Solution 3 - Drake Software Support

drakesoftware.com
  • No tags were found...

Solution 3 - Drake Software Support

FormChild and Dependent Care ExpensesOMB No. 1545-00742441 2013Attach to Form 1040, Form 1040A, or Form 1040NR.Information about Form 2441 and its separate instructions is atwww.irs.gov/form2441.Department of the TreasuryAttachmentInternal Revenue Service (99) Sequence No.Name(s) shown on returnYour social security numberPETER & SUSAN BEACH 400-00-5003Part I Persons or Organizations Who Provided the Care - You must complete this part.1(If you have more than two care providers, see the instructions.)(a) Care provider's (b) Address (c) Identifying number (d) Amount paidname (number, street, apt. no., city, state, and ZIP code) (SSN or EIN) (see instructions)25 BAILEY STREETAustin, TXABC DAY CARE CEN 78731 72-3333333 5,00021Part II23Did you receivedependent care benefits?Credit for Child and Dependent Care Expensesfrom line 3134 Enter your earned income. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . 45 If married filing jointly, enter your spouse's earned income (if you or your spouse was astudent or was disabled, see the instructions); all others, enter the amount from line 4 . . . . . 56 Enter the smallest of line 3, 4, or 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Enter the amount from Form 1040, line 38; Form1040A, line 22; or Form 1040NR, line 37 . . . . . . . . . . 736,0008 Enter on line 8 the decimal amount shown below that applies to the amount on line 7If line 7 is:If line 7 is:But not Decimal But not DecimalOver over amount is Over over amount isNoYesComplete only Part II below.Complete Part III on page 2 next.Caution. If the care was provided in your home, you may owe employment taxes. If you do, you cannot file Form 1040A. For details,see the instructions for Form 1040, line 59a, or Form 1040NR, line 58a.Information about your qualifying person(s). If you have more than two qualifying persons, see the instructions.(c) Qualified expenses you(a) Qualifying person's name(b) Qualifying person's socialincurred and paid in 2013 for theFirst Last security numberperson listed in column (a)PETER BEACH 400-00-6002 2,500SUZANN BEACH 400-00-6003 2,500Add the amounts in column (c) of line 2. Do not enter more than $3,000 for one qualifyingperson or $6,000 for two or more persons. If you completed Part III, enter the amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$0 - 15,000 .35 $29,000 - 31,000 .2715,000 - 17,000 .34 31,000 - 33,000 .2617,000 - 19,000 .33 33,000 - 35,000 .2519,000 - 21,000 .32 35,000 - 37,000 .2421,000 - 23,000 .31 37,000 - 39,000 .2323,000 - 25,000 .30 39,000 - 41,000 .2225,000 - 27,000 .29 41,000 - 43,000 .2127,000 - 29,000 .28 43,000 - No limit .205,00025,00011,0005,0008 X .2491011Multiply line 6 by the decimal amount on line 8. If you paid 2012 expenses in 2013, seethe instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Tax liability limit. Enter the amount from the CreditLimit Worksheet in the instructions. . . . . . . . . . .Credit for child and dependent care expenses. Enter the smaller of line 9 or line 10here and on Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46For Paperwork Reduction Act Notice, see your tax return instructions.EEA10823. . . . . . . . .9111,200823Form 2441 (2013)


