· web viewalso save the tax return as a , so that you can look at the return outside of the...

2010 H&R Block At Home Lab Instructions, Whittenburg & Altus-Buller

Ch. 1 Bayan

First you need to install H&R Block At Home - install Premium.

Open H&R Block 2010, and update it.

Select the Start a Return button.

From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter a date of birth. Enter the occupation as a noun.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040.

Select Close Form, and then to try for the Making Work Pay credit, open a Schedule M, and in the Economic Recovery Payments section, select No for question a.

Close Forms Central, select the Federal tab, and then select Misc. Select GoTo for Choosing Form 1040, 1040A, 1040EZ, and select Form 1040EZ.

Save the file by selecting File/Save from the menu.

Also save the tax return as a PDF file, so that you can look at the return outside of the software program. Select File/Save As PDF. The software will save two returns - one For Filing and one For Records. Review the Tax Return for Filing.

The software will not generate the Worksheet for Line 8, Making work pay credit, but you can display Schedule M.

Don't be afraid to explore the software - you can't hurt anything!

Ch. 1 Lazo



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter dates of birth. Enter the occupations as nouns.

Select Close Form, and then fill in a Dependents Worksheet, found under Form 1040, for Lyle. Enter a date of birth for Lyle so that he was 18 in 2010.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Leon.

Select Close Form, and then to try for the Making Work Pay credit, open a Schedule M, and in the Economic Recovery Payments section, select No for questions a and b.

Close Forms Central, select the Federal tab, and then select Misc. Select GoTo for Choosing Form 1040, 1040A, 1040EZ, and select Form 1040A.


Then File/Save As PDF. The software will save two returns - one For Filing and one For Records. Review the Tax Return for Filing.

Ch. 1 Boxer




Select Close Form, and then fill out a Dependents Worksheet, found under Form 1040, for Helen. Enter a date of birth for Helen so that she was 18 in 2010.



Boxer has some interest income, so you need to fill out a Form 1099-INT/OID. Select Close Form, and open a Form 1099-INT/OID, found under Schedule B.




Ch. 1 Incisor




Select Close Form, and then fill out a Dependents Worksheet, found under Form 1040, for Ira. Enter a date of birth for Ira so that he was 17 in 2010.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Ivan.


The Incisors have some interest income, so you need to fill out a Form 1099-INT/OID. Select Close Form, and open a Form 1099-INT/OID, found under Schedule B.

Close Forms Central.

This will be a Form 1040, so you don't need to choose the Form - Form 1040 is the default.

Save the file by selecting File/Save As from the menu. Name the return Ivan Incisor Ch 1 2010 Tax Return.


Ch. 2 Hair




Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for each person.


The Hairs have some other types of income besides wages. You need to fill out a separate Form 1099-INT/OID for each interest amount, and a separate Form 1099-DIV for each dividend.

The interest from the City of St. Louis bonds is municipal, tax-exempt interest, so be sure to enter it in the right spot.

Fill out a Form 1099-G, found under Form 1040, for the unemployment compensation.




The software will not generate a Qualified Dividends and Capital Gain Tax Worksheet as part of the return, but you can view it if you'd like – open a Dividends/Capital Gain Worksheet.

Ch. 2 Gomez



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter dates of birth. Enter the occupations as nouns - look at their employers and be creative!

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for each person.


Fill out a Form 1099-INT/OID for the interest income and a W-2G Worksheet for the lottery winnings.

To enter the alimony paid, open an Attachments Worksheet, found under Form 1040, and enter the information on Page 2.


This is a Form 1040, so you don't need to choose the Form - Form 1040 is the default.



Ch. 2 Conch



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter dates of birth. The address for Conch and Duval includes an apartment number - find the special spot for it. Enter the occupations as nouns - look at their employers and be creative!

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Carl.


Fill out a Form 1099-INT/OID for the interest income, and a Form 1099-DIV for the dividend income.

Fill out a Form 1099-G for the unemployment compensation, and a Form W-2G Worksheet for the raffle prize.





Ch. 2 Incisor


From the menu, select File/Open Saved Return, and select Open for Ivan Incisor Ch 1 2010 Tax Return.

The Incisors have more interest income, so fill out a separate Form 1099-INT/OID for each interest amount. The interest from the Washington State bonds is municipal, tax-exempt interest, so be sure to enter it in the right spot.

Also fill out a separate Form 1099-DIV for each dividend.

Fill out a Form 1099-G for the unemployment compensation and a W-2G Worksheet for the gambling winnings.






The software will not generate a Qualified Dividends and Capital Gain Tax Worksheet as part of the return, but you can view it if you'd like – open a Schedule D, and see the Schedule D Tax Worksheet below line 22. The software will not generate a Schedule B because it is not required.

Ch. 3 Bunge



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter dates of birth. The address includes an apartment number - find the special spot for it. Enter the occupations as nouns.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Walter.


For Schedule C, open a Schedule C and at the top, select Self or Spouse, depending on whether you listed Rebecca as the taxpayer or as the spouse on the Background Information Worksheet. Enter a description for A. For B, choose Retail Stores and Dealers, and for Code, choose Book stores. For D, enter 99-9999999. For G, check yes. Check box 32a, 33a Cost and 34 No. Enter the information and amounts.

