Chat with us, powered by LiveChat Taxpayer Facts Richard and Natalie Burns are a married couple in their early thirties. They do not have any children yet. They live in a rented condominium in Overland Park, Kansas. Natalie - Very-Good Essays

Taxpayer Facts Richard and Natalie Burns are a married couple in their early thirties. They do not have any children yet. They live in a rented condominium in Overland Park, Kansas. Natalie

Taxpayer Facts
Richard and Natalie Burns are a married couple in their early thirties. They do not have
any children yet. They live in a rented condominium in Overland Park, Kansas. Natalie
works as a nurse at St. Luke’s South Hospital and Richard is a 30% partner in a small
engineering firm that is operated as a general partnership. They have come to your
office with the following information to have their 2023 individual federal income tax
completed. They provide you with the following information:
1. Copies of the following documents (available on K-State Canvas as a PDF titled,
“Supporting Documents”):
– K-1 from Richard’s partnership (no payments were made requiring the
filing of a Form 1099, there are no prior year losses or non-at risk
amounts, Richard materially participates in the partnership, and all
income is considered non-passive income)
– W-2 from Natalie’s job at St. Luke’s South Hospital
– 1099-Int from First Bank
– 1099-Int from Local Credit Union
– 1099-Div from ABC Mutual Fund
2. Natalie and Richard sold their 2016 Honda Accord in 2023 for $12,000. They had
purchased it for $20,000. Natalie had used it exclusively for personal driving.
3. Natalie received a gift of $40,000 from her parents late in 2023.
4. Richard’s grandfather passed away in September of 2023. Richard received
$100,000 as the beneficiary on the life insurance policy.
5. In April 2023, Natalie started a part-time business from home doing consulting work
for physicians’ office practices (business identification code 621399). Natalie
materially participants in the business and is not eligible for a home office deduction.
During the year, she collected $25,000 in consulting fees and incurred the following
expenses, none of which would require Natalie to file a Form 1099 (Natalie uses the
cash method of accounting):
• Spent $2,500 advertising in the local medical journal.
• Spent $1,500 on office supplies (not part of cost of goods sold).
• Spent $750 on utilities.
• Spent $800 on an occupational license.
• Spent $1,900 on liability insurance.
6. Natalie and Richard made timely estimated tax payments of $23,000 during the
year.
7. During the year, the Burns sold the following capital assets (assume that in all
cases, the basis was reported to the IRS):
Asset Acquired Sold Selling price Adjusted Basis
A stock 6-02-16 10-13-23 4,200 3,500
B stock 8-6-07 3-12-23 6,000 8,000
C stock 2-10-23 11-14-23 6,000 20,000
D Stock 6-16-19 12-7-23 5,000 4,500
E Stock 7-11-23 10-10-23 5,000 4,000
Boat 10-2-15 4-25-23 4,000 10,500
Note1: The B stock was sold to Natalie’s brother.
Note2: The boat was used for personal recreation.
Required
Prepare the Burns’ 2023 federal tax return. They have asked you to minimize their
tax liability to the extent legally possible. Round numbers to the nearest dollar.
Clearly state any assumptions make in completing the tax return. Include any
supporting schedules. The following 2023 tax forms are required:
• Form 1040: U.S. Individual Income Tax Return, pages 1 and 2
• Form 1040: Schedule 1, 2, 3
• Form 8949: Sales and Disposition of Capital Assets
• Schedule C: Profit and Loss from Business
• Schedule D: Capital Gains and Losses
• Schedule SE: Self-Employment Taxes (use the short form)
• Computation of tax liability (i.e., the Tax Computation Worksheet and the
Qualified Dividends and Capital Gain Worksheet)
• Instructions for Form 1040:
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
• Form 1040: U.S. Individual Income Tax Return, pages 1 and 2
https://www.irs.gov/pub/irs-pdf/f1040.pdf
• Form 1040, Schedule 1
https://www.irs.gov/pub/irs-pdf/f1040s1.pdf
• Form 1040, Schedule 2
https://www.irs.gov/pub/irs-pdf/f1040s2.pdf
• Form 8949: Sales and Other Dispositions of Capital Assets
https://www.irs.gov/pub/irs-pdf/f8949.pdf
• Schedule C: Profit and Loss from Business
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
• Schedule D: Capital Gains and Losses
https://www.irs.gov/pub/irs-pdf/f1040sd.pdf
• Schedule SE: Self-Employment Taxes (you will need 2 forms for this one)
https://www.irs.gov/pub/irs-pdf/f1040sse.pdf
• Computation of tax liability (i.e., the Qualified Dividend and Capital Gain Tax
Worksheet; not normally not filed as part of a tax return, but turn it in for this
project to show your work)
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf (pages 37 and 77 of the
instructions)
• Also include a letter to the Burns explaining to them any carryforward
items (both the character and the amount) they might have and how
much refund or additional tax they have to pay with their return.
You can download the necessary forms, instructions, and tax tables from the IRS
website (www.irs.gov); the links to the tax forms are also included above. Make sure
you obtain the 2023 tax return forms. You may NOT prepare the tax return using
Commercial Tax Software (e.g., TurboTax).
Hints
1) The best way to approach the project may be to complete it in the following order
• Profit and loss from the business (Schedule C),
• Self-employment tax (Schedule SE) – one form for Natalie and one form
for Richard (two forms total)
• Sales and other dispositions of capital assets (Form 8949). Check box “A”
for both short-term gains/losses (basis reported to the IRS) and box “D” for
long-term gains/losses (basis reported to the IRS); leave columns “f” and
“g” blank.
• Capital gains & losses (Schedule D). Be sure to check if there are any
capital gain distributions to report.
• Carry over the information from Schedules C, D, and SE to Form 1040,
along with any other information that needs to be reported on Form 1040.
Fill out Schedules 1 and 2 for Form 1040 and transfer information to the
Form 1040.
• Finally, write a letter to the Burns.
2) Neither Richard nor Natalie elects to contribute to the Presidential Election
Campaign. They also do NOT have any 2023 digital assets.
3) Use the Tax Computation Worksheet and the qualified dividend and capital gain
worksheet to figure the tax on line 12a of Form 1040 (and turn in with the
project).
These links are available at:
http://www.irs.gov/pub/irs-pdf/i1040gi.pdf (pages 37 and 77 of the instructions)
4) Assume that the Burns do NOT have to pay the AMT.
5) The dividends are BOTH ordinary and qualified (i.e., put in both places).
6) For the Qualified Business Income Deduction on Line 10 of the Form 1040, enter
20% of the bottom-line amount from Schedule C (Line 31 on Schedule C)
PLUS 20% of the bottom-line amount from Richard’s total partnership
income (Schedule 1, Line 5) as the amount of your deduction.
7) Enter Richard’s partnership income (ordinary business income + guaranteed
payment) on Schedule 1, Line 5. For this project, you do NOT need to include
Schedule E (which is normally required for partnership income).
8) You are NOT required for this project to fill out Schedule B for the taxable
interest.
9) When you assemble the forms to upload into Canvas, include only the tax forms
and the supporting schedules (do NOT include any of the information reports
such as W-2, 1099s, etc.).
10) Round all numbers to the nearest dollar and leave the “cents” column blank. Any
lines on the return that are not relevant should be left blank (thus, do not put
zeros on every line that does not apply to the taxpayer). Be sure that you include
totals on each of the lines with “bullets” in front of them, and make sure that you
check any boxes requiring a yes/no answer. Also be sure to fill out the required
information at the top of all of the schedules.
11) Do NOT sign or date the return for the client.
12) Be sure to fill in your client’s name and SSN on the top of every form.
13) CHECK FIGURES:
a. The amount on Line 31 of Schedule C is between $10,000 and
$20,000.
b. The refund or amount owed on the Form 1040 is under $1,000.