SCHEDULE EIC(Form 1040A or 1040)Before you begin:Earned Income CreditQualifying Child InformationOMB No. 1545-00742013Complete and attach to Form 1040A or 1040 only if you have a qualifying child.Department of the TreasuryAttachmentInternal Revenue Service (99) Information about Schedule EIC (Form 1040A or 1040) and its instructions is at www.irs.gov/scheduleeic.Sequence No.Name(s) shown on returnYour social security numberPETER & SUSAN BEACH 400-00-5003See the instructions for Form 1040A, lines 38a and 38b, or Form 1040, lines 64a and 64b, to makesure that (a) you can take the EIC, and (b) you have a qualifying child.Be sure the child's name on line 1 and social security number (SSN) on line 2 agree with the child's social security card.Otherwise, at the time we process your return, we may reduce or disallow your EIC. If the name or SSN on the child'ssocial security card is not correct, call the Social Security Administration at 1-800-772-1213.43CAUTION!If you take the EIC even though you are not eligible, you may not be allowed to take the credit for up to 10 years. See the instructions for details.It will take us longer to process your return and issue your refund if you do not fill in all lines that apply for each qualifying child.Qualifying Child InformationChild 1 Child 2 Child 31 Child's name2 Child's SSN3 Child's year of birth4 abIf you have more than three qualifyingchildren, you only have to list three to getthe maximum credit.The child must have an SSN as defined inthe instructions for Form 1040A, lines 38aand 38b, or Form 1040, lines 64a and 64b,unless the child was born and died in2013. If your child was born and died in2013 and did not have an SSN, enter"Died" on this line and attach a copy ofthe child's birth certificate, deathcertificate, or hospital medical records.Was the child under age 24 at the end of2013, a student, and younger than you (oryour spouse, if filing jointly)?Was the child permanently and totallydisabled during any part of 2013?5 Child's relationship to you(for example, son, daughter, grandchild,niece, nephew, foster child, etc.)6 Number of months child livedwith you in the United Statesduring 2013If the child lived with you for more thanhalf of 2013 but less than 7 months,enter "7."First name Last name First name Last name First name Last nameSUZANNBEACHPETERBEACH400-00-6003 400-00-6002Year Year YearIf born after 1994 and the child was If born after 1994 and the child was If born after 1994 and the child wasyounger than you (or your spouse, if younger than you (or your spouse, if younger than you (or your spouse, iffiling jointly), skip lines 4a and 4b; filing jointly), skip lines 4a and 4b; filing jointly), skip lines 4a and 4b;go to line 5. go to line 5. go to line 5.Yes. No. Yes. No. Yes. No.Go to Go to line 4b. Go to Go to line 4b. Go to Go to line 4b.line 5. line 5. line 5.Yes. No. Yes. No. Yes. No.Go to The child is not a Go to The child is not a Go to The child is not aline 5. qualifying child. line 5. qualifying child. line 5. qualifying child.DAUGHTER2003 2001If the child was born or died in 2013 andyour home was the child's home for more12 months 12 months monthsthan half the time he or she was alive Do not enter more than 12 Do not enter more than 12 Do not enter more than 12during 2013, enter "12."months. months. months.For Paperwork Reduction Act Notice, see your tax Schedule EIC (Form 1040A or 1040) 2013return instructions.EEASON


