Advanced Scenarios 67 Advanced Scenario 5: Matthew Clark Directions Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When using the Link & Learn Taxes Practice Lab, complete the Social Security numbers and employer identiﬁcation numbers by replacing the Xs with your User ID. In classroom situations, replace the Xs with the numbers provided by your instructor. Complete Form 1040 and the appropriate forms, schedules, and worksheets to answer each of the following questions. Interview Notes • In September 2015, Matthew enrolled in college to pursue a bachelor’s degree. He had no other post-secondary education. Brown College is a qualiﬁed educational institution. • Matthew does not have a felony drug conviction. • Matthew brought a Form 1098-T and an account statement from the college. The Form 1098-T includes the amount billed for the Spring 2016 semester. Matthew has not yet paid this amount. • The terms of Matthew’s scholarship require that it be used to pay for tuition. • Matthew took a distribution from his IRA to pay for some of his education expenses. All his IRA contributions were deductible in the year he made them. • For the purposes of this scenario, assume Matthew lives in the lower 48 states. • Matthew underestimated his 2015 income when he purchased insurance through the Marketplace. • Matthew purchased minimum essential health care coverage through the Marketplace. • Matthew was solvent at the time the credit card debt was cancelled.

Advanced Scenario 5: Matthew Clark (2016)

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Advanced Scenario 5: Matthew Clark (2016)

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Advanced Scenarios 67

Advanced Scenario 5: Matthew Clark

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 using the Link & Learn Taxes Practice Lab, complete the Social Security numbers and employer identification numbers by replacing the Xs with your User ID. In classroom situations, replace the Xs with the numbers provided by your instructor. Complete Form 1040 and the appropriate forms, schedules, and worksheets to answer each of the following questions.

Interview Notes

• In September 2015, Matthew enrolled in college to pursue a bachelor’s degree. He had no other post-secondary education. Brown College is a qualified educational institution.

• Matthew does not have a felony drug conviction.

• Matthew brought a Form 1098-T and an account statement from the college. The Form 1098-T includes the amount billed for the Spring 2016 semester. Matthew has not yet paid this amount.

• The terms of Matthew’s scholarship require that it be used to pay for tuition.

• Matthew took a distribution from his IRA to pay for some of his education expenses. All his IRA contributions were deductible in the year he made them.

• For the purposes of this scenario, assume Matthew lives in the lower 48 states.

• Matthew underestimated his 2015 income when he purchased insurance through the Marketplace.

• Matthew purchased minimum essential health care coverage through the Marketplace.

• Matthew was solvent at the time the credit card debt was cancelled.