SCHEDULE 1 (Form 1040) 2023

Additional Income and Adjustments to Income Department of the Treasury Internal Revenue Service

Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

Attachment Sequence No. 01

Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number

Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . 1 2a Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a

b Date of original divorce or separation agreement (see instructions): 3 Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . . 3 4 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . 5 6 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . 6 7 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . 7 8 Other income:

a Net operating loss . . . . . . . . . . . . . . . . . . . 8a ( ) b Gambling . . . . . . . . . . . . . . . . . . . . . . 8b c Cancellation of debt . . . . . . . . . . . . . . . . . . 8c d Foreign earned income exclusion from Form 2555 . . . . . . . 8d ( ) e Income from Form 8853 . . . . . . . . . . . . . . . . . 8e f Income from Form 8889 . . . . . . . . . . . . . . . . . 8f g Alaska Permanent Fund dividends . . . . . . . . . . . . . 8g h Jury duty pay . . . . . . . . . . . . . . . . . . . . . 8h i Prizes and awards . . . . . . . . . . . . . . . . . . . 8i j Activity not engaged in for profit income . . . . . . . . . . . 8j k Stock options . . . . . . . . . . . . . . . . . . . . . 8k l Income from the rental of personal property if you engaged in the rental

for profit but were not in the business of renting such property . . . 8l m Olympic and Paralympic medals and USOC prize money (see

instructions) . . . . . . . . . . . . . . . . . . . . . 8m n Section 951(a) inclusion (see instructions) . . . . . . . . . . 8n o Section 951A(a) inclusion (see instructions) . . . . . . . . . . 8o p Section 461(l) excess business loss adjustment . . . . . . . . 8p q Taxable distributions from an ABLE account (see instructions) . . . 8q r Scholarship and fellowship grants not reported on Form W-2 . . . 8r s Nontaxable amount of Medicaid waiver payments included on Form