SCHEDULE 8812(Form 1040Aor 1040)Department of the TreasuryInternal Revenue Service (99)Name(s) shown on return!CAUTIONChild Tax CreditAttach to Form 1040, Form 1040A, or Form 1040NR.Information about Schedule 8812 and its separate instructions is atwww.irs.gov/schedule8812.2013PETER & SUSAN BEACH 400-00-5003Part I Filers Who Have Certain Child Dependent(s) with an ITIN (Individual Taxpayer Identification Number)Complete this part only for each dependent who has an ITIN and for whom you are claiming the child tax credit.If your dependent does not qualify for the credit, you cannot include that dependent in the calculation of this credit.OMB No. 1545-0074AttachmentSequence No.Your social security number47Answer the following questions for each dependent listed on Form 1040, line 6c; Form 1040A, line 6c; or Form 1040NR, line 7c, who has an ITIN(Individual Taxpayer Identification Number) and that you indicated qualified for the child tax credit by checking column (4) for that dependent.AFor the first dependent identified with an ITIN and listed as a qualifying child for the child tax credit, did this child meet the substantialpresence test? See separate instructions.BYesNoFor the second dependent identified with an ITIN and listed as a qualifying child for the child tax credit, did this child meet the substantialpresence test? See separate instructions.CYesNoFor the third dependent identified with an ITIN and listed as a qualifying child for the child tax credit, did this child meet the substantialpresence test? See separate instructions.DYesNoFor the fourth dependent identified with an ITIN and listed as a qualifying child for the child tax credit, did this child meet the substantialpresence test? See separate instructions.Note:YesNoIf you have more than four dependents identified with an ITIN and listed as a qualifying child for the child tax credit, see the instructionsand check here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Part II Additional Child Tax Credit Filers1 1040 filers: Enter the amount from line 6 of your Child Tax Credit Worksheet (see theInstructions for Form 1040, line 51).1040A filers: Enter the amount from line 6 of your Child Tax Credit Woksheet (see theInstructions for Form 1040A, line 33).1040NR filers: Enter the amount from line 6 of your Child Tax Credit Worksheet (see the1Instructions for Form 1040NR, line 48).2,000If you used Pub. 972, enter the amount from line 8 of the Child Tax Credit Worksheet in the publication.2 Enter the amount from Form 1040, line 51; Form 1040A, line 33; or Form 1040NR, line 4823 Subtract line 2 from line 1. If zero, stop; you cannot take this credit34a Earned income (see instructions)b Nontaxable combat pay (see separateinstructions)5 Is the amount on line 4a more than $3,000?. . . . . . . . . . . . . . . . .4bNo. Leave line 5 blank and enter -0- on line 6.X Yes. Subtract $3,000 from the amount on line 4a. Enter the result . . 5 33,0006 Multiply the amount on line 5 by 15% (.15) and enter the result . . . . . . . . . . . . . . . . . . . . 6Next. Do you have three or more qualifying children?X. . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 4a 36,000No. If line 6 is zero, stop; you cannot take this credit. Otherwise, skip Part III and enter the smaller ofline 3 or line 6 on line 13.Yes. If line 6 is equal to or more than line 3, skip Part III and enter the amount from line 3 on line 13.2,0004,950Otherwise, go to line 7.For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 8812 (Form 1040A or 1040) 2013EEA


Schedule 8812 (Form 1040A or 1040) 2013 Page 2Part IIIPart IVCertain Filers Who Have Three or More Qualifying Children7 Withheld social security, Medicare, and Additional Medicare taxes fromForm(s) W-2, boxes 4 and 6. If married filing jointly, include your spouse'samounts with yours. If your employer withheld or you paid AdditionalMedicare Tax or tier I RRTA taxes, see separate instructions . . . . . . . . 78 1040 filers: Enter the total of the amounts from Form 1040, lines27 and 57, plus any taxes that you identified using code"UT" and entered on line 60.81040A filers:1040NR filers:Enter -0-.Enter the total of the amounts from Form 1040NR,lines 27 and 55, plus any taxes that you identified usingcode "UT" and entered on line 59.9 Add lines 7 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 910 1040 filers: Enter the total of the amounts from Form 1040, lines64a and 69.1040A filers: Enter the total of the amount from Form 1040A, line38a, plus any excess social security and tier I RRTA10taxes withheld that you entered to the left of line 41(see separate instructions).1040NR filers: Enter the amount from Form 1040NR, line 65.11 Subtract line 10 from line 9. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 1112 Enter the larger of line 6 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Next, enter the smaller of line 3 or line 12 on line 13.Additional Child Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,00013 This is your additional child tax credit 13Enter this amount onForm 1040, line 65,Form 1040A, line 39, orForm 1040NR, line 63.EEASchedule 8812 (Form 1040A or 1040) 2013


