclosure of tax return information further than presented above, I/we will deny consent. Consent: I/we, the taxpayer, have read the above information. I/we hereby consent to the disclosure of tax return information described in the Global Carry Forward terms above and allow the tax return preparer to enter a PIN in the tax preparation software on my behalf to verify that I/we consent to the terms of this disclosure. Primary taxpayer signature Date Secondary taxpayer signature Date If you believe your tax return information has been disclosed or used improperly in a manner unauthorized by law or without your permission, you may contact the Treasury Inspector General for Tax Administration (TIGTA) by telephone at , or by at complaints@tigta.treas.gov. Catalog Number 71414A Form (EN-SP) (6-2018) 7

10 b Employer Identification Number (EIN) c Employer s name, address and ZIP code Eagle Academy PO Box 123 Austin, TX d Employee s name, address and ZIP code Julie L. Harvard 4587 Magnolia Lane Austin, TX State Employer s state ID number 16 State wages, tips, etc. 12a See instructions for box 12 D 1, b 12c 12d 12e DD 4, This information being provided to Internal Revenue Service Copy B To Be Filed With Employee s FEDERAL Tax Return a Employee s Social Security Number State income tax CORRECTED 18 Local wages, tips, etc. 1 Wages, tips other compensation 35, Social security wages 36, Medicare wages and tips 36, Federal income tax withheld 3, Social security tax withheld 2, Medicare tax withheld Social security tips 8 Allocated tips 9 Verification code 50A6-21B3-9B12-19D8 10 Dependent care benefits 11 Nonqualified plans 13 Statutory Retirement Plan Third- party Employee plan sick-pay 14 Other Note: Code DD in box 12 of Julie s W-2 indicates the total cost of her health insurance plan regardless of who paid the premiums. 19 Local income tax 20 Locality name Department of the Treasury Internal Revenue Service FORM W-2 wage and Tax Statement 2018 Copy 2 To be filed with employee s state or local tax return OMB No Form W-2 (keep for your records) Department of the Treasury Internal Revenue Service b Employer Identification Number (EIN) c Employer s name, address and ZIP code Manchaca Academy PO Box 2314 Manchaca, TX d Employee s name, address and ZIP code Bradley J. Harvard PO Box 4523 Austin, TX State Employer s state ID number 16 State wages, tips, etc. 12a See instructions for box 12 12b 12c 12d 12e This information being provided to Internal Revenue Service Copy B To Be Filed With Employee s FEDERAL Tax Return a Employee s Social Security Number State income tax CORRECTED 18 Local wages, tips, etc. 1 Wages, tips other compensation 3, Social security wages 3, Medicare wages and tips 3, Federal income tax withheld Social security tax withheld Medicare tax withheld Social security tips 8 Allocated tips 9 Verification code 10 Dependent care benefits 11 Nonqualified plans 13 Statutory Retirement Plan Third- party Employee plan sick-pay 14 Other 19 Local income tax 20 Locality name Department of the Treasury Internal Revenue Service FORM W-2 wage and Tax Statement 2018 Copy 2 To be filed with employee s state or local tax return OMB No Form W-2 (keep for your records) Department of the Treasury Internal Revenue Service 8