1040, line 1a or 1d . . . . . . . . . . . . . . . . . . . 8s ( ) t Pension or annuity from a nonqualifed deferred compensation plan or

a nongovernmental section 457 plan . . . . . . . . . . . . 8t u Wages earned while incarcerated . . . . . . . . . . . . . 8u z Other income. List type and amount:

8z 9 Total other income. Add lines 8a through 8z . . . . . . . . . . . . . . . . . . 9

10 Combine lines 1 through 7 and 9. This is your additional income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 . . . . . . . . . . . . . . . . . . . . . 10

For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2023

Schedule 1 (Form 1040) 2023 Page 2

Part II Adjustments to Income 11 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Certain business expenses of reservists, performing artists, and fee-basis government

officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . 13 14 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . 14 15 Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . . 15 16 Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . . 16 17 Self-employed health insurance deduction . . . . . . . . . . . . . . . . . . 17 18 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . 18 19a Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a

b Recipient’s SSN . . . . . . . . . . . . . . . . . . . . . . c Date of original divorce or separation agreement (see instructions):

20 IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . . 21 22 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . 22 23 Archer MSA deduction . . . . . . . . . . . . . . . . . . . . . . . . . 23 24 Other adjustments:

a Jury duty pay (see instructions) . . . . . . . . . . . . . . 24a b Deductible expenses related to income reported on line 8l from the

rental of personal property engaged in for profit . . . . . . . . 24b c Nontaxable amount of the value of Olympic and Paralympic medals

and USOC prize money reported on line 8m . . . . . . . . . . 24c d Reforestation amortization and expenses . . . . . . . . . . . 24d e Repayment of supplemental unemployment benefits under the Trade

Act of 1974 . . . . . . . . . . . . . . . . . . . . . . 24e f Contributions to section 501(c)(18)(D) pension plans . . . . . . . 24f g Contributions by certain chaplains to section 403(b) plans . . . . 24g h Attorney fees and court costs for actions involving certain unlawful

discrimination claims (see instructions) . . . . . . . . . . . . 24h i

Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations . . . . . . . . . . . . . . . . . . . 24i

j Housing deduction from Form 2555 . . . . . . . . . . . . . 24j k Excess deductions of section 67(e) expenses from Schedule K-1 (Form

1041) . . . . . . . . . . . . . . . . . . . . . . . . 24k z Other adjustments. List type and amount:

24z 25 Total other adjustments. Add lines 24a through 24z . . . . . . . . . . . . . . . 25 26 Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on

Form 1040, 1040-SR, or 1040-NR, line 10 . . . . . . . . . . . . . . . . . . 26 Schedule 1 (Form 1040) 2023

Version A, Cycle 10

INTERNAL USE ONLY DRAFT AS OF July 28, 2023

SCHEDULE 1

(Form 1040)

2023

2023. Cat. No. 71479F.

Additional Income and Adjustments to Income

Department of the Treasury Internal Revenue Service

Attach to Form 1040, 1040-SR, or 1040-NR.

Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

Attachment 

Sequence No. 01 

Attachment Sequence No. 01. For Paperwork Reduction Act Notice, see your tax return instructions.

Part I

Additional Income

1

Taxable refunds, credits, or offsets of state and local income taxes          

1

2

a

Alimony received          

2a

b

3

Business income or (loss). Attach Schedule C          

3

4

Other gains or (losses). Attach Form 4797          

4

5

Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E          

5

6

Farm income or (loss). Attach Schedule F          

6

7

Unemployment compensation          

7

8

Other income:

a

Net operating loss          

8a

(                        )

b

Gambling          

8b

c

Cancellation of debt          

8c

d

Foreign earned income exclusion from Form 2555          

8d

(                        )

e

Income from Form 8853          

8e

f

Income from Form 8889          

8f

g

Alaska Permanent Fund dividends          

8g

h

Jury duty pay          

8h

i

Prizes and awards          

8i

j

Activity not engaged in for profit income          

8j

k

Stock options          

8k

l

Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property          

8l

m

Olympic and Paralympic medals and USOC prize money (see instructions)          