FormPart I18867Department of the TreasuryInternal Revenue ServiceTaxpayer name(s) shown on returnFor the definitions of the following terms, see Pub. 596.All TaxpayersPaid Preparer's Earned Income Credit Checklist2013To be completed by preparer and filed with Form 1040, 1040A, or 1040EZ.Information about Form 8867 and its separate instructions is at www.irs.gov/form8867AttachmentSequence No. 177Investment Income Qualifying Child Earned Income Full-time StudentEnter preparer's name and PTIN2 Is the taxpayer's filing status married filing separately?Yes NoIf you checked "Yes" on line 2, stop; the taxpayer cannot take the EIC. Otherwise, continue.Taxpayer's social security numberPETER & SUSAN BEACH 400-00-5003Preparer1P12345678. . . . . . . . . . . . . . . . . . . . . . . . . . .OMB No. 1545-1629X3Does the taxpayer (and the taxpayer's spouse if filing jointly) have a social security number (SSN)that allows him or her to work or is valid for EIC purposes? See the instructions before answering. . . . .XYesNoIf you checked "No" on line 3, stop; the taxpayer cannot take the EIC. Otherwise, continue.4Is the taxpayer (or the taxpayer's spouse if filing jointly) filing Form 2555 or 2555-EZ (relating to theexclusion of foreign earned income)?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .YesXNoIf you checked "Yes" on line 4, stop; the taxpayer cannot take the EIC. Otherwise, continue.5a Was the taxpayer (or the taxpayer's spouse) a nonresident alien for any part of 2013?Yes NoIf you checked "Yes" on line 5a, go to line 5b. Otherwise, skip line 5b and go to line 6.. . . . . . . . . .X. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .b Is the taxpayer's filing status married filing jointly?Yes NoIf you checked "Yes" on line 5a and "No'' on line 5b, stop; the taxpayer cannot take the EIC.Otherwise, continue.6 Is the taxpayer's investment income more than $3,300? See Rule 6 in Pub. 596 before answeringYes NoIf you checked "Yes" on line 6, stop; the taxpayer cannot take the EIC. Otherwise, continue.. . . .X7Could the taxpayer be a qualifying child or another person for 2013? If the taxpayer's filing status ismarried filing jointly, check "No." Otherwise, see Rule 10 (Rule 13 if the taxpayer does not have aqualifying child) in Pub. 596 before answering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .YesXNoIf you checked "Yes" on line 7, stop; the taxpayer cannot take the EIC. Otherwise, go to Part IIor Part III, whichever applies.For Paperwork Reduction Act Notice, see separate instructions.EEAForm 8867 (2013)