11 ABC Investments Form 1099 With Account Summary Totals for your Records Tax Year 2018 Page 1 Payer s Name and Address ABC Investments 211 Main Street San Francisco, CA Federal ID Number: Account Number: XXXXXXX4256 Dividends and Distributions 2018 Date Prepared: January 15, 2019 Recipient s Name and Address Bradley & Julie Harvard 4587 Magnolia Lane Austin, TX Taxpayer ID Number: XXX-XX-2345 Form 1099-DIV Department of the Treasury-Internal Revenue Service Copy B for Recipient (OMB No ) Box Description Amount Total 1a Total Ordinary Dividends (includes amount shown in box 1b) 1b Qualified Dividends a Total Capital Gain Distribution (includes amount shown in boxes 2b, 2c, and 2d) 2b Unrecap. Sec 1250 Gain 2c Section 1202 Gain 2d Collectibles (28%) gain 3 Nondividend Distributions 4 Federal Income Tax Withheld 5 Investment Expenses 6 Foreign Tax Paid 7 Foreign country or U.S. Possession 8 Cash Liquidation Distributions 9 Noncash Liquidation Distributions 10 Exempt-interest Dividends 11 Specified Private Activity Bond Interest dividends Interest Income 2018 Form 1099-INT Department of the Treasury-Internal Revenue Service Copy B for Recipient (OMB No ) Box Description Total 1 Interest Income Early Withdrawal Penalty 3 Interest on U.S. Savings Bonds & Treas. Obligations 4 Federal Income Tax Withheld 5 Investment Expense 6 Foreign Tax Paid 7 Foreign Country or U.S. Possession 8 Tax-exempt Interest 9 Specified Private Activity Bond Interest 10 Tax-exempt Bond CUSIP no. 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 I.R.S. determines that is has not been reported. If you should have any questions regarding information being reported on this form please call us at

12 PAYER S name, street address, city or town, province or state, country, and ZIP or foreign postal code Hometown Pension Fund PO Box 7894 Austin, TX PAYER S federal identification number RECIPIENT S name Bradley J. Harvard RECIPIENT S identification number CORRECTED (if checked) 1 Gross distribution OMB No a Taxable amount b Taxable amount not determined 3 Capital gain (included in box 2a) 5 Employee contributions /Designated Roth contributions or insurance premiums 2018 Form 1099-R Total distribution 4 Federal income tax withheld Net unrealized appreciation in employer s securities Distributions From Pensions, Annuities, Retirement or Profit- Sharing Plans, IRAs, Insurance Contracts, etc 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. Street address (including apt. no.) 4587 Magnolia Lane City or town, province or state, country, and ZIP or foreign postal code Austin, TX Amount allocable to IRR within 5 years Account number (see instructions 11 1st year of desig. Roth contrib. FATCA filing requirement Date of payment 7 Distribution code(s) 7 IRA/ SEP/ SIMPLE 9a Your percentage of total distribution % 12 State tax withheld 8 Other 9b Total employee contributions % This information is being furnished to the Internal Revenue Service. 13 State/Payer s state no. 14 State distribution 15 Local tax withheld 16 Name of locality 17 Local distribution Form 1099-R Department of the Treasury-Internal Revenue Service FORM SSA-1099 SOCIAL SECURITY BENEFIT STATEMENT PART OF YOUR SOCIAL SECURITY BENEFITS SHOWN IN BOX 5 MAY BE TAXABLE INCOME. SEE THE REVERSE FOR MORE INFORMATION. Box 1 Name Box 2. Beneficiary s Social Security Number Bradley Joseph Harvard Box 4. Benefits RePaid to SSA in 2018 Box 5. Net Benefits for 2018 (Box 3 minus Box 4) 12, DESCRIPTION OF AMOUNT IN BOX 3 DESCRIPTION OF AMOUNT IN BOX 4 Box 3. Benefits Paid in , Paid by check or direct deposit: 10, Medicare Part B premiums deducted from your benefits: Medicare Part C premiums deducted from your benefits: Medicare Prescription Drug Premiums (Part D) deducted from your benefits: Benefits for 2018: 12, Note: The total of Medicare Parts B, C and D are 1, Box 6. Voluntary Federal Income Tax Withholding Box 7. Address 4587 Magnolia Lane Austin, TX Box 8. Claim Number (Use this number if you need to contact SSA.) Form SSA-1099-SM DO NOT RETURN THIS FORM TO SSA OR IRS 10