8m

n

Section 951(a) inclusion (see instructions)          

8n

o

Section 951A(a) inclusion (see instructions)          

8o

p

Section 461(l) excess business loss adjustment          

8p

q

Taxable distributions from an ABLE account (see instructions)          

8q

r

Scholarship and fellowship grants not reported on Form W-2          

8r

s

Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d          

8s

(                        )

t

Pension or annuity from a nonqualifed deferred compensation plan or a nongovernmental section 457 plan          

8t

u

Wages earned while incarcerated          

8u

z

8z

9

Total other income. Add lines 8a through 8z          

9

10

Combine lines 1 through 7 and 9. This is your additional income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8          

10

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 71479F

Schedule 1 (Form 1040) 2023

Schedule 1 (Form 1040) 2023

Page 2

Part II

Adjustments to Income

11

Educator expenses          

11

12

Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106          

12

13

Health savings account deduction. Attach Form 8889          

13

14

Moving expenses for members of the Armed Forces. Attach Form 3903          

14

15

Deductible part of self-employment tax. Attach Schedule SE          

15

16

Self-employed SEP, SIMPLE, and qualified plans          

16

17

Self-employed health insurance deduction          

17

18

Penalty on early withdrawal of savings          

18

19

a

Alimony paid          

19a

b

Recipient’s SSN          

c

20

IRA deduction          

20

21

Student loan interest deduction          

21

22

Reserved for future use          

22

23

Archer MSA deduction          

23

24

Other adjustments:

a

Jury duty pay (see instructions)          

24a

b

Deductible expenses related to income reported on line 8l from the rental of personal property engaged in for profit          

24b

c

Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m          

24c

d

Reforestation amortization and expenses          

24d

e

Repayment of supplemental unemployment benefits under the Trade Act of 1974          

24e

f

Contributions to section 501(c)(18)(D) pension plans          

24f

g

Contributions by certain chaplains to section 403(b) plans          

24g

h

Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions)          

24h

i

Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations          

24i

j

Housing deduction from Form 2555          

24j

k

Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041)          

24k

z

24z

25

Total other adjustments. Add lines 24a through 24z          

25

26

Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10          

26

Schedule 1 (Form 1040) 2023

8.2.1.3144.1.471865.466429

Additional Income and Adjustments to Income

SE:W:CAR:MP

2023 Schedule 1 (Form 1040)

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,

SCHEDULE 2 (Form 1040) 2023

Additional Taxes Department of the Treasury Internal Revenue Service

Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

Attachment Sequence No. 02

Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number

Part I Tax

1 Alternative minimum tax. Attach Form 6251 . . . . . . . . . . . . . . . . 1

2 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . 2

3 Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17 . . 3 Part II Other Taxes

4 Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . 4

5 Social security and Medicare tax on unreported tip income. Attach Form 4137 . . . . . . . . . . . . . . . . . . 5

6 Uncollected social security and Medicare tax on wages. Attach Form 8919 . . . . . . . . . . . . . . . . . . . . . 6

7 Total additional social security and Medicare tax. Add lines 5 and 6 . . . . . . 7

8 Additional tax on IRAs or other tax-favored accounts. Attach Form 5329 if required.

If not required, check here . . . . . . . . . . . . . . . . . . . . . 8

9 Household employment taxes. Attach Schedule H . . . . . . . . . . . . . 9

10 Repayment of first-time homebuyer credit. Attach Form 5405 if required . . . . . 10

11 Additional Medicare Tax. Attach Form 8959 . . . . . . . . . . . . . . . . 11

12 Net investment income tax. Attach Form 8960 . . . . . . . . . . . . . . . 12

13 Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance from Form W-2, box 12 . . . . . . . . . . . . . . . . . . . . 13

14 Interest on tax due on installment income from the sale of certain residential lots and timeshares . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

15 Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

16 Recapture of low-income housing credit. Attach Form 8611 . . . . . . . . . . 16

(continued on page 2) For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U Schedule 2 (Form 1040) 2023

Schedule 2 (Form 1040) 2023 Page 2

Part II Other Taxes (continued)

17 Other additional taxes:

a Recapture of other credits. List type, form number, and amount:

