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Federal Income Tax Template (FITT) Copyright (C) 1984, 1985, 1986 by Ronald A. Ruel A Tax Preparation & Planning Aid For Users Of Lotus 1-2-3 (tm) 1986 Version T A B L E O F C O N T E N T S 1. PREFACE....................................................2 2. INTRODUCTION...............................................3 2.1. What is FITT?.........................................3 2.2. What FITT is not......................................3 2.3. Hardware Requirements.................................4 2.4. Software Requirements.................................4 2.5. FITT Files............................................5 3. OVERVIEW...................................................6 4. USING THE MENUS............................................8 4.1. The DATA, GO TO, and REINIT menus.....................8 4.2. The PRINT menu.......................................11 4.3. How to make a selection from a menu..................13 4.4. A shortcut for reaching a menu option................13 4.5. The Install Menu.....................................13 5. ENTERING YOUR INCOME TAX DATA.............................15 5.1. Order Of Data Entry..................................15 5.2. Cell protection......................................15 5.3. Two alternative methods for data entry...............16 5.4. A Few Words About Recalculation......................17 5.5. Data Entry Specifics.................................17 5.5.1. Form 1040 - U.S. Individual Income Tax Return.18 5.5.2. Form 2106 - Employee Business Expenses........19 5.5.3. Form 2119 - Sale Or Exchange Of Principal Res.19 5.5.4. Form 2210 - Underpayment Of Estimated Tax By .20 5.5.5. Form 4684 - Casualties And Thefts.............20 5.5.6. Schedule A - Itemized Deductions..............20 5.5.7. Schedule B - Interest And Dividend Income.....21 5.5.8. Schedule D - Capital Gains And Losses.........22 5.5.9. Schedule E - Supplemental Income Schedule.....22 5.5.10. Schedule G - Income Averaging................22 5.5.11. Schedule R - Credit For The Elderly And Disa.23 5.5.12. Schedule SE - Comp Of Soc Secur Self-Emp Tax.23 5.5.13. Schedule W - Deduction For A Married Couple..23 5.6. Reinitializing Specific Forms and Schedules..........23 6. DISCLAIMER................................................25 Appendices A. Form 1040 - U.S. Individual Income Tax Return-Front Sheet.26 B. Form 1040 - U.S. Individual Income Tax Return-Back Sheet..28 C. Form 2106 - Employee Business Expenses....................29 D. Form 2119 - Sale Or Exchange Of Principal Residence.......31 E. Form 2210 - Underpay Of Est Tax By Individuals-Front Sht..33 F. Form 2210 - Underpay Of Est Tax By Individuals-Back Sheet.34 G. Form 2441 - Credit For Child And Dependent Care Expenses..35 H. Form 3903 - Moving Expense Adjustment.....................36 I. Form 4684 - Casualties And Thefts-Front Sheet.............37 J. Form 4684 - Casualties And Thefts-Back Sheet..............38 K. Schedule A - Itemized Deductions..........................40 L. Schedule B - Interest And Dividend Income.................41 M. Schedule C - Profit Or (Loss) From Business...............43 N. Schedule D - Capital Gains And Losses-Front Sheet.........45 O. Schedule D - Capital Gains And Losses-Back Sheet..........47 P. Schedule E - Supplemental Income Schedule-Front Sheet.....48 Q. Schedule E - Supplemental Income Schedule-Back Sheet......50 R. Schedule F - Farm Income And Expenses - Front Sheet.......52 S. Schedule F - Farm Income And Expenses - Back Sheet........54 T. Schedule G - Income Averaging.............................55 U. Schedule R - Credit For Elderly & The Disabled-Front Sht..57 V. Schedule R - Credit For Elderly & The Disabled-Back Sheet.59 W. Schedule SE - Computation Of Social Sec. Self-Employ. Tax.61 X. Schedule W - Deduct. For A Married Couple When Both Work..62 L I S T O F T A B L E S 4-1: DATA, GO TO, & REINIT menu trees.........................10 4-2: PRINT Menu Tree..........................................12 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 1. PREFACE If you decide to make use of this program, and find it to be of value, your contribution ($35 is suggested) will be appreciated. Ronald A. Ruel 665 Clinton Avenue Washington Township, N.J. 07675 Regardless of whether you make a contribution, you are encouraged to copy and share this program with others under the following guidelines: Do not distribute this program on other than a private, non-commercial basis. Do not distribute this program in connection with any other product. Do not make the program available for any consideration or fee. A nominal fee not to exceed $6.00 may be charged to defray the cost of reproduction and distribution. This program must be distributed in unmodified form, and include this documentation file. Reference is made in this manual to the following: Lotus 1-2-3 is a copyrighted program of the Lotus Development Corporation. IBM is a trademark of the International Business Machines Corporation. 