13 PAYER S name, street address, city or town, province or state, country, ZIP or foreign postal code, and telephone no. Texas Workforce Commission 100 East 15 th Street Austin, TX PAYER S federal identification number RECIPIENT S identification number PAYER S/BORROWER S name Bradley J Harvard Street address (including apt. no.) 4587 Magnolia Lane City or Town, province or state, country, and ZIP or foreign postal code Austin, TX Account number (see instructions CORRECTED (if checked) 1 Unemployment compensation 1, State or local income tax refunds, credits, or offsets OMB No Form 1099-G 3 Box 2 amount is for tax year 4 Federal income tax withheld RTAA payments 7 Agriculture payments 9 Market gain 10a State 10b State identification no. 6 Taxable grants 8 If checked, box 2 is trade or business income 11 State income tax withheld Certain Government Payments Copy B For Recipient 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 Form 1099-G (keep for your records) Department of the Treasury Internal Revenue Service PAYER S name, street address, city or town, province or state, country, ZIP or foreign postal code, and telephone no. ABC Drug Research and Development PO Box 6542 Austin, TX PAYER S federal identification number RECIPIENT S name Bradley J. Harvard Street address (including apt. no.) 4587 Magnolia Lane RECIPIENT S identification number City or town, province or state, country, and ZIP or foreign postal code Austin, TX CORRECTED (if checked) 1 Rents 2 Royalties 3 Other income 1, Fishing boat proceeds 7 Nonemployee compensation 9 Payer made direct sales of 5,000 or more of consumer products to a buyer (recipient) for resale OMB No Form 1099-MISC 4 Federal income tax withheld 6 Medical and health care payments 8 Substitute payments in lieu of dividends or interest 10 Crop insurance proceeds Miscellaneous Income Copy B For Recipient 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. Account number (see instructions) MEDICAL STUDY 15a Section 409A deferrals FATCA filing requirement 15b Section 409A income 13 Excess golden parachute payments 16 State tax withheld 14 Gross proceeds paid to an attorney 17 State/Payer s state no. 18 State income Form 1099-MISC (keep for your records) Department of the Treasury Internal Revenue Service 11

14 RECIPIENT S/LENDER S name, street address, city or town, province or state, country, ZIP or foreign postal code, and telephone number KLM Bank PO Box 4568 Austin, TX RECIPIENT S federal identification number BORROWER S name Julie L Harvard Street address (including apt. no.) 4587 Magnolia Lane BORROWER S social security number City or Town, province or state, country, and ZIP or foreign postal code Austin, TX Account number (see instructions) CORRECTED (if checked) 1 Student loan interest received by lender 1, OMB No Form 1098-E Student Loan Interest Statement Copy B For Borrower This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a tax return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for student loan interest. 2. If checked, box 1 does not include loan origination fees and/or capitalized interest for loans made before September 1, Form 1098-E (keep for your records) Department of the Treasury Internal Revenue Service Interview Notes: Julie is an elementary school teacher at a private school and she spent of her own money for classroom supplies. Kathy Penn EIN December 31, Magnolia Ln Austin TX Received from: Bradley & Julie Harvard 2, for after school and summer care for Linda Harvard 2, Total Amount Received Where the little things matter the most. Interview Notes: Ann earned by occasionally taking care of her younger sister. 12

15 FILER S name, street address, city or town, province or state, country, ZIP or foreign postal code, and telephone number State University PO Box 6547 Austin, TX FILER S federal identification no STUDENT S name Annette C Harvard STUDENT S taxpayer identification no. XXX-XX-9125 Street address (including apt. no.) 4587 Magnolia Ln. City or Town, province or state, country, and ZIP or foreign postal code Austin, TX CORRECTED 1 Payments received for qualified tuition and related expenses 4, OMB No Form 1098-T 3 If this box is checked, your educational institution has changes its reporting method for Adjustments made for a prior year 6 Adjustments to scholarships or grants for a prior year 5 Scholarships or grants 1, Checked if the amount in box 1 or 2 includes amounts for an academic period beginning January-March 2018 Tuition Statement Copy B For Student This is important tax information and is being furnished to the Internal Revenue Service. This form may be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return. Service Provider/Acct No. (see instr.) 8 Check if at least 9 Checked if a graduate 10 Ins. Contract half-time student student.... reimb./refund Form 1098-T (keep for your records) Department of the Treasury Internal Revenue Service Interview Notes: Ann is attending university and in her sophomore year working on a degree in architecture. In addition to her tuition she had book expenses of Ann was required to purchase a specialized software program (CAD, computer-aided design) and drafting supplies for a class. The software was and the drafting supplies were In addition, she bought a new computer for 1,