Part II8910111213aPETER & SUSAN BEACH 400-00-5003Taxpayers With a ChildForm 8867 (2013) Page 2Caution. If there is more than one child, complete lines 8 through 14 forone child before going to the next column.Child's nameIs the child the taxpayer's son, daughter, stepchild, foster child, brother, sister,stepbrother, stepsister, half brother, half sister, or a descendant of any of them?Was the child unmarried at the end of 2013?If the child was married at the end of 2013, see the instructions beforeansweringDid the child live with the taxpayer in the United States for over half of 2013?See the instructions before answeringWas the child (at the end of 2013) -Under age 19 and younger than the taxpayer (or the taxpayer's spouse,if the taxpayer files jointly),Under age 24, a full-time student, and younger than the taxpayer (or thetaxpayer's spouse, if the taxpayer files jointly), orAny age and permanently and totally disabled?If you checked "Yes" on lines 9, 10, 11, and 12, the child is thetaxpayer's qualifying child; go to line 13a. If you checked "No" on line 9,10, 11, or 12, the child is not the taxpayer's qualifying child; see theinstructions for line 12.Do you or the taxpayer know of another person who could check "Yes"on lines 9, 10, 11, and 12 for the child? (If the only other person is thetaxpayer's spouse, see the instructions before answering)If you checked "No" on line 13a, go to line 14. Otherwise, go toline 13b.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Child 1 Child 2 Child 3Yes No Yes No Yes NoYes No Yes No Yes NoYes No Yes No Yes NoYes No Yes No Yes NoYes No Yes No Yes Nob Enter the child's relationship to the other person(s)c Under the tiebreaker rules, is the child treated as the taxpayer's qualifyingYes No Yes No Yes Nochild? See the instructions before answering . . . . . . . . . . . . . . . . . . . . Don't know Don't know Don't knowIf you checked "Yes" on line 13c, go to line 14. If you checked "No," thetaxpayer cannot take the EIC based on this child and cannot take the EIC fortaxpayers who do not have a qualifying child. If there is more than one child,see the Note at the bottom of this page. If you checked "Don't know," explainto the taxpayer that, under the tiebreaker rules, the taxpayer's EIC and othertax benefits may be disallowed. Then, if the taxpayer wants to take the EICbased on this child, complete lines 14 and 15. If not, and there are no otherqualifying children, the taxpayer cannot take the EIC, including the EIC fortaxpayers without a qualifying child; do not complete Part III. If there is morethan one child, see the Note at the bottom of this page.. .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . . . . . . . .SUZANNBEACHXXXXXPETERBEACHXXXXX14Does the qualifying child have an SSN that allows him or her to work or isvalid for EIC purposes? See the instructions before answeringIf you checked "No" on line 14, the taxpayer cannot take the EICbased on this child and cannot take the EIC available to taxpayerswithout a qualifying child. If there is more than one child, see the Note atthe bottom of this page. If you checked "Yes" on line 14, continue.. . . . . . . . . . . .XXYes No Yes No Yes No15Are the taxpayer's earned income and adjusted gross income each lessthan the limit that applies to the taxpayer for 2013? See Pub. 596 for thelimit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .XYes NoIf you checked "No" on line 15, stop; the taxpayer cannot take theEIC. If you checked "Yes" on line 15, the taxpayer can take the EIC.Complete Schedule EIC and attach it to the taxpayer's return. If thereare two or three qualifying children with valid SSNs, list them onSchedule EIC in the same order as they are listed here. If the taxpayer'sEIC was reduced or disallowed for a year after 1996, see Pub. 596 to seeif Form 8862 must be filed. Go to line 20.EEANote. If you checked "No" on line 13c or 14 but there is more than onechild, complete lines 8 through 14 for the other child(ren) (but for no morethan three qualifying children). Also do this if you checked "Don't know"on line 13c and the taxpayer is not taking the EIC based on this child.Form 8867 (2013)