2 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 2. INTRODUCTION This manual should help you get the most out of using the Federal Income Tax Template. It is not necessary for you to read this document all the way through before you get started. FITT is menu driven, and its use should be more or less self-explanatory. If you wish to get started immediately, start up Lotus 1-2-3, retrieve the worksheet file called FITT86.WKS, and watch what happens. This document assumes that you have some basic familiarity with Lotus 1-2-3. You should know how to retrieve and store worksheets. You should also understand the concepts of cell protection, and recalculation. These topics will be touched on briefly, but this is not intended to be a tutorial on how to use Lotus 1-2-3. 2.1. What is FITT? FITT stands for Federal Income Tax Template. FITT is a Lotus 1-2-3 worksheet (or template) intended to simplify the process of preparing a Federal Income Tax Return. It has been designed to be easy to use. You do not have to be an expert user of Lotus 1-2-3 in order to take advantage of the capabilities of FITT. FITT contains a total of 18 tax forms and schedules, making it one of the most comprehensive tax programs available anywhere. This means that the vast majority of taxpayers can prepare their entire Federal Income Tax return using FITT86. In fact, most people will need to use only four or five of these forms and schedules. You use FITT by simply filling in the "blanks" on the appropriate tax forms shown on the screen in the same way you would normally fill out the actual forms. FITT takes care of all the calculations that need to be made including carrying over information from one form to another, looking up numbers in the tax tables, etc. After you've entered the information, FITT will print out those forms that you need in order to file your return. According to the Internal Revenue Service, you cannot computer-generate a tax form that requires a signature and establish tax liability. This means that the 1040 cover page must be government-issue. 2.2. What FITT is not FITT is not a tax advisor. No tax software package can be a substitute for competent professional advice in what is clearly a complex field. If you are in doubt about any aspect of your income tax preparation, do yourself a favor and consult an expert. 3 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel Furthermore, this document is not an income tax instruction manual. Many of the instructions from the tax forms have been reproduced in an abbreviated form within FITT for your convenience, however it is a good idea to have the actual 1040 package of forms and instructions available for reference as you use this program. 2.3. Hardware Requirements FITT will run on any computer that can run Lotus 1-2-3, and has sufficient memory to accommodate the FITT worksheet. The minimum memory required may vary from machine to machine, and even from configuration to configuration on a given machine. On an IBM Personal Computer running PCDOS 2.1, and Lotus 1-2-3 Release 1A, FITT requires 320K of memory. If you are using the new Release 2 of 1-2-3, 384K of memory will be required. Hopefully, this means that FITT can be run on most personal computers which can run Lotus 1-2-3. If you don't have sufficient memory to load the entire worksheet, Lotus 1-2-3 will beep and display the MEMORY FULL indicator in the upper left corner of the screen. If this is the case, you should check to see how much of the worksheet got loaded in. You may find that FITT can still be used. Lotus 1-2-3 loads worksheets a row at a time starting from the upper left corner and ending with the lower right corner. The structure of FITT has been designed with this in mind. The most critical portions of the worksheet, and the most commonly used forms and schedules have been positioned so that they will be loaded into memory first. Therefore, it is quite likely that you can still make use of FITT without the benefit of some of the less frequently used forms at the bottom of the worksheet. If you get the MEMORY FULL error message, press the Esc key to clear the error. Then use the GO TO menu to move to each of the forms and schedules you need to prepare your particular tax return and check them to see if they are intact. There are no special printer requirements. The tax forms and schedules are printed without the use of set-up strings to perform any special printer control functions. This enables any text printer to be used. All