16 Account Activity View transaction by term: Spring 2018: 0.00 Select Spring 2018 Account Activity To sort, click on the desired column header Description Code Date Amount() Tuition, College Credit TUI1C 12/15/ Fee, General Use FGNFC 12/15/ Fee, Sustainability FSSTN 12/15/ Fee, Student Activity Res 1 FSA1C 12/15/ Fee, Student Accident Ins FSIFC 12/15/ Fee, Parking Permit PKPT 12/15/ STUDENT SUCCESS COURSE SSMAT 12/15/ Tuition, College Credit TUI1C 01/06/ Fee, General Use FGNFC 01/06/ Fee, Sustainability FSSTN 01/06/ Fee, Student Activity Res 1 FSA1C 01/06/ Fee, Student Accident Ins FSIFC 01/06/ Direct Subsidized Loan DRSLY 01/12/ Federal Pell Grant FPELL 01/12/ Texas Public Education Grant TPEG 01/12/ Capital Idea CPID 01/12/ Touchnet Payment TN 01/12/ H1-Fin Aid Refund REF 01/14/ Term Balance: 0.00 Tuition and fees total Qualifying expenses for scholarships and grants are Qualifying expenses for American Opportunity credit are 1,224. Grants that qualify for living expenses total

17 Account Activity View transaction by term: Summer 2018: 0.00 Select Summer 2018 Account Activity To sort, click on the desired column header Description Code Date Amount() Tuition, College Credit TUI1C 05/03/ Fee, General Use FGNFC 05/03/ Fee, Sustainability FSSTN 05/03/ Fee, Student Activity Res 1 FSA1C 05/03/ Fee, Student Accident Ins FS1FC 08/03/ Fee, Parking Permit PKPT 05/03/ Tuition, College Credit TUI1C 05/13/ Fee, General Use FGNFC 05/13/ Fee, Sustainability FSSTN 05/13/ Fee, Student Activity Res 1 FSA1C 05/13/ Fee, Student Accident Ins FS1FC 05/13/ Payment, Student PYMTS 05/20/ Term Balance: 0.00 Tuition and fees total Qualifying expenses for scholarships and grants are 836. Qualifying expenses for American Opportunity credit are

18 Account Activity View transaction by term: Fall 2018: Select Fall 2018 Account Activity To sort, click on the desired column header Description Code Date Amount() Tuition, College Credit TUI1C 07/11/ Fee, General Use FGNFC 07/11/ Fee, Sustainability FSSTN 07/11/ Fee, Student Activity Res 1 FSA1C 07/11/ Fee, Student Accident Ins FSIFC 07/11/ Fee, Parking Permit PKPT 07/11/ Direct Subsidized Loan DRSLY 08/25/ Federal Pell Grant FPELL 08/25/ Texas Public Education Grant TPEG 08/25/ Capital Idea CPID 08/28/ Touchnet Payment TN 08/28/ Tuition, College Credit TUI1C 12/03/ Fee, General Use FGNFC 12/03/ Fee, Sustainability FSSTN 12/03/ Fee, Student Activity Res 1 FSA1C 12/03/ Fee, Student Accident Ins FSIFC 12/03/ Fee, Parking Permit PKPT 12/03/ Term Balance: Tuition and fees total Qualifying expenses for scholarships and grants are Qualifying expenses for American Opportunity credit are 1,632. Grants that qualify for living expenses total 750. Student registered for the Spring 2019 semester in December 2018 but did not pay any of expenses so they cannot be included in qualifying expenses. 16

