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Please see attached file. I need help figuring out that personal tax return did not include the partnership income.

Here is the information for the tax return -- the return is attached. I just need help figuring out how to include the partnership income.

Emma Shire lives at 5258 Mountain Skies Road, College Park, MD 20742. She is a human resource manager at Clifford Company, 896 Western Avenue, College Park, MD 20742 (employer identification number XX-1111111). She is also a 50/50 partner in a local clothing boutique. Ms. Shireis divorced and has two small children, Kelly Shire (DOB 2/3/2012) and Jordan Shire (DOB 5/19/2006). Ms. Shire was born on January 14, 1976, and her Social Security number is 123-45-6789. She does not want to contribute $3 to the Presidential Election Campaign Fund.

The following information is shown on Ms. Shire's 2014 Wage and Tax Statement (Form W-2):
Line Description Amount
1 Wages, tips, other compensation
$65,000.00
2 Federal income tax withheld
10,500.00
3 Social Security wages
65,000.00
4 Social Security tax withheld
4,030.00
5 Medicare wages and tips
65,000.00
6 Medicare tax withheld
942.50
15 State: Maryland
16 State wages, tips, etc.
65,000.00
17 State income tax withheld
1,650.00

Additional Information:
 _Received interest of $1,750 from Maryland Federal Savings and Loan Association and $250 from Maryland State Bank. Each financial institution reported the interest income on a Form 1099-INT
 _Received qualified dividends of $600 from Blue Corporation, $750 from Green Corporation, and $368 from Orange Corporation. Each corporation reported dividend payments on a Form 1099-DIV.
 _Received child support of $15,000 during the year.
 _Received a $900 income tax refund from the state of Maryland on April 29, 2014.
 _Reported total itemized deductions of $10,200 on 2013 federal income tax return, which included $2,200 of state income tax withheld by her employer.
 _Received K-1 indicating her share of the clothing boutique's ordinary business income (loss) - Line 1 is $23,580. No guaranteed payments were made or dividends were received by the partnership.
 _Acquired 100 shares of Ace Corporation common stock for $30 a share on January 12, 2014. She sold the stock on December 19 for $55 a share.
 _Paid $1,300 for prescription medicines and $1,875 in physician and hospital bills. Medical insurance premiums were paid by her employer.
 _Paid real property taxes of $1,675 on her personal residence and interest on her home mortgage was $4,285, and interest paid to credit card companies totaled $360.
 _Contributed $25 each week to her church and $15 each week to United Way.
 _Paid $1,500 in estimated federal income taxes throughout the year.

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Solution Summary

This solution indicates where partner income is entered on IRS tax form 1040, and indicates which additional forms must be filed with IRS and which are attached to form 1040.

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  • MPH, Walden University
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