For the NOL, enter it as a negative number on the Attachments Worksheet, found under Form 1040, on the Mini-Worksheet for Line 16.

For Schedule E, open a Schedule E Rentals and Royalties Worksheet. In Part I, line 1a, enter the State, and for Kind of property, enter Ski Condo. Check the dwelling and second home boxes. In Part II, lines 1a and 1c, enter the days rented and the days of personal use, and the software will be able to allocate the expenses for you. In Part IV, check box 4 for active participation. In Parts V and VI, enter the income and expenses in the first column. For interest, in Part VI, line 12a, right-click in the first amount column, select Override, check the Override box, enter 4,800 and select OK. Enter the Association Dues on line 19.

For Rebecca's loss on the loan to her friend, open a Capital Gains and Losses Worksheet, found under Schedule D. For a, enter Non-Business Bad Debt. For b, enter 1/1/2010, and for c, enter 12/31/2010. For d, enter 0, and for e, enter 20,000.

Fill out a W-2G Worksheet for the gambling winnings.

To disregard the Alternative Minimum Tax for now, open Form 1040 and right-click on line 45. Select Override, check the Override box, enter 0 and select OK.





In addition to the tax forms in the text, the software will generate a Form 6251, a Form 8582, a Form 1040-V, and an Attachments Worksheet.

Ch. 3 Beeper



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter a date of birth. The address includes an apartment number - find the special spot for it. Enter the occupation as a noun.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for George.


Beeper has a rental, so open a Schedule E Rentals and Royalties Worksheet. For Part I, line 1a, enter the address, and for Kind of property, enter Residential Rental. Check the dwelling box. For Part II, line 1a, the days rented are 365. In Part IV, check box 4 for active participation. In Parts V and VI, enter the income and expenses in the first column.

For the rollover, open a 1099-R Worksheet, and enter 67,000 in box 1, and 0 in box 2a. In the Rollovers section, Part D Other Rollovers, check box 1.





The software will not generate a Schedule M because Beeper doesn’t have a Making Work Pay credit.

Ch. 3 Pate




For the pension, open a 1099-R Worksheet, and enter 61,200 in box 1 and in box 2a. Enter the 7,350 federal income tax withheld in box 4.

Pate has a rental, so open a Schedule E Rentals and Royalties Worksheet. For Part I, line 1a, enter the address, and for Kind of property, enter Residential Rental. Check the dwelling box. For Part II, line 1a, the days rented are 365. In Part IV, check box 4 for active participation. In Parts V and VI, enter the income and expenses in the first column.

For the 401(k) distribution, open another 1099-R Worksheet, and enter 75,000 in box 1, and 25,000 in box 2a. (She only reinvested 50,000 of the 75,000 distribution.) Also enter the 15,000 federal income tax withheld in box 4, and in the Rollovers section, Part D Other Rollovers, enter the 50,000 that was rolled over on line 2.





Ch. 3 Incisor



The Incisors have a rental, so open a Schedule E Rentals and Royalties Worksheet. For Part I, line 1a, enter the address, and for Kind of property, enter Rental Beach House. Check the dwelling box. For Part II, line 1a, the days rented are 365. In Part IV, check box 4 for active participation. In Parts V and VI, enter the income and expenses in the first column.

For the IRA contributions, open an IRA Contribution Worksheet, and for Part B, line 2, enter 5,000 for Ivan and 5,000 for Irene.

For Irene's rollover, open a 1099-R Worksheet, and enter 24,000 in box 1 and 0 in box 2a. For 2b check the Total Distrib box, and in the Rollovers section, Part D Other Rollovers, check box 1.





The software will not generate a Qualified Dividends and Capital Gain Tax Worksheet as part of the return, but you can view it if you'd like - open a Schedule D, and see the Schedule D Tax Worksheet below line 22. The software will not generate a Schedule B because it is not required.

Ch. 4 Booth




Select Close Form, and then fill in a Dependents Worksheet, found under Form 1040, for each of Ken’s parents. Enter dates of birth for Ken's parents.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Ken and one for Amy.


The Booths have some interest income, so you need to fill out a Form 1099-INT/OID.

For the Booths’ moving expenses, use Form 3903.





Ch. 4 Long




Select Close Form, and then fill in a Dependents Worksheet, found under Form 1040, for each of the children. Enter dates of birth for the children.


The Longs have some interest income, so you need to fill out a Form 1099-INT/OID. Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

For Russell’s Schedule C, fill in a description for A. For B, Business category is Prof'l, Scientific, &Tech Svces, and the Code is Landscape architecture services. Check Yes for G, and enter the income and expenses. Meals and entertainment go on the Mini-Worksheet for Meal and

Entertainment Expenses, line a. The Equipment rent goes on the Mini-Worksheet for Rental and Lease Expenses for Vehicles, Machinery, and Equipment, line b. Check the box on line 32a.

For the home office, open a Form 8829, and in Part I enter the square footage on lines 1 and 2. For Part II, on the Mini-Worksheet for Line 8 for Self-Employed, enter 100% on line 1a. Enter the rent on line 18, second column, and the utilities on line 20, second column.

To record the estimated federal income tax payments, open the Background Worksheet, and for line 5a, enter 4/15/2010 and the amount.





The software will not generate a Schedule M because the Longs don’t have a Making Work Pay credit.

