(Solved): Directions Read the scenario information for Monica Montgomery beginning on page 50 . 25. Monica m ...

Directions Read the scenario information for Monica Montgomery beginning on page 50 . 25. Monica must report of her gambling winnings on her 2022 return. a. \( \$ 0 \) b. \( \$ 5,000 \) c. \( \$ 7,000 \) d. \( \$ 10,000 \) 26. Which of the following statements are true? a. Monica should file Single b. Monica should file Married Filing Jointly c. Monica should file Head of Household d. Monica should file Qualifying Surviving Spouse (QSS) 27. Monica is subject to the additional \( 10 \% \) tax on early distributions. a. True b. False 28. Monica is eligible to claim the Child Tax Credit. a. True b. False 29. Monica can split her refund between her savings and checking accounts by completing Form 8888, Allocation of Refund (Including Savings Bonds Purchases). a. True b. False 30. What amount can Monica claim as an adjustment to income for the supplies she purchased out of pocket? a. \( \$ 0 \) b. \( \$ 250 \) c. \( \$ 300 \) d. \( \$ 450 \) Interview Notes - Monica is 31 years old and married to Mike. Mike passed away on February 2, 2021. Monica has not remarried. - Monica's eight-year-old daughter, Emma, lived with her the entire year. - Monica paid more than half the cost of keeping up a home and support for Emma. - Monica received a distribution from her traditional IRA in January to pay for living expenses. - Monica was a full-time high school teacher and earned \( \$ 42,000 \) in wages. Monica purchased supplies including masks and hand sanitizer for her class out of her own pocket totaling \( \$ 450 \). - Monica received a \( W-2 G \) in the amount of \( \$ 10,000 \) from the local casino. - Monica paid child and dependent care expenses for Emma while she worked. - Monica and Emma are U.S. citizens and have valid Social Security numbers. They lived in the United States for the entire year. - If Monica is entitled to a refund, she would like to deposit half into her checking account and half into her savings account. Documents from Adelphi Bank and Trust show that the routing number for both accounts is 111000025 . Her savings account number is 224466880. 8. (A) Cash/check/digital assets, or other property or services for any work performed not reported on Forms W-2 or 1099 ? 9. (A) Income (or loss) from the sale or exchange of stocks, bonds, digital assets 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 1099-G) 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, digital assets, Sch K-1, royalties, foreign income, etc.) \begin{tabular}{c|c|c|cccc} \hline Yes & No & Unsure & Part IV - Expenses - Last Year, Did You (or Your Spouse) Pay & \\ \hline\( \square \) & \( \boldsymbol{x} \) & \( \square \) & 1. (B) Alimony or separate maintenance payments? If yes, do you have the recipient's SSN? \\ \( \square \) & \( \boldsymbol{x} \) & \( \square \) & 2. Contributions or repayments to a retirement account? & IRA (A) & Roth IRA (B) \end{tabular} 3. (B) College or post secondary educational expenses for yourself, spouse or dependents? (Form 1098-T) 4. Any of the following? (A) Medical \& Dental (including insurance premiums) (A) Mortgage Interest (Form 1098) (A) Taxes (State, Real Estate, Personal Property, Sales) (B) 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) 1. (A) Have a Health Savings Account? (Forms 5498-SA, 1099-SA, W-2 with code W in box 12) 2. (A) Have credit card, student loan 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. (A) Receive the First Time Homebuyers Credit in 2008? 7. (B) Make estimated tax payments or apply last year's refund to this year's tax? If so how much? 8. (A) File a federal return last year containing a "capital loss carryover" on Form 1040 Schedule D? 9. (A) Have health coverage through the Marketplace (Exchange)? [Provide Form 1095-A] Additional Information and Questions Related to the Preparation of Your Return 1. Would you like to receive written communications from the IRS in a language other than English? Yes \( x \) No If yes, which language? 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 To purchase U.S. Savings Bonds c. To split your refund between different accounts x Yes No 4. If you have a balance due, would you like to make a payment directly from your bank account? Yes 5. Did you live in an area that was declared a Federal disaster area? Yes \( \square \) No If yes, where? 6. Did you, or your spouse if filing jointly, receive a letter from the IRS? \( \square \) Yes \( \quad \mathbf{x} \) No 7. Would you like information on how to vote and/or how to register to vote? Yes \( \square \) No Many free tax preparation sites operate by receiving grant money or other federal financial assistance. The data from the following questions may be used by this site to apply for these grants or to support continued receipt of financial funding. Your answer will be used only for statistical purposes. These questions are optional. 8. Would you say you can carry on a conversation in English, both 10. Do you or any member of your household have a disability? 12. Your race? American Indian or Alaska Native Asian Black or African American Native Hawaiian or other Pacific Islander 13. Your spouse's race? American Indian or Alaska Native Asian Black or African American Native Hawaiian or other Pacific Islander White \( \quad \) Prefer not to answer No spouse 14. Your ethnicity? Hispanic or Latino Not Hispanic or Latino Prefer not to answer 15. Your spouse's ethnicity? Hispanic or Latino \( \quad \) Not Hispanic or Latino \( \quad \) Prefer not to answer \( \square \) No spouse 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 recelve 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. 301 . 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 activites and staffing at volunteer return preparation sites or outreach activities. The information may also be used to establish effective controls, send correspondence and recognize volumteers. 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 1545-1964. 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 Intemal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, Washington, DC 20224 Forms W-2 \& W-2G Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. CORRECTED (if checked) Forms 1099-R \& 1098-E MANE Make A Way Daycare \( \underset{\text { DA A }}{\text { A }} \) Your City, State Zip (XXX) 555-5555 Date: December 31,2022 Received From: EIN: 38-5XXXXXX Monica Montgomery Provider: Lynn Smith 178 Packer Drive \begin{tabular}{lrr} Description & Price & Total \\ After-School Care for Emma Montgomery & \( \$ 3,000 \) & \( \$ 3,000 \) \\ \hline \end{tabular} \begin{tabular}{cc} \hline Total Amount Received for 2022 Childcare & \( \$ 3,000 \) \\ \hline \end{tabular} Thank you for your business! Monica Montgomery 178 Packer Dr YOUR CITY, STATE, ZIP PAY TO THE ORDER OF Adelphia Bank and Trust Anytown, State 00000 For DOLLARS \[ : 111000025: 123456789 \quad 1234 \]