Part IIIPETER & SUSAN BEACH 400-00-5003Taxpayers Without a Qualifying ChildForm 8867 (2013) Page 316 Was the taxpayer's main home, and the main home of the taxpayer's spouse if filing jointly, in theUnited States for more than half the year? (Military personnel on extended active duty outside theUnited States are considered to be living in the United States during that duty period. See Pub. 596.)If you checked "No" on line 16, stop; the taxpayer cannot take the EIC. Otherwise, continue.. . . . . .Yes No17Was the taxpayer, or the taxpayer's spouse if filing jointly, at least age 25 but under age 65 at theend of 2013? See the instructions before answering. . . . . . . . . . . . . . . . . . . . . . . . . . . . .YesNoIf you checked "No" on line 17, stop; the taxpayer cannot take the EIC. Otherwise, continue.18Is the taxpayer eligible to be claimed as a dependent on anyone else's federal income tax return for2013? If the taxpayer's filing status is married filing jointly, check "No". . . . . . . . . . . . . . . . . . .YesNoIf you checked "Yes" on line 18, stop; the taxpayer cannot take the EIC. Otherwise, continue.19Are the taxpayer's earned income and adjusted gross income each less than the limit thatapplies to the taxpayer for 2013? See Pub. 596 for the limit. . . . . . . . . . . . . . . . . . . . . . . . .YesNoPart IVDue Diligence Requirements20 Did you complete Form 8867 based on current information provided by the taxpayer or reasonablyobtained by you? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X Yes No21 Did you complete the EIC worksheet found in the Form 1040, 1040A, or 1040EZ instructions (or yourown worksheet that provides the same information as the 1040, 1040A, or 1040EZ worksheet)? . . . . . . . X Yes No22 If any qualifying child was not the taxpayer's son or daughter, do you know or did you ask why theYes Noparents were not claiming the child? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X Does not apply23 If the answer to question 13a is "Yes" (indicating that the child lived for more than half the year withsomeone else who could claim the child for the EIC), did you explain the tiebreaker rules andYes Nopossible consequences of another person claiming your client's qualifying child? . . . . . . . . . . . . . . . X Does not apply24 Did you ask this taxpayer any additional questions that are necessary to meet your knowledgeYes Norequirement? See the instructions before answering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does not apply25If you checked "No" on line 19, stop; the taxpayer cannot take the EIC. If you checked "Yes"on line 19, the taxpayer can take the EIC. If the taxpayer's EIC was reduced or disallowed for ayear after 1996, see Pub. 596 to find out if Form 8862 must be filed. Go to line 20.To comply with the EIC knowledge requirement, you must not know or have reason to knowthat any information you used to determine the taxpayer's eligibility for, and the amount of,the EIC is incorrect. You may not ignore the implications of information furnished to you orknown by you, and you must make reasonable inquiries if the information furnished to youappears to be incorrect, inconsistent, or incomplete. At the time you make these inquiries,you must document in your files the inquiries you made and the taxpayer's responses.Did you document (a) the taxpayer's answer to question 22 (if applicable), (b) whether you explainedthe tiebreaker rules to the taxpayer and any additional information you got from the taxpayer as aresult, and (c) any additional questions you asked and the taxpayer's answers?. . . . . . . . . . . . . . .XXYes NoDoes not applyYou have complied with all the due diligence requirements if you:1. Completed the actions described on lines 20 and 21 and checked "Yes" on those lines,2. Completed the actions described on lines 22, 23, 24, and 25 (if they apply) and checked "Yes" (or"Does not apply") on those lines,3. Submit Form 8867 in the manner required, and4. Keep all five of the following records for 3 years from the latest of the dates specified in theinstructions under Document Retention:a. Form 8867, Paid Preparer's Earned Income Credit Checklist,b. The EIC worksheet(s) or your own worksheet(s),c. Copies of any taxpayer documents you relied on to determine eligibility for or amount of EIC,d. A record of how, when, and from whom the information used to prepare the form andworksheet(s) was obtained, ande. A record of any additional questions you asked and your client's answers.You have not complied wiith all the due diligence requirements if you checked "No" on line 20, 21, 22,23, 24, or 25. You may have to pay a $500 penalty for each failure to comply.EEAForm 8867 (2013)


PETER & SUSAN BEACH 400-00-5003Form 8867 (2013) Page 4Part V Documents Provided to You26 Identify below any document that the taxpayer provided to you and that you relied on to determine the taxpayer's EICeligibility. Check all that apply. Keep a copy of any documents you relied on. See the instructions before answering. If thereis no qualifying child, check box a. If there is no disabled child, check box o.XXXabcdefghopqrResidency of Qualifying Child(ren)No qualifying childi Place of worship statementSchool records or statementj Indian tribal official statementLandlord or property management statementk Employer statementHealth care provider statementl Other (specify)Medical recordsChild care provider recordsPlacement agency statementSocial service records or statementm Did not rely on any documents, but made notes in fileDisability of Qualifying Child(ren)nDid not rely on any documentsNo disabled childs Other (specify)Doctor statementOther health care provider statementSocial services agency or program statementt Did not rely on any documents, but made notes in fileu Did not rely on any documents27EEAIf a Schedule C is included with this return, identify below the information that the taxpayer provided to you and that you reliedon to prepare the Schedule C. Check all that apply. Keep a copy of any documents you relied on. See the instructionsbefore answering. If there is no schedule C, check box a.XDocuments or Other Informationa No Schedule Ch Bank statementsb Business licensei Reconstruction of income and expensesc Forms 1099j Other (specify)defRecords of gross receipts provided by taxpayerTaxpayer summary of incomeRecords of expenses provided by taxpayerk Did not rely on any documents, but made notes in fileg Taxpayer summary of expensesl Did not rely on any documentsForm 8867 (2013)