Ch. 4 Freeweights




Select Close Form, and then fill in a Dependents Worksheet, found under Form 1040, for Arnold. Enter a date of birth for Arnold.


Freeweights has some interest income, and you need to fill out a separate Form 1099-INT/OID for each interest amount. Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

For Freeweights' Schedule C, fill in a description for A. For B, Business category is Personal & Laundry Services, and the Code is Other personal care services. Check Yes for G, and enter the

income and expenses. The Equipment rent goes on the Mini-Worksheet for Rental and Lease Expenses for Vehicles, Machinery, and Equipment, line b. Check the box on line 32a.

For the home office, open a Form 8829, and in Part I enter the square footage on lines 1 and 2. For Part II, on the Mini-Worksheet for Line 8 for Self-Employed, enter 100% on line 1a. Enter the rent on line 18, second column, and the utilities on line 20, second column.

To record the estimated federal income tax payments, open the Background Worksheet, and on 5a, enter 4/15/2010 and the amount.





The software will not generate a Schedule M because Freeweights doesn’t have a Making Work Pay credit.

Ch. 4 Incisor



For Irene's Schedule C, fill in a description for A. For B, Business category is Retail Stores and Dealers, and the Code is Automotive parts, accessories, & tire stores. Check Yes for G, and check the box for H. Enter the income and expenses. Meals go on the Mini-Worksheet for Meal and Entertainment Expenses, line a. Check the box on line 32a.

For Part III, Cost of Goods Sold, line 33, check box a Cost, and for line 34 check No.

To enter the information on the vehicle, open a Vehicle Worksheet, found under Form 4562. For Part 1, line b, select Schedule C. For Part 2, line a, enter 9/1/2010, and for line d, enter 4. For f, enter 1,634, for g, enter 5,000, and for i, enter 17,000. For Part 6, check line a. For Part 8, line c, check Standard mileage. And for Part 9, answer Y for Yes for lines a, b, d and e.






Ch. 5 Williams






Williams has some interest income, so fill out a Form 1099-INT/OID. Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.


Williams itemizes. For Schedule A, the real estate taxes can be entered directly on Schedule A, on the Mini-Worksheet for Line 6, Real Estate Taxes, on line d i.

Enter the state and local sales taxes directly on Schedule A, on line b of the Mini-Worksheet for Line 5, State and Local Sales Taxes. Check the box for line 5b.

Total the medical expenses, and enter them directly on Schedule A, on the Mini-Worksheet for Line 1, Medical Expenses, on line a.

Enter the income tax return preparation fee directly on Schedule A, on line 22.

For the charitable contributions, open a Charitable Donations Worksheet. In Part 1, on line 1a, enter each charity name and amount, and for Type, select 50% limit.

Enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and for Name of lender, enter Reno Bank & Trust. Answer Yes to the question about paying this interest to a financial institution, and enter the amount in Part A, on line 1.





The software will not generate a Schedule M because Williams doesn’t have a Making Work Pay credit.

Ch. 5 Jones






Jones has some interest income, so fill out a Form 1099-INT/OID. Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

You can enter Jones' alimony directly onto the Form 1040.

Jones itemizes. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.

The real estate taxes can be entered directly on Schedule A, on the Mini-Worksheet for Line 6, Real Estate Taxes, on line d i.




On Schedule A, you have to combine the job-hunting expenses and the union dues amounts on the Mini-Worksheet for line 21, on line b, but on line 21 itself, list each separately - description and amount - in the description box.

For Jones' theft loss, open a Form 4684. Enter the event and the date occurred. For line 1 enter the type of property, the location and the date acquired - make it up!





In addition to the tax forms in the text, the software will generate a blank Page 2 for Form 4684.

Ch. 5 Fuji






Fuji has some interest income, so fill out a Form 1099-INT/OID.


Fuji itemizes. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.





On Schedule A, you have to enter the job-hunting expense amount on the Mini-Worksheet for line 21, on line b, but you enter the description on line 21 itself, in the description box.

For the charitable contribution, open a Charitable Donations Worksheet. In Part 1, on line 1a, enter the charity name and amount, and for Type, select 50% limit.

For Fuji's theft loss, open a Form 4684. Enter the event and the date occurred. For line 1 enter the type of property, the location and the date acquired - make it up!





The software will not generate a Schedule B or a Form 4684, because they are not required.

Ch. 5 Incisor



The Incisors itemize. For Schedule A, for the charitable contributions in cash, open a Charitable Donations Worksheet. In Part 1, on line 1a, enter the charity name and amount, and for Type, select 50% limit.

For the charitable contribution to the Salvation Army, open Noncash or Item Donations, and enter the information in Part A, on lines 1 and 3. Enter the amount on line 5, and for line 6, select Thrift shop value.


Ivan's student loan interest is an adjustment on Form 1040, not an itemized deduction. Open a Form 1098-E, found under Form 1040, and answer No to the question at the top about another claiming you as a dependent. Enter the amount on line 1, and check the box between line1 and line 1a.

For the investment interest, check the box for Line 14: Form 4952 Not Needed? in the area above line 14, and enter the amount on Schedule A, line 14.

There are two home mortgage interest amounts - you can combine the amounts on one Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1. Also enter the amount of the auto loan interest on Schedule A, in the Alternative Minimum Tax (AMT) Adjustments area below line 13, on line a.


