How did your personal tax experience and knowledge help you in completing this tax return?

YOU MAY ADD SPACES BETWEEN THESE QUESTIONS FOR YOUR ANSWERS, AND INCLUDE

ANY COMPUTATIONS NEEDED IN A SEPARATE EXCEL DOCUMENT.
1. Personal perspectives and position: What is your experience and knowledge level regarding
individual taxes? How did your personal tax experience and knowledge help you in completing
this tax return? My experience with individual taxes is limited to class assignments. In that
regard, the tax return 1 was important while handling the current assignment.
2. Other salient perspectives and positions: What resources did you use in preparing this tax
return? In order to receive full points for this question you must provide references to page
numbers in your textbook and specific addresses within the IRS website.
I used the IRS website, in particular, the 2021 instruction 1040. The document describes changes
from previous filing forms and is recent, https://www.irs.gov/pub/irs-pdf/i1040gi.pdf , 2021 Forms
W-2, https://www.irs.gov/forms-pubs/2021-forms-w-2-reporting-of-qualified-sick-leave-family-
leave-wages-paid-under-the-families-first-coronavirus-response-act-as-amended-by-the-american-
rescue-plan .
3. Key assumptions: How did you decide what filing status to use? How did you decide which
income was includible or excluded? How did you decide which expenses were deductible?
Please explain. Assuming that the customer experienced losses from stock, occasioned by the
current COVID-19 pandemic, she is posed to receive deductions as a result of capital loss.
Besides, her salary and other incomes earned from her real estate and inherited rental house
were considered for taxation. It was assumed that the client was healthy through the COVID-19
pandemic because it influenced the rate of tax deductions, significantly.
4. Quality of evidence: Show your work in an Excel attachment for the following line item: Form
1040 Line 16. (When calculating the tax amount, make sure you consider the preferential tax
rates for long-term capital gains and qualified dividends. If your tax amount calculated in your
Excel worksheet is slightly different from the tax amount calculated by the software, just make a
note of it on the spreadsheet. It may be a rounding difference, but you should not be off by too
much.)

5. Conclusions, implications, and consequences: From your answers to the line items in this tax
return, is this individual in a position to receive a refund from the IRS or to pay additional tax to
the IRS? Paige is in a position to receive refund from IRS based on her qualification for Earned
Income and Earned Tax Credit.

6. Identify criteria for assessing alternatives: Based on the amount owed or to be refunded, what
are the key tax issues that should be considered during the next year? List at least two key tax
issues and explain each. (Think outside the box; this is not given in the problem.)
Tax issues to be considered for next year includes amounts refundable as a consequence of COVID-
19 implications. In that case, Paige will receive additional refunds.
7. Applies criteria to alternatives: Based on these key tax issues, what are the taxpayer’s options
for the next year? Identify options for each tax issue listed. (Again, think outside the box.)
The taxpayer’s options for next year includes subscribing for the Earned Income and Earned Tax
Credit, incase she has not enrolled. Besides, she will receive credit worth approximately $57000
because of her two children.
8. Evaluates results: As a tax preparer, what would you recommend this client to do next year based
on the options identified? (Please do not say that the client should be more organized, or keep
better documentation, or anything along those lines. In at least three sentences, use the text and
knowledge gathered over the semester to put together a solid recommendation to this tax client. )
The client should consider exploring tax deductions and credits within her reach. Moreover, the
client is expected to enroll her two children for credit considerations.