IncomeTaxpayers with self-employment income:Not applicable1. How long have you owned your business?2. Can you provide any documentation to substantiate your business?Earned Income Credit Due Diligence2013(Keep for your records)Name(s) as shown on returnYour social security numberPETER & SUSAN BEACH 400-00-5003Does the income appear to be sufficient to support the taxpayer and qualifying children?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIf "No," some additional inquiries might be needed Yes No. . . . . . . . . . . . . . . . . .Business cardsBusiness/occupational license (if required)Business stationaryOther tax returns (sales/excise, employment, etc.)Receipts or receipt book (with company header)Advertisements (newspaper, flyer, yellow pages, etc.)Other (list any other documentation you can provide to substantiate your business):3.4.Who maintains the business records?Do you maintain separate banking accounts for personal and business transactions? Yes Noa. If "Yes," what form of records were provided?. . . . . . . . . .. . . . . . . . . . . . . . . . . . . .b.If "No," how do you differentiate between personal and business transactions and monetary assets?5.Were satisfactory records of income and expense provided? Yes Noa. If "Yes," in what form were these records provided?Accounting recordsCar/truck expensesPaid invoices/receiptsLedgersLog booksBusiness bank accountsComputer recordsOther (list any other forms of documentation you can provide to support your business):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .b. If "No," how did you determine:The amount of income?The amount of expense?6. Form 1099-MISC:a.b.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Do you have any Forms 1099-MISC to support the income? Yes NoIf not, is it reasonable that the business type would not receive Form 1099-MISC? Yes No7. Are the expenses consistent with the type of business? Yes No8. Are the amounts of expense reasonable? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No9. Are any expenses that are typical for this type of business missing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No10. List any other information you can provide related to your business:Your signature Date Spouse's signature. If joint return, BOTH must sign. DatePaid preparer's signatureDate12-02-2013EIC_INC.LD


Earned Income Credit Due Diligence - Notes2013(Keep for your records)Name(s) as shown on returnYour social security numberPETER & SUSAN BEACH 400-00-5003Use the notes fields below to document any additional inquiries made by the tax return preparer to help determine if the information furnished bythe taxpayer is complete and correct.Date of interview Name of taxpayer interviewed Taxpayer interviewed by01-01-2014 PETER BEACH P1Note:SCANNED ALL DOCUMENTS TO CLIENTS DDM FORDER.Note:Note:Note:Your signature Date Spouse's signature. If joint return, BOTH must sign. DatePaid preparer's signatureDate12-02-2013EIC_NOTE.LD