Enter the safe deposit box rental amount on the Mini-Worksheet for Line 23, on line a.



On Schedule A, you have to enter the tooth polishing seminar expense amount on the Mini-Worksheet for line 21, on line b, but you enter the description on line 21 itself, in the description box. You don't need a Form 2106, because there is no travel, transportation, meals or entertainment involved.

For the theft loss, open a Form 4684. Enter the event and the date occurred. For line 1 enter the type of property, the location and the date acquired - make it up!







Ch. 6 Jasper



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter dates of birth. Don't forget their occupations - enter them as nouns.

Select Close Form, and then fill in a Dependents Worksheet, found under Form 1040, for Sam. Enter a date of birth for Sam.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for each of the parents. Be sure to enter their state income tax withheld.


For the interest income, fill out a Form 1099-INT/OID. Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

The Jaspers itemize. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.


For the state income taxes paid in 2010 (for 2009), open a State and Local Income Tax Payments Worksheet and enter the amount in Part V, on line 9.

Open a Charitable Donations Worksheet and enter the amount of their contribution to the church.


The income tax return preparation fee can also be entered directly on Schedule A, on line 22.

For the union dues, on Schedule A, find the Mini-Worksheet for Line 21, Employee Business Expenses (right above line 21), and enter the amount on line b. Enter the description in the description box for line 21.


To get the Child and Dependent Care Credit, rather than opening forms, go through a section of the interview. Select the Federal tab, and then Credits. Next to Child and Dependent Care Expenses, select Go To. In the Child and Dependent Care Expenses window, select Yes and then Next, and in the next window select No and then Next. In the Child and Dependent Care Providers window, select Add Provider, and make up a name and Tax ID# in one of the formats shown - 91-1111111 works. Enter the expenses paid and select Next. In the next window confirm that Sam is checked and select Next. In the next window confirm the care provider's information and select Next. In the next window select Finished.




Ch. 6 Jackson




Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040. Be sure to enter his state income tax withheld.


Jackson has some interest income, so fill out a separate Form 1099-INT/OID for each amount. For the private activity bond interest, enter the amount in box 8 and in box 9. Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

Jackson itemizes. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.

For the state income taxes paid in 2010 (for 2007), open a State and Local Income Tax Payments Worksheet and enter the information in Part V, on line 9.



You can enter the accounting fees on the Mini-Worksheet for Line 23, on line m.

Open a Charitable Donations Worksheet and for Part 1, on line 1a, enter each charity name and amount. For Type, select 50% limit.





In addition to the tax forms in the text, the software will generate a blank Page 2 for Form 6251 and a Form 1040-V.

The software will not generate a Schedule M because Jackson doesn’t have a Making Work Pay credit.

Ch. 6 Pham






Pham has some interest income, so fill out a separate Form 1099-INT/OID for each amount. For the private activity bond interest, enter the amount in box 8 and in box 9. Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

Pham itemizes. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. You can combine the two amounts on one worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1. Also enter the interest on the home equity loan used to purchase a Lexus on Schedule A, in the Alternative Minimum Tax (AMT) Adjustments area below line 13, on line a.

The deductible portion of the California auto registration tax can be entered directly on Schedule A, on the Mini-Worksheet for Line 8, Personal property Taxes, on line b.

For the state income taxes paid in 2010 (for 2009), open a State and Local Income Tax Payments Worksheet and enter the information in Part V, on line 9.



You can enter the accounting fees on the Mini-Worksheet for Line 23, on line m.

Open a Charitable Donations Worksheet and for Part 1, on line 1a, enter each charity name and amount. For Type, select 50% limit.





In addition to the tax forms in the text, the software will generate a blank Page 2 for Form 6251 and a Form 1040-V.

The software will not generate a Schedule M because Pham doesn’t have a Making Work Pay credit.

Ch. 6 Incisor



Fill out a new Form 1099-INT/OID for the private activity bond interest, and enter the amount in box 8 and in box 9.

On Ivan's W-2 Worksheet, change the amount of federal income tax withholding.







Ch. 7 Hopson



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have.

For Sherry's Schedule C, fill in a description for A. For B, Business category is Retail Stores and Dealers, and the Code is Family clothing stores. Check Accrual for F, and check Yes for G. Enter the income and expenses.

For Part III, Cost of Goods Sold, line 33, check box a Cost, and for line 34 check No.

To enter the information on the vehicle for Form 4562, open a Depreciation Worksheet, found under Form 4562. On line 1, enter the description, on line 2a, select Schedule C, and on line 2b, select Copy 1. On line 3a, enter 6/1/2010, and on line 4a, select the type of asset. On line 8 a i, enter the cost.

To enter the information on the desk and file cabinets for Form 4562, open another Depreciation Worksheet. On line 1, enter the description, on line 2a, select Schedule C, and on line 2b, select Copy 1. On line 3a, enter 6/1/2010, and on line 4a, select the type of asset. On line 8 a i, enter the cost.

Open another Depreciation Worksheet for the computer. On line 1, enter the description, on line 2a, select Schedule C, and on line 2b, select Copy 1. On line 3a, enter 6/1/2010, and on line 4a, select the type of asset. On line 8 a i, enter the cost.




Then File/Save As PDF. The software will save two returns - one For Filing and one For Records. Review the Schedule C and the Form 4562 in the Tax Return for Filing.

