TAX FORMRETURN PREPARATION PROBLEMS
Dave Stevens, age is a selfemployed physical therapist. His wife Sarah, age teaches
English as a Second Language at a local language school. Dave's Social Security number is
Sarah's Social Security number is Sarah and Dave have three
childrenAndrew, age ; Isaac, age ; and Mira, age The children's Social Security num
bers are, respectively, and They live at
Pheasant Run, West Bend, Oregon They paid $ in qualified residence interest
and $ in property taxes on their home. They had cash charitable contributions of
$ They also paid $ to a CPA for preparing their federal and state income tax
returns for the prior year, $ of which was for the preparation of Dave's Schedule C
Sarah and Dave earned interest on CDs of $ Sarah's salary for the year is $
from which $ in federal income tax and $ in state income tax were withheld.
Dave's office is located at Suite Woodview Drive, Portland, Oregon and his
employer ID number is Dave has been practicing for four years, and he uses
the cash method of accounting. During Dave recorded the following items of income:
Revenue from patient visits $
Interest earned the office
checking balance
The following expenses were recorded for the office:
Dave pays $ annually for use of a safety deposit box to store certain confidential docu
ments related to his business. In addition to his medical practice, Dave spends hours
every week managing his real estate investments. To make sure he is aware of all current
investment strategies and best practices, he subscribes to the following journals:
Dave also prepaid $ in estimated federal income taxes. Prepare Dave and Sarah's
tax return Form Schedules A B C SE and Form Disregard
any tax credits for which they may be eligible.
