Basic Scenario 9: Justin Reedley and Jenna Washington

Directions
Using the tax software, complete the tax return, including Form 1040 and all appropri-
ate forms, schedules, or worksheets. Answer the questions following the scenario.
Note: When entering Social Security numbers (SSNs) or Employer Identification
Numbers (EINs), replace the Xs as directed, or with any four digits of your choice.

Interview Notes
Justin and his wife Jenna want to file a joint tax return.
They have a daughter Ava.
Justin and Jenna have never taken a distribution from a retirement account.
Jenna has a Masters Degree in education. She works as a third grade teacher. She
tells you that she paid $250 in 2017 for books and supplies used in her classroom.
During the interview, she mentions that she took a couple of college courses at the
local community college to improve her job skills. She has a Form 1098-T and a
$300 receipt from the bookstore for books she bought for class. The books are not
required as a condition of enrollment.
Jenna has never claimed the Hope scholarship credit or the American opportunity
credit.
Justin and Jenna purchased a home in July of last year and want to know if they
have enough deductions to itemize. They give you receipts and statements for the
following items they would like to deduct:
Unreimbursed doctor bills for Justin, Jenna and Ava for $1,200.
Unreimbursed prescription drugs for $200.
Health club dues for Jenna for $100.
A statement received from their church showing donations made throughout the
year totaling $2,000.
Receipts for donations of furniture in good, used condition to Goodwill. The total
estimated fair market value is $250.
$25 donated to a friend in need through a social networking site.
Form 1098 showing mortgage interest and real estate tax they paid.
$1,200 for homeowners insurance.
Union dues for Justin for $200.
Justin, Jenna and Ava were covered all year under
a health care plan through Justins employer. The
employer paid the entire premium.
Justin and Jenna used the standard deduction on
last years federal income tax return. They received
a refund of $160 on their 2016 state tax return. Using
their states website, they confirmed that they received
the refund on April 30, 2017.
They live in a state with no sales tax.

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