Basic Scenarios 27

Basic Scenario 7: Warren and Shirley Graves

Directions

Using the tax software, complete the tax return, including Form 1040 and all appropri-ate forms, schedules, or worksheets. Answer the questions following the scenario.

Note: When using the Link and Learn Taxes Practice Lab, complete the Social Security numbers and employer identification numbers by replacing the Xs with your User ID. In classroom situations, replace the Xs with the numbers provided by your instructor.

Interview Notes

• Warren and Shirley want to file a joint return.

• Warren called County Bank and confirmed that in 2015 they received $9 of interest income in their savings account with no withholding and no early withdrawal penalty.

• Warren was covered by Medicare Parts A and B for the whole year. Shirley had no health insurance all year, and does not qualify for any coverage exemptions.

Basic Scenarios28

Basic Scenarios 29

Basic Scenarios30

Basic Scenarios 31

Basic Scenarios32

Basic Scenarios 33

Basic Scenarios34