1. 2010 Tax Class1 Day 3 Class Participation Class Exercise – Paul Austin Publ. 4491-W Exercise page 98 Advanced Section

2. 2010 Tax ClassTax Year 20092 Austins Intake Sheet Part I Personal Information

3. 2010 Tax ClassTax Year 20093 Austins Intake Sheet Part II Family & Dependent

4. 2010 Tax ClassTax Year 20094 Austins Intake sheet Part III Income

5. 2010 Tax ClassTax Year 20095 Austins Intake sheet Part IV Expenses

6. 2010 Tax ClassTax Year 20096 Austins Intake sheet Part V Life Events

7. 2010 Tax ClassTax Year 20097 Austins SS Card & Check

8. 2010 Tax ClassTax Year 20098 Are You ready to start filling in Austins 1040 Tax Returns? YES ? What is his filing status? Does he have any dependents? NO ? Why Not? What Questions do you need to have answered?

9. 2010 Tax ClassTax Year 20099 Austins Interview pt 1

10. 2010 Tax ClassTax Year 200910 Austins Filing Status No Dependents Married Filing Separately

11. 2010 Tax ClassTax Year 200911 Austins W-2

12. 2010 Tax ClassTax Year 200912 Austins Tier I Railroad Retirement

13. 2010 Tax ClassTax Year 200913 Austins Tier I Railroad Payment Where does it get entered on the 1040? How much of it is taxable?

14. 2010 Tax ClassTax Year 200914 Austins Tier I Railroad Payment Under Social Security 85% is taxable

15. 2010 Tax ClassTax Year 200915 Austins Railroad Retirement

16. 2010 Tax ClassTax Year 200916 Austins Railroad Retirement Payment Do we have sufficient information about his Railroad Retirement Payment from the RRB-1099-R? Yes? No? Why not?

17. 2010 Tax ClassTax Year 200917 Interview Answers Paul retired from the railroad on June 1, 2004. His annuity does not make provision for joint and survivor annuity.

18. 2010 Tax ClassTax Year 200918 Austins W-2

19. 2010 Tax ClassTax Year 200919 Austins Dividend Statement

20. 2010 Tax ClassTax Year 200920 Interview Information New Home Purchase Purchase date April 18, 2010 Sold previous home in December 15, 2005 Purchase Price $134,000 Did not purchase home from a relative. Eligible for First Time Home Owner Credit?

21. 2010 Tax ClassTax Year 200921 New House Purchase Expenses

22. 2010 Tax ClassTax Year 200922 New House Purchase Expense Deductable on 2010 Taxes? Lawyers Fees $477 J&J Survey Co $375 Title Insurance $250 Termite Inspection $300 Reimburse Seller for Taxes Pd $168 Recoding Fees $80 Transfer Taxes $588 Homeowners Insurance $320

23. 2010 Tax ClassTax Year 200923 Schedule A Interview Information Form 1098 Information Mortgage Interest $1,559.25 Points Paid on Purchase $1,000 Mortgage Insurance Interest $272.86 Real Estate Taxes $676.79 New House Settlement Taxes Pd $167.33 Church Contributions Statement $1700

24. 2010 Tax ClassTax Year 200924 Austins Federal Tax Return AGI $38,211 Itemized + Personal Deduction $10,672 Taxable Income$27,539 Income Tax $3,680 Federal Tax Withheld $5,011 Make Work Credit$400 First Time Homebuyers Credit $4,000 Overpaid $5,731

25. 2010 Tax ClassTax Year 200925 Austins NY State Tax Return IT-201 L 18 Federal AGI $38,211 L 24 NY State AGI $38,211 NY Subtractions L 27 Taxable SS $5619 L 29 Taxable Pensions $ 838 L31 Other S2 (RR Pen) $8686 Total NY Subtractions $15,143 NY State AGI $23,068

26. 2010 Tax ClassTax Year 200926 Austins NY State Tax Return IT-201 NY State AGI $23,068 NY State Tax $712 NY Household Credit $ 30 L 44 & 46 Net Tax $ 682 NY State Withholding $ 1,521 Overpaid $ 839