Part 1Part 2Forms 1040, 1040A1040NRCAUTION!Child Tax Credit WorksheetKeep for your records.1. Number of qualifying children:X $1,000. Enter the result.12. Enter the amount from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. 2 36,0003. 1040 Filers. Enter the total of any -Exclusion of income from Puerto Rico, andAmounts from Form 2555, lines 45 and 50; Form 2555-EZ, line 18;3and Form 4563, line 15.1040A and 1040NR Filers. Enter -0-.4. Add lines 2 and 3. Enter the total.4 36,0005. Enter the amount shown below for your filing status.Married filing jointly - $110,000Single, head of household, or qualifying widow(er) - $75,0005 110,000Married filing separately - $55,0006. Is the amount on line 4 more than the amount on line 5?X No. Leave line 6 blank. Enter -0- on line 7.Yes. Subtract line 5 from line 4.6If the result is not a multiple of $1,000, increase it to the next multiple of $1,000.For example, increase $425 to $1,000, increase $1,025 to $2,000, etc.7. Multiply the amount on line 6 by 5% (.05). Enter the result.78. Is the amount on line 1 more than the amount on line 7?No. STOPYes. Subtract line 7 from line 1. Enter the result. Go to Part 2.89. Enter the amount from Form 1040, line 46; Form 1040A, line 28; or Form 1040NR, line 44.910. Add the following amounts from:Form 1040 or Form 1040A or Form 1040NR11.Name(s) as shown on returnTo be a qualifying child for the child tax credit, the child must be under age 17 at the end of 2013 and meet the otherrequirements listed in instructions.You cannot take the child tax credit on Form 1040, line 51; Form 1040A, line 33; or Form 1040NR, line 48. You alsocannot take the additional child tax credit on Form 1040, line 65; Form 1040A, line 39; or Form 1040NR, line 63.Complete the rest of your Form 1040, 1040A, or Form 1040NR.Line 47 Line 45 +Line 48 Line 29 Line 46 +Line 49 Line 31 +Line 50 Line 32 Line 47 +Form 5695, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +Form 8834, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +Form 8910, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +Form 8936, line 15 . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . +Schedule R, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +Enter the total. 10Are you claiming any of the following credits?Mortgage interest credit, Form 8396. Adoption credit, Form 8839Residential energy efficient property credit, Form 5695, Part II.District of Columbia first-time homebuyer credit, Form 8859.X No. Enter the amount from line 10.11 823Yes. Complete the Line 11 Worksheet on the next page to figure the amount to enter here.12. Subtract line 11 from line 9. Enter the result.1213. Is the amount on line 8 of this worksheet more than the amount on line 12?No. Enter the amount from line 8.Yes. Enter the amount from line 12. See the TIP below.This is yourchild tax credit. 13Your social security numberPETER & SUSAN BEACH 400-00-50032 2,000X 2,000823X8238230TIPYou may be able to take the additional child tax credit on Form 1040, line 65; Form 1040A, line 39;or Form 1040NR, line 63, only if you answered "Yes" on line 13.First, complete your Form 1040 through line 64a (also complete line 69), Form 1040A through line 38a,or Form 1040NR through line 62 (also, complete line 65).Then, use Form 8812 to figure any additional child tax credit.Enter this amount onForm 1040, line 51;Form 1040A, line 33;or Form 1040NR, line 48.WK_8812.LD


Credit Limit Worksheet2013NamePETER & SUSAN BEACH 400-00-50031. Amount from Form 1040, line 46; Form 1040A, line 28; or Form 1040NR line 441.2. Foreign tax credit amount from Form 1040, line 47 or Form 1040NR line 452.3. Subtract line 2 from line 1. Enter this amount on Form 2441, line 10 3.4. Amount from Form 2441, line 114.5. Subtract line 4 from line 3. Enter this amount on Schedule R, line 21 5.6. Amount from Schedule R, line 226.7. Enter amount from Form 8863, line 187.8. Subtract line 6 from line 58.9.10. Enter amount from Form 8863, line 910.11. Subtract line 9 from line 8.11.12.Enter the smaller of line 7 or line 8. Nonrefundable lifetimelearning creditEnter the smaller of line 10 or line 11. Nonrefundable AmericanOpportunity credit13. Add line 9 and line 12. Enter this amount on Form 8863, line 23 13.14. Subtract line 13 from line 8. Enter this amount on Form 8880, line 13 14.15. Amount from Form 8880, line 1415.16. Subtract line 15 from line 14. Enter this amount on Form 5695, line 13 16.17. Amount from Form 5695, line 1417.18. Subtract line 17 from line 16. Enter this amount on Form 8834, line 22 18.19. Amount from Form 8834, line 2319.20. Subtract line 19 from line 18. Enter this amount on Form 8910, line 21 20.21. Amount from Form 8910, line 2221.22. Subtract line 21 from line 20. Enter this amount on Form 8936, line 14 22.23. Amount from Form 8936, line 1523.24. Amount from Line 12 of WK_8812.PG224.25. Subtract lines 23 and 24 from line 22. Enter this amount on Form 8396, line 8 25.26. Amount from Form 8396, line 1026.27. Subtract line 26 from line 2527.28. Amount from Form 8839, line 1428.29. Enter the smaller of line 27 or line 28. Enter this amount on Form 8839, line 1229.30. Subtract line 29 from line 27. Enter this amount on Form 8859, line 8 30.9.SSN. . . . . .823. . . . . . . .. . . . . . . . . . . . . . . . . .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 12.. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . .823CRED_LMT.LD

More magazines by this user
Similar magazines