In addition to the tax forms in the text, the software will generate a Form 1040-V.

Ch. 7 Williams




Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Larry.


Fill out a Form 1099-INT/OID for the interest income, and enter the early withdrawal penalty in box 2.

The Williams’ itemize. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.




For the contribution of the painting to the museum, open Noncash or Item Donations and fill in the information for Part A. The property type for line 8 is Capital gain 30% limit. For Part D, select No for all three questions, and fill in the information for Part E.

For the other three charitable contributions, open a Charitable Donations Worksheet and for Part 1, on line 1a, enter each charity name and amount. For Type, select 50% limit.

Enter the safe deposit box rental amount on the Mini-Worksheet for Line 23, on line a.


The loss on the sale of the land is disallowed because it's a sale to a related party, and it's not reported.

For the IRA contributions, open an IRA Contribution Worksheet and for part B line 2 enter 5,000 for Larry and 5,000 for Lisa.





In addition to the tax forms in the text, the software will generate a Form 8283.

The software will not generate a Schedule B or a Schedule D, because they are not required.

Ch. 7 Incisor



To remove the private activity bond interest income, open the Form 1099-INT/OID for that interest and delete the form.

To enter the information on the building and land for Form 4562, open a Depreciation Worksheet. On line 1, enter the description, on line 2a, select Schedule C, and on line 2b, select Copy 1. On line 3a, enter 12/12/2010, and on line 4a, select the type of asset. On line 8 a i, enter the total cost of the building and land, and on line 8 a ii, enter the cost of the land.

For the stock sales, open a Capital Gains and Losses Worksheet. Record the information on the sale to Ivan's uncle. The loss on the sale of stock to Ivan's sister is disallowed because it's a sale to a related party, and it's not reported.





In addition to the tax forms in the text, the software will generate a Schedule D-1, page 2.

The software will not generate a Qualified Dividends and Capital Gain Tax Worksheet as part of the return, but you can view it if you'd like - open a Schedule D, and see the Schedule D Tax Worksheet below line 22. The software will not generate a Schedule B because it is not required. The software will not generate a Form 4684 because the Incisors no longer have a deductible casualty loss.

Ch. 8 Ramos



From the menu, select Forms/Open Forms, and start by filling in a Background Worksheet, found under Form 1040. Only fill in the information you have, but you will need to enter a date

of birth. The software won’t accept the social security number given in the text, so change it to 576-23-5132. Enter the occupation as a noun.



Ramos has interest and dividend income, so fill out a Form 1099-INT/OID and a Form 1099-DIV. Since the amounts are over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

Ramos itemizes. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.




For the charitable contribution, open a Charitable Donations Worksheet and for Part 1, on line 1a, enter the amount. For Type, select 50% limit.

For the stock sales, open a Capital Gains and Losses Worksheet and record the information for each sale.





The software will not generate a Qualified Dividends and Capital Gain Tax Worksheet as part of the return, but you can view it if you'd like - open a Schedule D, and see the Schedule D Tax Worksheet below line 22.

Ch. 8 Kennedy




Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040. Be sure to enter her state income tax withheld.


Kennedy has interest and dividend income, so fill out a Form 1099-INT/OID and a Form 1099-DIV. Since the amount of taxable dividends is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check the N box for No.

For the state income taxes paid in 2010 (for 2009), open a State and Local Income Tax Payments Worksheet, found under Schedule A, and enter the information in Part V, on line 9.

Kennedy itemizes. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.





For the stock sale, open a Capital Gains and Losses Worksheet, found under Schedule D, and record the information for the sale.

The sale of the land is an installment sale, so open a Form 6252. Enter the information for lines 1, 2a and 2b, and for line 3, select N for No. For Part I, enter the information for lines 5, 8 and 21. You don't need to enter any information on the note.






Ch. 8 Incisor



For the securities sales, open the Capital Gains and Losses Worksheet and record the information for each sale.

For the long-term capital gain distribution, open the Form 1099-DIV for the Mango mutual fund and enter the amount in box 2a.

The sale of the land is an installment sale, so open a Form 6252. Enter the information for lines 1, 2a and 2b, and for line 3, select N for No. For Part I, enter the information for lines 5, 8 and 21. You don't need to enter any information on the note.

For the sale of the personal residence, open a Sale of Home Worksheet, found under Schedule D. At the top, enter the dates acquired and sold. Since we don’t have the street address, just enter Principal residence for the Description of home. Enter the information for lines 1 and 3a.






The software will not generate a Form 4684 because the Incisors no longer have a deductible casualty loss.

Ch. 9 Harris






Harris has interest and dividend income, so fill out a Form 1099-INT/OIDand a Form 1099-DIV.

Harris itemizes. For Schedule A, enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.


Enter the medical expenses directly on Schedule A, on the Mini-Worksheet for Line 1, Medical Expenses, on line a.



For Schedule C, open a Schedule C and enter a description for A. For B, choose Prof'l, Scientific, &Tech Svces, and for Code, choose Offices of certified public accountants. For G, check yes. Enter the information and amounts. Enter Client meals and entertainment on the Mini-Worksheet for Meal and Entertainment Expenses, on line a.