of the printed reports are based on an 80 character print line, and a 66 line page. 2.4. Software Requirements FITT was written and tested using Lotus 1-2-3 Release 1A. I do not know whether there were any differences in the worksheet structure, or the macro command language under release 1 that will prevent FITT from working properly. If you've got release 4 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 1A, there is no problem. If you've got release 1, try it and see if it works. FITT86 is compatible with the new 1-2-3 release 2 as well. The primary difference is the the higher minimum memory requirement (384K versus 320K) due to the increased size of 1-2-3. The first time you retrieve FITT, it will take longer than usual because Lotus 1-2-3 is converting the file from Release 1 to Release 2 format as it loads it in. When you save it, the file name extension becomes WK1 instead of WKS, signifying that the worksheet is in Release 2 format. The next time this file is retrieved, the conversion won't have to be repeated, and it will load more quickly. Note that the original file (FITT86.WKS) remains intact. 2.5. FITT Files FITT consists of a collection of three separate files. The main worksheet file is named FITTyy.WKS. The yy after the acronym signifies the last two digits of the tax year for which this version was designed. In this case, the file is named FITT86.WKS because it is the version to be used in preparing the federal tax return for the 1986 tax year. Those of you who are users of Lotus 1-2-3 will recognize the familiar WKS extension which signifies that a file is a Lotus 1-2-3 release 1A worksheet. This documentation is contained in a file called FITTyy.DOC. It is a plain ASCII text file which can be displayed or printed by using the DOS TYPE command. The third file is named STATESyy.WKS. It contains the optional state sales tax tables for all 46 states that have a sales tax. If you are fortunate enough to live in a state without a sales tax, or you do not itemize your deductions using Schedule A, then you won't need this file. To run FITT, start up Lotus 1-2-3, place a diskette containing files FITTyy.WKS and STATESyy.WKS in the drive which is the default startup directory for 1-2-3 (usually B), or copy these two files into the Lotus default subdirectory on your hard disk, and enter the following key strokes: /FRFITTyy~ (~ signifies the ENTER key.) FITT will start up by itself, and display the title screen. Pressing the ENTER key will get you to the main menu. That's all there is to it. It is important that you keep the original worksheet file intact in case you decide to reinitialize any of the forms or schedules back to their original state. There is a set of menus to facilitate this, but it requires that the original copy of FITTyy.WKS be available in the default directory of 1-2-3. For this reason, you should make a copy of FITTyy.wks, assigning it a different name, and use this copy instead of the original. 5 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 3. OVERVIEW FITT has been designed to be as easy to use as possible. The tax forms and schedules included in FITT have been modeled after the actual forms. A "fill-in-the-blanks" approach is used so that the data can be entered in the same way as it is on the actual tax forms. Some changes in format were inevitable due to constraints imposed by the display screen. The form layout and text are close enough to the actual forms so that there should be no confusion. While FITT will considerably simplify tax return preparation, its greatest value is probably in tax planning, and examining the implications of different filing strategies. For example, it can be used to easily determine whether a married couple would be better off filing separate returns, or filing a joint return. It can also show you whether income averaging would be to your advantage. FITT can also be used to prepare Pro Forma returns during the year to estimate your tax liability in advance, so you can take action to minimize it. In addition, it can help you determine the right amount to be withheld from your salary. If too much is being withheld, then you're giving Uncle Sam an interest-free loan. If too little is being withheld, you may be subject to penalties and have to make estimated tax payments. Unfortun- ately, the sweeping changes in the 1987 tax code limit FITT's usefulness in this regard. FITT is based on the U.S. Individual Income Tax Return, and contains the following forms and schedules: Form 1040 U.S. Individual Income Tax Return Form 2106 Employee Business Expenses Form 2119 Sale Or Exchange Of Principal Residence Form 2210 Underpayment Of Estimated Tax By Individuals Form 2441 Credit For Child And Dependent Care Expenses Form 