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John Cameron and Amy Camden Directions The completion of a tax return is not required for this scenario

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John Cameron and Amy Camden Directions The completion of a tax return is not required for this scenario. A completed return is provided. Perform a quality review of the return, comparing the intake sheet and taxpayer source documents. Answer the questions following the scenario. Interview Notes • John and Amy are married. • John is age 61, Amy is age 49. Neither are blind. John draws Social Security Disability income (SSDI) and tutors part time for extra cash. When asked about expenses, John stated that he spent $200 on supplies for tutoring his students. Amy teaches preschool. • Amy won $5,000 at the local casino. She has $4,900 in gambling losses. • They have two sons, Brad and Craig, who live with them. • Brad is 14 years old. John and Amy pay more than half the support for Brad. • Craig is 21 years old, is not a full-time student, receives SSDI of $10,000, and uses it to provide more than half of his own support. Craig is totally and permanently disabled. • Amy has family coverage through a High Deductible Health Plan at work. She used a distribution from her HSA to pay for two pairs of prescription eyeglasses for Brad. • John pays $6,000 alimony to his ex-wife Kim. Their divorce was finalized October 10, 2004. Kim's Social Security number is 568-00-XXXX. • John and Amy paid $500 total in quarterly estimated tax payments. • John and Amy received an Economic Impact Payment (EIP) of $2,900 in 2020. • John was a victim of identity theft and received an Identity Protection PIN from the IRS. The PIN is 654708. 16. Consider the following factors: Name, SSN, Birthdate, Age/Blindness section, Dependents section. Whose information is correct? (Select all that apply): a. John b. Amy c. Brad d. Craig e. None of the above 17. What are the correct amounts that should appear on the following lines from Form 1040, page 2: Other taxes, Federal income tax withheld (total), and 2020 estimated tax payments? a. $55, $990, and $50 b. $55, $1,200, and $50 c. $184, $2,190, and $500 d. $0, $2,190, and $500 18. What additional errors are found on Form 1040, page 2? (Select all that apply.) a. EIC is incorrect b. Additional child tax credit is incorrect c. Routing number is incorrect d. Account number is incorrect e. The taxpayer's IP PIN is incorrect 19. What are the correct values that should appear on the following lines from Schedule 1: Other income (line 8), Combine lines 1-8 (line 9), Educator expenses (line 10)? a. $1,600, $1,600, and $200 b. $100, $1,400, and $0 c. $5,000, $6,300, and $0 d. $5,000, $6,500, and $200 20. Why is there an amount on the "Taxes from:" line on Schedule 2 (line 8)? a. This is where James' self-employment tax on his tutoring income is reported. b. The wrong code was used when entering Amy's 401(k) contribution on her Form W-2. c. This is the additional tax on Amy's non-qualified HSA distributions.