17a

b Recapture of federal mortgage subsidy, if you sold your home see instructions . . . . . . . . . . . . . . . . . . . 17b

c Additional tax on HSA distributions. Attach Form 8889 . . . . 17c

d Additional tax on an HSA because you didn’t remain an eligible individual. Attach Form 8889 . . . . . . . . . . . . . . 17d

e Additional tax on Archer MSA distributions. Attach Form 8853 . 17e

f Additional tax on Medicare Advantage MSA distributions. Attach Form 8853 . . . . . . . . . . . . . . . . . . . . . 17f

g Recapture of a charitable contribution deduction related to a fractional interest in tangible personal property . . . . . . . 17g

h Income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A . . . 17h

i Compensation you received from a nonqualified deferred compensation plan described in section 457A . . . . . . . 17i

j Section 72(m)(5) excess benefits tax . . . . . . . . . . . 17j

k Golden parachute payments . . . . . . . . . . . . . . 17k

l Tax on accumulation distribution of trusts . . . . . . . . . 17l

m Excise tax on insider stock compensation from an expatriated corporation . . . . . . . . . . . . . . . . . . . . . 17m

n Look-back interest under section 167(g) or 460(b) from Form 8697 or 8866 . . . . . . . . . . . . . . . . . . . . 17n

o Tax on non-effectively connected income for any part of the year you were a nonresident alien from Form 1040-NR . . . . 17o

p Any interest from Form 8621, line 16f, relating to distributions from, and dispositions of, stock of a section 1291 fund . . . . 17p

q Any interest from Form 8621, line 24 . . . . . . . . . . . 17q

z Any other taxes. List type and amount:

17z

18 Total additional taxes. Add lines 17a through 17z . . . . . . . . . . . . . . 18

19 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . 19

20 Section 965 net tax liability installment from Form 965-A . . . 20 21 Add lines 4, 7 through 16, and 18. These are your total other taxes. Enter here and

on Form 1040 or 1040-SR, line 23, or Form 1040-NR, line 23b . . . . . . . . . 21 Schedule 2 (Form 1040) 2023

Version A, Cycle 3

INTERNAL USE ONLY DRAFT AS OF February 23, 2023

SCHEDULE 2

(Form 1040)

2023

2023. Cat. No. 71478U.

Additional Taxes

Department of the Treasury Internal Revenue Service

Attach to Form 1040, 1040-SR, or 1040-NR.

 Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

Attachment 

Sequence No. 02 

Attachment Sequence No. 02. For Paperwork Reduction Act Notice, see your tax return instructions.

Part I

Tax

1

Alternative minimum tax. Attach Form 6251          

1

2

Excess advance premium tax credit repayment. Attach Form 8962          

2

3

Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17          

3

Part II

Other Taxes

4

Self-employment tax. Attach Schedule SE          

4

5

Social security and Medicare tax on unreported tip income. Attach Form 4137          

5

6

Uncollected social security and Medicare tax on wages. Attach Form 8919          

6

7

Total additional social security and Medicare tax. Add lines 5 and 6          

7

8

Additional tax on IRAs or other tax-favored accounts. Attach Form 5329 if required.          

8

9

Household employment taxes. Attach Schedule H          

9

10

Repayment of first-time homebuyer credit. Attach Form 5405 if required          

10

11

Additional Medicare Tax. Attach Form 8959          

11

12

Net investment income tax. Attach Form 8960          

12

13

Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance from Form W-2, box 12          

13

14

Interest on tax due on installment income from the sale of certain residential lots and timeshares          

14

15

Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000          

15

16

Recapture of low-income housing credit. Attach Form 8611          

16

(continued on page 2)

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 71478U

Schedule 2 (Form 1040) 2023

Schedule 2 (Form 1040) 2023

Page 2

Part II

Other Taxes (continued)

17

Other additional taxes:

a

Recapture of other credits. List type, form number, and amount:

17a

b

Recapture of federal mortgage subsidy, if you sold your home see instructions          

17b

c

Additional tax on HSA distributions. Attach Form 8889          

17c

d

Additional tax on an HSA because you didn’t remain an eligible individual. Attach Form 8889          

17d

e

Additional tax on Archer MSA distributions. Attach Form 8853          

17e

f

Additional tax on Medicare Advantage MSA distributions. Attach Form 8853          

17f

g

Recapture of a charitable contribution deduction related to a fractional interest in tangible personal property          

17g

h

Income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A          

17h

i

Compensation you received from a nonqualified deferred compensation plan described in section 457A          

17i

j

Section 72(m)(5) excess benefits tax          

17j

k

Golden parachute payments          

17k

l

Tax on accumulation distribution of trusts          

17l

m

Excise tax on insider stock compensation from an expatriated corporation          

17m

n

Look-back interest under section 167(g) or 460(b) from Form 8697 or 8866          

17n

o

Tax on non-effectively co

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