3903 Moving Expense Adjustment Form 4684 Casualties And Thefts Schedule A Itemized Deductions Schedule B Interest And Dividend Income Schedule C Profit Or (Loss) From Business Schedule D Capital Gains And Losses Schedule E Supplemental Income Schedule Schedule F Farm Income And Expenses Schedule G Income Averaging Schedule R Credit For The Elderly And The Permanently And Totally Disabled Schedule SE Computation Of Social Security Self-Employment Tax Schedule W Deduction For A Married Couple When Both Work In addition, FITT contains the Tax Rate Schedules X (Single 6 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel Taxpayers), Y (Married Taxpayers Filing Joint Returns or Filing Separate Returns, and Qualifying Widows and Widowers), and Z (Unmarried Heads of Household). The Tax Table is not used. The IRS states that it should be used by persons with taxable incomes of less than $50,000. In these cases, FITT uses the Tax Rate Schedules to achieve the same result by rounding taxable income down to the nearest $50 increment, and adding $25 to place it in the middle of the bracket before performing the calculation specified by the appropriate Tax Rate Schedule. For those taxpayers who wish to itemize their deductions, the Optional State Sales Tax Tables have been provided for every state. When FITT is retrieved, the title screen will appear. Pressing the enter key causes the main menu screen to be displayed. You will notice that a version letter appears on this screen. FITT is initially released as Version A for a particular tax year. Should subsequent versions be released with improvements or corrections, the version letter will be updated accordingly. This will enable you to identify whether or not you have the most current version. 7 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 4. USING THE MENUS FITT utilizes menus which appear on the top two lines of the screen. The first line contains the available choices on that particular menu. You select a choice by using the left and right arrow keys to move the pointer from one item to another. You will note that as the pointer is moved to each item, the item appears in inverse video. The text on the line below also changes to provide a brief description of that particular menu choice. The main menu choices are: DATA (to enter your tax data), GO TO (to quickly go to a particular form or schedule), INSTALL (to install one of the optional state sales tax tables), PRINT (to print out one or more of your completed forms), REINIT (to reinitialize a particular form or schedule), and QUIT (to leave the menu system.) Each of these options will be described in more detail in the following sections. The menu structure has been designed so that at any point, you can return to the previous menu used, or return to the main menu. This flexibility permits you to efficiently move back and forth through the various choices. 4.1. The DATA, GO TO, and REINIT menus The DATA, GO TO, and REINIT choices on the main menu bring up very similar looking menus, the primary difference being the operation they invoke. DATA allows you to enter data on one or more forms using a guided "fill-in-the-blanks" approach. GO TO provides you with a facility to quickly "jump" from one form to another. REINIT allows you to reinitialize a particular form or schedule back to its original state using the copy on the original FITTyy.WKS file on the distribution disk. All of the forms are grouped within one set of menus, and the schedules grouped within a second set. The sub-menus for forms present the menu choices in numerical order. Thus, Form 1040 is shown first, and Form 5695 is shown last. Schedules are ordered alphabetically, with Schedule A appearing first, and Schedule M appearing last. Many of the forms and schedules supplied by the Internal Revenue Service must be filled out on both the front and back sides. This structure has been preserved in FITT. The front and back sides of the affected forms are listed as separate menu choices within the DATA, GO TO, and REINIT menus even though they are part of the same form. In FITT, a row of equal signs is used to identify the start and the end of a physical page on the corresponding IRS forms and schedules. For example, Form 1040 consists of one sheet of paper on which both front and back sides are used. The start and end 8 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel of the front sheet are identified with a row of equal signs, and the start and end of the back sheet are identified in the same fashion (see Appendix A & B). This convention makes it easier to navigate throughout the worksheet, and know when you've moved from one form to another, or one side to another. The distinction between front and back sheets is