To enter the information on the vehicle for Schedule C, open a Vehicle Worksheet, found under Form 4562. For Part 1, line a, fill in the description and for line b, select Schedule C. For line c, select Copy 1. For Part 2, line a, enter 1/1/2010, and for line d, enter 12. For line f, enter 4,600. For line g, enter 5,000, and for line i, enter 20,000. For Part 5, check the box for line a. For Part

6, check the box for line a. For Part 8, line c, check the box for Standard mileage. And for Part 9 answer Y for Yes for lines a, b, c, d and e.

To record the estimated federal income tax payments, open the Background Worksheet, and for line 5a, enter 3,000 for 4/15/2010, 6/15/2010, 9/15/2010 and 1/15/2011.





The software will not generate a Qualified Dividends and Capital Gain Tax Worksheet as part of the return, but you can view it if you'd like - open a Schedule D, and see the Schedule D Tax Worksheet below line 22. The software will not generate a Schedule B or Page 2 of Schedule SE, because they are not required.

Ch. 10 J&S Barbers

This is a partnership return, so you need to use H&R Block At Home, Business - install Business.

Open H&R Block Business 2010, and update it.

Select Create a new return, and select Next.

Select Partnership return, and select Next.

Select Whole Form, and enter the information for A, B and C. For C, select the JumpTo Linked Field box to the right, and for Select a principal activity, use the drop list to select Other Services. Then check the code for Barber Shops under Personal and Laundry Services. To return to the Form 1065, select Close Form, Return to Interview, and then Whole Form.

Enter the partnership name and address, and enter the information for D - use 91-6767676 for the employer identification number. For E, enter 1/1/2010, and for G, select (1) Initial return. For H, select (2) Accrual.

Now you're ready to enter the amounts for income and deductions. Enter gross income on line 1a.

For salaries, select the JumpTo Linked Field box for line 9 and enter the amount on line 1. Return to the Form 1065. Enter the rent on line 13, and for line 14, select the JumpTo Linked Field box and enter the amount on the line for payroll tax. Return to the Form 1065.

To enter the depreciation, begin entering the amount on line 16a. The Calculated Field dialog box will open, and select Override. Then you can finish entering the amount. The area will turn pink because of the override.

To enter the amount for supplies, select the JumpTo Linked Field box for line 20 and enter the amount on the line for supplies. Return to the Form 1065 and review page 1.

From the tabs at the bottom of the window, select 2 for page 2. For Schedule B, check box 1a for Domestic general partnership. For 3a, select No, and for 3b, select Yes.

Now you're ready to enter the information for the two partners for Schedule B-1. Select Close Form, and at the top, under the Federal tab, select Sch K-1. The Take Me To... dialog box will open, and select Go To...

Select Whole Form, and at the bottom, select the Input tab. Notice the number 1 at the top, for the first record - the first partner. Enter the name, social security number and address for Emily Jackson. In the Percentages section, enter 50 for Profit. For G, select General partner. For I, select Active Individual. For J, in column i, override all three percentages to zero. For K, enter 0 for Qualified nonrecourse financing, and 25,875 for Other. For L, enter 20,000 for (b) Capital contributed during year (cash), and 80,000 for (d) Withdrawals and distributions (cash).

At the top, select Add New Record and enter the name, social security number and address for James Stewart. In the Percentages section, enter 50 for Profit. For G, select General partner. For I, select Active Individual. For J, in column i, override all three percentages to zero. For K, enter 0 for Qualified nonrecourse financing, and 25,875 for Other. For L, enter 20,000 for (b) Capital contributed during year (cash), and 80,000 for (d) Withdrawals and distributions (cash).

Now select the Global Info tab at the bottom. Under K-1 Options, for L, select Tax Basis. Select Close Form.

At the top, under the Federal tab, select Company. The Take Me To... dialog box will open. Highlight Details for Schedule B, Line 3b, and select the Go To button. Select Whole Form, and then, in the Select Partner Name column, select Emily Jackson. On the next line, select James Stewart. Select Close Form.

At the top, under the Federal tab, select Company. The Take Me To... dialog box will open. Select the Go To button, and then select Whole Form.

From the tabs at the bottom of the window, select 2 for page 2. For lines 4a and 4b, select No.

From the tabs at the bottom of the window, select 3 for page 3. Select No for lines 5, 6d, 7, 8, 9, 10, 11, 12a, 12b, 12c and 14.

From the tabs at the bottom of the window, select 4 for page 4. To enter the information about the capital loss, select the JumpTo Linked Field box for line 9a. Enter 1/1/2000 for the date acquired and 1/1/2010 for the date sold. Enter 0 for the sales price and 2,000 for the cost. Return to the Form 1065.

From the tabs at the bottom of the window, select 4 for page 4. To enter the information about the charitable contributions, select the JumpTo Linked Field box for line 13a, and enter the amount for line A. Return to the Form 1065.

From the tabs at the bottom of the window, select 4 for page 4. Select the JumpTo Linked Field box for line 19a, and enter 160,000 on line A, Distributions of cash. Return to the Form 1065.

From the tabs at the bottom of the window, select 5 for page 5. For Schedule L, select the JumpTo Linked Field for line 1, column (d). Select Sch L – Balance Sheet, and in the Ending column, enter the amounts for cash on line 1, accounts receivable on line 2a, equipment on line 9a, accumulated depreciation on line 9b, accounts payable on line 15, and notes payable on line 19.

Save the file by selecting File/Save Return from the menu. Then back it up by selecting File/Backup Return...