19 Education Expenses Worksheet for 2018 Tax Year American Opportunity Credit (AOC) X Lifetime Learning Credit (LLC) 1 Selected AOC Attach a copy of the student s account statement for each semester (accessible via school s online portal) to this worksheet. Student s name from Form 1098-T: Ann Harvard Total Qualified Tuition & Fees for Scholarship/Grant: Spring ,314 Summer Fall ,682 Qualified Tuition & Fees for AOC/LLC: Book Expenses: 800 (AOC and LLC) Supplies Expenses: 409 (AOC only) Grants: Can be used for living expenses. Cannot be used for living expenses. Scholarships: Can be used for living expenses. Cannot be used for living expenses. 4,000 Spring ,224 Summer Fall ,632 1, Total Qualified Tuition, Fees, Books & Supplies for scholarships/grants 5,041 Qualified Tuition, Fees, Books & Supplies for AOC/LLC 4,851 Total Grants and Scholarships Qualified Expenses Available for Credit Taxable Scholarships and Grants Form 1099-Q Distributions: Enter only if total distribution used for qualified expenses. 1,500 3,351 Your 2018 tax return included educational expenses Based on your education expenses, scholarships and grants reported on your Form 1098-T, and information found on your account activity statement from your school, we have filed your education credit in the following manner: in available qualified education expenses were included in your tax return on Form 8863 to calculate your education credit. 0 0 Includes amounts paid in 2018 for Spring 2019 Total qualified expenses for AOC/LLC that exceed grants and scholarship Total scholarships/grants that exceed qualified expenses 459 must be included on the student s return as scholarship income on Form (Excess Scholarships above plus Line 10 below) 17

20 Transferring scholarships and grants to student as income Are the available education expenses 4, or more for AOC or 10,000 or more for LLC? If yes, then there is no benefit in transferring scholarships and/or grants to the student's income. If no, then do any of the scholarships or grants allow their funds to be used for living expenses? Use the link below to help you decide. Which scholarships and grants can be used for living expenses? Determining amount of scholarship/grant to transfer to income Maximum amount of expenses for calculating credit. 4,000 for AOC or 10,000 for LLC Total qualified expenses for AOC/LLC. Expenses that qualify for scholarships/grants but not AOC/LLC. From table on page 1: total qualified expenses for scholarships/grants minus total qualified expenses for AOC/LLC Scholarships/Grants not available for living expenses. Scholarship/grant monies not available for living expenses that are now available to pay AOC/LLC expenses. Line 4 minus Line 3, put 0 if negative Qualified AOC/LLC expenses available for the credit. Line 2 minus Line 5. Put 0 if negative Scholarships/grants available for transfer to income. Scholarships/grants available for living expenses (line 4) minus Taxable Scholarship (table on page 1) Expenses that exceed credit limit. Line 6 minus Line 1, put 0 if negative Scholarship/grant expenses not paid by scholarship/grant monies that are not available for living expenses. Line 3 minus Line 4. Put 0 if negative Amount of scholarship/grant to transfer to student as income Line 7 minus Line 8 and Line 9. Put 0 if negative Line 1 4,000 Line 2 4,851 Line Line 4 0 Line 5 0 Line 6 4,851 Line 7 1,500 Line Line Line Comment/Notes: 18