not made within the PRINT menus. My rationale is that a form or schedule should always be printed in its entirety. The GO TO, DATA, and REINIT menus deal specifically with the front and back sheets because you may wish to enter, change, or view data on one side of a form only. The structure of the DATA, GOTO, and REINIT menu trees are shown in the following table: 9 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel Table 4-1: DATA, GO TO, & REINIT menu trees MENU CHOICE DESCRIPTION FORMS Perform operation on selected forms ----------------------------------------------------------- 1040-FRT U.S. Individual Income Tax Return - Front sheet 1040-BAK U.S. Individual Income Tax Return - Back sheet 2106 Employee Business Expenses 2119 Sale or Exchange of Principal Residence 2210-FRT Underpayment of Estimated Tax by Individuals - Front sheet NEXT Next menu: 2210 - Back sheet, 2441, 3903, & 4684 PREVIOUS Previous menu: Perform operation on selected forms or schedules MAIN Return to the main menu ----------------------------------------------------------- 2210-BAK Underpayment of Estimated Tax by Individuals - Back sheet 2441 Credit for Child and Dependent Care Expenses 3903 Moving Expense Adjustment 4684-FRT Casualties and Thefts - Front sheet 4684-BAK Casualties and Thefts - Back sheet PREVIOUS Previous menu: 1040, 2106, 2119, & 2210 - Front sheet MAIN Return to the main menu ----------------------------------------------------------- SCHEDULES Perform operation on selected schedules ----------------------------------------------------------- A Itemized Deductions B Interest and Dividend Income C Profit or (Loss) from Business D-FRT Capital Gains and Losses - Front sheet D-BAK Capital Gains and Losses - Back sheet NEXT Next menu: E, F, & G PREVIOUS Previous menu: Perform operation on selected forms or schedules MAIN Return to the main menu ----------------------------------------------------------- E-FRT Supplemental income schedule - Front Sheet E-BAK Supplemental income schedule - Back Sheet F-FRT Farm Income and Expenses - Front Sheet F-BAK Farm Income and Expenses - Back Sheet G Income Averaging NEXT Next menu: R, SE, & W PREVIOUS Previous menu: A, B, C, & D MAIN Return to the main menu ----------------------------------------------------------- R-FRT Credit for the Elderly and the Permanently and Totally Disabled - Front Sheet R-BAK Credit for the Elderly and the Permanently and Totally Disabled - Back Sheet SE Computation of Social Security Self- Employment Tax W Deduction for a Married Couple When Both Work PREVIOUS Previous menu: E, F, & G MAIN Return to the main menu ----------------------------------------------------------- 10 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 4.2. The PRINT menu The print menu allows you to select individual forms and schedules to be printed. In addition, groups of forms and schedules can be printed automatically. Each printed page contains a standard heading which consists of the date on the left, a title in the center, and a page number on the right. The title consists of the word "Schedule" or "Form" followed by the appropriate number or letter, and the words "- Front Sheet" or "- Back Sheet" where applicable. The page number corresponds to the printed page, and it always begins with 1 for each form or schedule, even if a group of them are being printed at one time. For example, Form 2119 - Sale or Exchange of Principal Residence (Appendix D) requires two printed pages, even though the IRS form is contained entirely on the front sheet. Schedule D on the other hand consists of a front sheet (Appendix N) printed as pages 1 and 2, and a back sheet (Appendix O) printed as page 3. The printouts have been designed to make the page breaks fall in a logical place. This is accomplished by dynamically changing the top and bottom margins during the printing process. Therefore you shouldn't think anything is wrong with your printer when some forms begin printing farther down the page than others. The page breaks were calculated on the basis of a 66 line page. Each form and schedule can be found in the appendices. They have been reproduced with the page breaks located where they actually occur when generated by FITT. The structure of the PRINT menu tree is shown in the following table: 11 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel Table 4-2: PRINT Menu Tree MENU CHOICE DESCRIPTION FORMS Print selected forms ----------------------------------------------------------- 1040 U.S. Individual Income Tax Return 2106 Employee Business Expenses 2119 Sale or Exchange of Principal Residence 2210 Underpayment of Estimated Tax by Individuals 2441 Credit for Child and Dependent Care Expenses NEXT Next menu: 3903, & 4684 PREVIOUS Previous menu: Print