To save the return in PDF format, select File/Print... from the menu, and then select the PDF icon. Review the tax return.

Ch.11 Olive - C Corporation



Select C corporation return, and select Next.

Select Whole Form, and enter the name of the corporation.

For C, enter 1/1/2010, and for E, select (1) Initial return.


To enter the dividends, select the JumpTo Linked Field box for line 4, and for Schedule C, enter the amount on line 1, in column (a).

To enter the information for Schedule A, Cost of Goods Sold, enter 185,000 on line 2, and 80,000 on line 7. We know that the ending inventory is 80,000 from the balance sheet information that is given in the text, so we can assume that purchases were 185,000, to make cost of goods sold the 105,000 that is given in the text. For line 9a, select (i) cost, for line 9e, select No, and for line 9f, select No.

Scroll down to Schedule E, and for line 1, select the JumpTo Linked Field box for column (f). Enter the amount for compensation of officers in the last column. To return to the Form 1120, select Close Form, Return to Interview, and then Whole Form.

For salaries, select the JumpTo Linked Field box for line 13 and enter the amount on line 1. Return to the Form 1120. Enter the repairs on line 14 and the bad debts on line 15. For line 17, select the JumpTo Linked Field box and enter the amount on the line for payroll tax. Return to the Form 1120.

To enter the depreciation, begin entering the amount on line 20. The Calculated Field dialog box will open, and select Override. Then you can finish entering the amount. The area will turn pink because of the override.

Enter the advertising on line 22. To enter the estimated federal income tax payments, select the JumpTo Linked Field box for line 32b and enter 1,000 for lines 1, 2, 3 and 4. Use the following dates: 4/15/2010, 6/15/2010, 9/15/2010 and 12/15/2010. Return to the Form 1120.

Notice that the federal income tax on line 31 is 3,150, and that there is an 850 overpayment on line 35. Enter 850 on line 36 to credit the overpayment to 2011 estimated tax.

From the tabs at the bottom of the window, select 3 for page 3.

For Schedule K, line 1, select box b, Accrual. Select No for lines 3 and 4a, Yes for line 4b, and No for line 5a.

Now you’re ready to enter the information for the two stockholders (from problem 2 in the text) for Schedule G. From the menu, select Forms/Open Forms, and highlight Schedule G (1120). Select the Open Forms button, and in Part II, on the first row in column (i), select the JumpTo Linked Field box. Enter the information for the two stockholders (from problem 2 in the text) on lines 1 and 2. Return to the Form 1120.


For Schedule K, select No for lines 5b, 6 and 7. For line 10, enter 2, and for line 13, select No.


For Schedule L, select the JumpTo Linked Field for line 1, column (d). Select Sch L – Balance Sheet, and in the Ending column, enter the amounts for cash on line 1, accounts receivable on line 2a, equipment on line 10a, accumulated depreciation on line 10b, accounts payable on line 16, note payable on line 20, and common stock on line 22b.



Ch. 11 Olive - S Corporation



Select S corporation return, and select Next.

Select Whole Form, and for A, enter 1/1/2010. Enter the name of the corporation.

For E, enter 1/1/2010, and for G, select Yes.


To enter the information for cost of goods sold, select the JumpTo Linked Field box for line 2, and for Schedule A, enter 185,000 on line 2, and 80,000 on line 7. We know that the ending inventory is 80,000 form the balance sheet information that is given in the text, so we can assume that purchases were 185,000, to make cost of goods sold the 105,000 that is given in the text. For line 9a, select (i) cost, for line 9e, select No, and for line 9f, select No.

For Schedule B, line 1, select box b Accrual, and select No for lines 3 and 4.

To enter the qualified dividends received, for Schedule K, line 5a, select the JumpTo Linked Field box, and enter the amount on the first line for Ordinary dividends and also on the first line for Qualified dividends. To return to Form 1120S, select Close Form, Return to Interview, and then Whole Form.

To enter the compensation of officers, select the JumpTo Linked Field for line 7, and enter the amount in the last column for line 1. Return to the Form 1120S.

For salaries, select the JumpTo Linked Field box for line 8 and enter the amount on line 1. Return to the Form 1120S. Enter the repairs on line 9 and the bad debts on line 10. For line 12,

select the JumpTo Linked Field box and enter the amount on the line for payroll tax. Return to the Form 1120S.

To enter the depreciation, begin entering the amount on line 14. The Calculated Field dialog box will open, and select Override. Then you can finish entering the amount. The area will turn pink because of the override.

Enter the advertising on line 16.


For Schedule L, select the JumpTo Linked Field for line 1, column (d). Select Sch L – Balance Sheet, and in the Ending column, enter the amounts for cash on line 1, accounts receivable on line 2a, equipment on line 10a, accumulated depreciation on line 10b, accounts payable on line 16, note payable on line 20, and common stock on line 22. Return to the Form 1120S.

From the tabs at the bottom of the window, select Options, and for Page 4, check the first box.

Now you’re ready to enter the information for the two stockholders. From the menu, select Forms/Open Forms, and highlight Schedule K1 (1120S). Select the Open Forms button, and then select Whole Form. At the bottom of the window, select the Input tab. Notice the number 1 at the top, for the first record - the first shareholder. Enter the name for Linda Holiday. In the Percentage of Stock section, enter 50 for Shareholder Percentage. At the top, select Add New Record and enter the name for Ralph Winston. In the Percentage of Stock section, enter 50 for Shareholder Percentage.



