Abdul Ali would like to get his tax return done quickly. He tells you that he pl
ID: 2736874 • Letter: A
Question
Abdul Ali would like to get his tax return done quickly. He tells you that he plans to use the same form as his parents (1040), but you suggest that he file a 1040EZ to save time. He provides you with the following specific information about last year and asks that you prepare his return. Abdul is a full-time MBA grad student at Harvard, and he has never been married. He received $41,900 in scholarship money and used $14,665 of it for room and board. He worked during the summer on Wall Street as a NYSE floor runner, earning $10,500. He has a savings account that earned him $102 in interest income last year. He had $2,365 withheld from his wages for federal income tax during the year. Enter the appropriate amounts for the 1040EZ tax form shown below to determine Abdul's tax liabilityExplanation / Answer
Income 1. Wages Salary and Tips 25,165 2. Taxable Interest 102 3. 4. Add Line 1, 2 and 3 25,267 5. 9,500 6. Taxable income 15,757 Payments, Credits and Tax 7. Withheld amount 2,365 8 9a 10.Total Payment and Credits 2,365 11. Tax 1,941 Refund 12a. Refund 424 Amount you owe 13. 0