Basic Scenarios36
Basic Scenario 8: Teresa Martin
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 and 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.
Interview Notes
Teresas husband, Adam died in March 2015. They have two sons,
Zack and Mackenzie. She has not remarried.
Teresa paid more than half of Mackenzies support and all of the
cost of keeping up the home.
Her son, Zack, is permanently and totally disabled. He received
disability income that provided more than half of his own
support.
Teresa lost her job on October 20, 2015 and received
unemployment income.
She cashed in her 401(k) savings and used the money for
household expenses. She does not qualify for any exception to the
additional tax on early distributions.
Her son, Mackenzie, attended after-school care while Teresa
worked.
Teresa, Mackenzie, and Zack had health insurance through Teresas
employer through the end of October. They did not enroll in any
other coverage until January 2016. Adam was covered until his
death.