Appendix D, Arc




Select Close Form, and then fill in a Dependents Worksheet, found under Form 1040, for Billie Bob and Mary Sue. Enter dates of birth for Billie Bob and Mary Sue.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Joan. Be sure to enter her state income tax withheld.



For the estimated state income tax payments, open a State and Local Income Tax Payments Worksheet, found under Schedule A, and in Part I, on line 1, enter 4/15/2010 and the amount.

The Arcs have dividend income, so fill out a separate Form 1099-DIV for each amount.

For Schedule C, open a Schedule C and at the top, select Self or Spouse, depending on whether you listed Noah as the taxpayer or as the spouse on the Background Information Worksheet. Enter a description for A. For B, choose Retail Stores and Dealers, and for Code, choose Pet & pet supplies stores. For G, check yes. Check box 33a Cost and 34 No. Enter the information and amounts.

The Arcs itemize. For Schedule A, open a Charitable Donations Worksheet and enter the amount of their contribution to the church.


Enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.


For Joan's uniforms, on Schedule A, find the Mini-Worksheet for Line 21, Employee Business Expenses (right above line 21), and enter the amount on line b. Enter the description in the description box for line 21.

For the stock sales, open a Capital Gains and Losses Worksheet and record the information for each sale. To enter the long-term capital loss carryover, open a Last Year's Data Worksheet, and enter the amount on line 21.

For Schedule E, open a Schedule E Rentals and Royalties Worksheet. In Part I, line 1a, enter the address, and for Kind of property, enter Residential rental. Check the dwelling box. In Part II, enter 365 on line 1a. In Part IV, check box 4 for active participation. In Parts V and VI, enter the amounts of income and expenses in the first column. For depreciation, in Part VI, line 6, right-click in the first amount column, select Override, check the Override box, enter the amount and select OK.


To get the Child and Dependent Care Credit, rather than opening forms, go through a section of the interview. Select the Federal tab, and then Credits. Next to Child and Dependent Care Expenses, select Go To. In the Child and Dependent Care Expenses window, select Yes and then Next, and in the next window select No and then Next. In the next window, select Next. In the Child and Dependent Care Providers window, select Add Provider, and make up a name and Tax ID# in one of the formats shown - 91-1111111 works. Enter the expenses paid and select Next. In the next window check Mary Sue Arc and select Next. In the next window confirm the care provider's information and select Next. In the next window select Finished.





Appendix D, Clifden




Select Close Form, and then fill in a Dependents Worksheet, found under Form 1040, for each of the Clifdens' three sons. Enter their dates of birth.

Select Close Form, and then fill in a W-2 Worksheet, found under Form 1040, for Lulu. Be sure to enter her state income tax withheld.



For the estimated state income tax payments, open a State and Local Income Tax Payments Worksheet, found under Schedule A, and in Part I, on line 1, enter 4/15/2010 and the amount.

The Clifdens have interest and dividend income, so fill out a separate Form 1099-INT/OID for each interest amount, and a separate Form 1099-DIV for each dividend.

The interest from the City of Atlanta bonds is municipal, tax-exempt interest, so be sure to enter it in the right spot.

Since the amount of taxable interest is over 1,500, a Schedule B is required. Open a Schedule B, and in Part III, on the Mini-Worksheet for Part III, check Y for Yes. On line 7a, check Y for Yes, and on line 7b, enter Ireland. On line 8, check the N box for No.

For Schedule C, open a Schedule C and at the top, select Self or Spouse, depending on whether you listed Gregory as the taxpayer or as the spouse on the Background Information Worksheet. Enter a description for A. For B, choose Accommodations, Food & Drink, and for Code, choose Travel accommodation. For F, check (1) Cash, and for G, check yes. Enter the information and amounts. For depreciation, in Part II, line 13, right-click in the first amount column, select Override, check the Override box, enter the amount and select OK.

To enter Gregory's retirement income, open a 1099-R Worksheet and enter the income on lines 1 and 2a, the federal income tax withheld on line 4 and the state income tax withheld on line 10.

The Clifdens itemize. For Schedule A, enter the dental expenses directly on Schedule A, on the Mini-Worksheet for Line 1, Medical Expenses, on line a.

For the state income taxes paid in 2010 (for 2008), open a State and Local Income Tax Payments Worksheet, found under Schedule A, and enter the amount in Part V, on line 9.

Open a Charitable Donations Worksheet and enter the amount of their contributions.

Enter the home mortgage interest on the Home Mortgage Interest Worksheet. For Description of property, enter Principal residence, and answer Yes to the question about paying this interest to a financial institution. Enter the amount in Part A, on line 1.


For the investment interest, check the box for Line 14: Form 4952 Not Needed? in the area above line 14, and enter the amount on Schedule A, line 14.

To enter the deductible portion of the automobile registration fees, on Schedule A, on the Mini-Worksheet for Line 7, enter the amount on line b.




To report Gary's interest income, open a Form 8814, and enter the information for A and B. Enter the amount on line a of the Mini-Worksheet for Lines 1a and 1b, Interest Income, in Part I.






· web viewalso save the tax return as a , so that you can look at the return outside of the...

Documents