selected forms or schedules MAIN Return to the main menu ----------------------------------------------------------- 3903 Moving Expense Adjustment 4684 Casualties and Thefts PREVIOUS Previous menu: 1040, 2106, 2119, 2210, & 2441 MAIN Return to the main menu ----------------------------------------------------------- SCHEDULES Print selected schedules ----------------------------------------------------------- A Itemized Deductions B Interest and Dividend Income C Profit or (Loss) from Business D Capital Gains and Losses E Supplemental income schedule NEXT Next menu: F, G, R, SE & W PREVIOUS Previous menu: Print selected forms or schedules MAIN Return to the main menu ----------------------------------------------------------- F Farm Income and Expenses G Income Averaging R Credit for the Elderly and the Permanently and Totally Disabled SE Computation of Social Security Self- Employment Tax W Deduction for a Married Couple When Both Work PREVIOUS Previous menu: A, B, C, D, & E MAIN Return to the main menu ----------------------------------------------------------- 1040-ABD Print Form 1040, Schedule A, Schedule B, and Schedule D ----------------------------------------------------------- ALL-FRMS Print all forms (1040, 2106, 2119, 2210, 2441, 3903, 4684, and 5695) ----------------------------------------------------------- ALL-SCHS Print all schedules (A, B, C, D, E, F, G, R, SE, and W) ----------------------------------------------------------- ALL-F&S Print all forms and schedules ----------------------------------------------------------- MAIN Return to the main menu 12 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 4.3. How to make a selection from a menu You make your selection by moving the pointer using the left arrow and right arrow keys on the numeric pad on the right side of the keyboard until the desired choice is highlighted in inverse video. Pressing the ENTER key will then invoke your choice. Note that the Num Lock key must be disengaged in order for the arrow keys to work. Lotus 1-2-3 displays NUM in the bottom right corner of the screen if it is engaged. Pressing the Num Lock key once causes the indicator to disappear showing that it has been disengaged. The NEXT, PREVIOUS, and MAIN selections can be invoked by the method described above, or simply pressing the letter N key for NEXT, P for PREVIOUS, and M for MAIN. 4.4. A shortcut for reaching a menu option The main menu is automatically brought up after FITT is loaded, and the initial title screen is displayed. If you leave the menu command mode via the QUIT selection, you may wish to reactivate the main menu without restarting FITT. Holding down the Alt key and pressing the M key (Alt-M) will bring up the main menu anytime you are not in the menu command mode. Schedule A, for example, could be printed out by following these steps: - Bring up the main menu (Alt-M) if not under menu control - Select the PRINT option - Select the SCHEDULE option - Select the A option to print Schedule A There is a shortcut available for you to use if you wish. Holding down the Alt key and pressing the P key (Alt-P) will immediately bring up the PRINT menu, bypassing the first and second steps shown above. Similarly, Alt-D will bring up the DATA menu, Alt-G will bring up the GO TO menu, Alt-I will bring up the INSTALL menu, and Alt-R will bring up the REINIT menu. 4.5. The Install Menu The Install Menu is provided so that you can install the optional state sales tax table for your state in FITT. You only need to do this if you are itemizing your deductions using Schedule A, and you live in a state with a sales tax (unfortunately the odds are pretty good - 46 out of the 50 states have them.) 13 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel You invoke the Install option by selecting the INSTALL option on the main menu, or by pressing the Alt-I keys. This will cause the first of a series of menus with state names to appear at the top of the display. The states are listed in alphabetical order, with five states appearing on each menu. Choosing the NEXT selection will display the menu containing the next five states. The last three choices on the right side of each menu are X-NEXT Y-PREVIOUS and Z-MAIN. The X Y and Z prefix insures that these choices will never begin with the same letter as a state. This allows you to very rapidly move through the menus by pressing either X Y or Z without the possibility of inadvertently selecting a state name (eg. installing Nebraska when you wanted to specify NEXT.) If you happen to live in Alabama, you can install your state's sales tax table right from the first menu. Residents of Wyoming on the other hand will have to go through nine menus to get to their state. This should be a one-time procedure