21 Deparment of Treasury Internal Revenue Service Kansas City Service Center-SP Kansas City, MO Notice CP01A Tax Year 2018 Notice Date January 8, 2019 To contact us XXX-XXXX Page 1 of 2 Bradley J. Harvard 4587 Magnolia Lane Austin, TX Important information about filing your 2018 federal tax return We assigned you an Identity Protection Personal Identification Number Our records show that you either: were previously a victim of identity theft or, notified IRS that you experienced an incident that could potentially expose you to identity theft or requested an identity protection personal identification number (IP PIN). We placed an indicator on your account and assigned you an IP PIN for calendar year The IP PIN helps verify a return filed with your social security number was filed by you. You ll need to use this IP PIN when filing and Forms 1040 during the calendar year beginning in January. If you fail to use your assigned IP PIN, we could reject your return delay the processing of your return. What you need to do Keep this letter in a safe place. You ll need it to prepare your tax return. When you file your federal tax return, enter the IP PIN in the correct place: If filing electronically, your tax software or practitioner will tell you when and where to enter it If filing a paper return, enter your IP PIN in the gray box marked Identity Protection PIN to the right of the Spouse s signature and occupation. Note: The second spouse s IP PIN still protects his or her account even though it s not entered on a jointly filed paper return. If you don t have to file a tax return, you won t need to use your IP PIN. We still protect your account from fraudulent filing. Your assigned 2018 IP PIN is: What to remember about your IP PIN You must use this IP PIN to confirm your identity on your current tax return and any prior year returns filed during the calendar year. We ll send you a new IP PIN each December by postal mail. Therefore, be sure to file Form 8822, Change of Address, if you change your mailing address. Keep your number private and don t give it to anyone other than a tax professional filing your tax return. The tax preparer will need to include your IP PIN on your return. Bring this letter with you. The IP PIN is only used to file your return. It has no other purpose. The 6-digit IP PIN is sometimes confused with the 5-digit e-file PIN; they re not the same or interchangeable. As an IP PIN recipient, you don t need to file a Form 14039, Identity Theft Affidavit, to notify us you are a victim of identity theft. 19

22 Deparment of Treasury Internal Revenue Service Kansas City Service Center-SP Kansas City, MO Notice CP01A Tax Year 2018 Notice Date January 8, 2019 To contact us XXX-XXXX Page 1 of 2 Annette C. Harvard 4587 Magnolia Lane Austin, TX Important information about filing your 2018 federal tax return We assigned you an Identity Protection Personal Identification Number Our records show that you either: were previously a victim of identity theft or, notified IRS that you experienced an incident that could potentially expose you to identity theft or requested an identity protection personal identification number (IP PIN). We placed an indicator on your account and assigned you an IP PIN for calendar year The IP PIN helps verify a return filed with your social security number was filed by you. You ll need to use this IP PIN when filing and Forms 1040 during the calendar year beginning in January. If you fail to use your assigned IP PIN, we could reject your return delay the processing of your return. What you need to do Keep this letter in a safe place. You ll need it to prepare your tax return. When you file your federal tax return, enter the IP PIN in the correct place: If filing electronically, your tax software or practitioner will tell you when and where to enter it If filing a paper return, enter your IP PIN in the gray box marked Identity Protection PIN to the right of the Spouse s signature and occupation. Note: The second spouse s IP PIN still protects his or her account even though it s not entered on a jointly filed paper return. If you don t have to file a tax return, you won t need to use your IP PIN. We still protect your account from fraudulent filing. Your assigned 2018 IP PIN is: What to remember about your IP PIN You must use this IP PIN to confirm your identity on your current tax return and any prior year returns filed during the calendar year. We ll send you a new IP PIN each December by postal mail. Therefore, be sure to file Form 8822, Change of Address, if you change your mailing address. Keep your number private and don t give it to anyone other than a tax professional filing your tax return. The tax preparer will need to include your IP PIN on your return. Bring this letter with you. The IP PIN is only used to file your return. It has no other purpose. The 6-digit IP PIN is sometimes confused with the 5-digit e-file PIN; they re not the same or interchangeable. As an IP PIN recipient, you don t need to file a Form 14039, Identity Theft Affidavit, to notify us you are a victim of identity theft. 20