Tax Return Project
* I uploaded the three forms and a screenshot of the problem from the book.See the instructions about the project below.ACCT 426, Introduction to Taxation I, Spr. Sem. 2021ACCT 426, Tax Return Project – 2Problems: Chapter 8-53 (Janice Morgan) South-Westerns Federal Taxation, Comprehensive Volume (2021). Prepare the Tax Return for 2020.Changes to Problem: Change all year-ends to one year later; that is, 2019 becomes 2020.The following information should be helpful in your preparation of the tax return.(1) (a) Requirement: Prepare the federal income tax return on the appropriate IRS forms. (Even if you use a software program, you must turn in manual entries on IRS forms.) Copies of those forms and instructions are available at www.irs.gov(b) Additional Requirements: Prepare a brief top sheet summarizing the factual information in the format of the tax formula.(2) Strategy: You might want to start with page 1 of the 1040 and manually make entries (pencil recommended). You may then need to do subsidiary forms (e.g., SchedulesC). You might also want to work out the figures for the tax formula roughly first before beginning the return.(3) Check figures:Adjusted gross income 20,263 Itemized deductions 12,650Taxable income 6,090 None of SE tax is deferred(4) Check forms: (please include in your return):(5) Grading:a. Per the syllabus, this manual return is 16% of the grade; i.e., 40 points, since the four exams are worth 75 points each of the 400 possible points.b. Actual maximum, manual return, 43 points (3 points extra credit)c. Forms: 1040 pages 1 and 2; Schedules 1, 2, 3, A, B, C, SE; Forms 8995 and 4562(6) Additional helpful information:a. Please use the sequence numbers in the upper right-hand corner of the official IRS forms for the proper orderb. Do not calculate next years estimates or any late filing penalty or interest.c. There is a QBI deduction on Form 1040, page 1, line 10.