so it really isn't that inconvenient. If you are not sure which state tax table is currently installed in FITT, you can find out by invoking the INSTALL menu. This causes the current state tax table to be displayed on the screen. Each tax table contains the state name on the top line to eliminate any possible confusion. If you decide not to install a new state tax table, you can return to the main menu by specifying the MAIN option. If you wish to remove a tax table you've previously installed so that FITT won't compute any estimated sales tax at all, perform the install procedure and choose the file on the last menu named ZERO. ZERO is simply a tax table with all zeros. FITT is distributed with this table already installed. If a state tax table has already been installed, and you wish to install a table from another state, simply repeat the installation procedure, and the new table will replace the old one. Once you've installed the appropriate state tax table, it is a good idea to save a copy of the modified FITT worksheet so that you don't have to repeat the installation procedure again next time. It is also a good idea to save it under a different file name so you don't overwrite your original copy of FITT. For example: /FSMYFITT~ (~ signifies the ENTER key.) will cause Lotus 1-2-3 to save a copy of FITT under the name MYFITT. 14 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 5. ENTERING YOUR INCOME TAX DATA Entering your income tax data involves inputting your data on the appropriate forms which apply to you. It is unlikely that you will need to use every one of the forms and schedules that FITT provides. A few people will only need to use Form 1040. Most people will probably need to use Schedules B and D to report interest and dividend income and capital gains and losses. Many will need to use Schedule A to report itemized deductions. The remaining forms and schedules will apply to a relatively small number of taxpayers. They have been included to insure that FITT will have maximum utility for the vast majority of people. 5.1. Order Of Data Entry In general, the order in which you enter your data doesn't matter. I recommend that you start with Form 1040, and enter your filing status and exemptions. Then you should complete the income section line by line and use the supplementary forms when you reach a line that requires it. You can complete the forms in a different order if you wish. You will see the Lotus 1-2-3 indicators NA or ERR displayed in those locations where there are calculations which require data that has not yet been entered. This won't matter since the errors will be removed once all of the required data has been entered. There is one instance where you have to be careful about the order of data entry. If you are itemizing your deductions using Schedule A, you can deduct a higher amount than that taken from the state sales tax table on line 8a if your records document that you paid more sales tax. Before you compare the amount on line 8a with your own sales tax records, be sure that you've completed the front sheet of Form 1040, and Schedules B, D, and W if applicable. The reason is that the amount drawn from the sales tax table is based on total available income. FITT calculates total available income from information contained on the front sheet of Form 1040, and Schedules B, D, and W. If you compare the amount taken from the sales tax table before these other schedules are completed, the amount may be lower than it will be after these schedules are completed. Comparing this amount with your sales tax records might cause you to use the amount from your records when in fact the final amount taken from the sales tax table would have been higher. Thus, you would be cheating yourself out of the complete deduction to which you are entitled. 5.2. Cell protection To safeguard the contents of those cell locations which should not be altered by the user, the cell protection feature has been 15 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel employed. Those cells in which the user may enter data are in an "unprotected" state. These cells are highlighted in green if you are using a color monitor, or appear in a higher intensity if you are using a monochrome monitor. The remaining cells are "protected". If you attempt to enter data in one of these cells, you will hear a beep, and the message "Protected Cell" will appear in the lower left corner of the display. You will not be able to proceed until you reset the error condition by pressing the Esc key. 5.3. Two alternative methods for data entry There are two different methods that you can use to enter your data. The method you choose is purely a matter of personal preference. The first method is to use the DATA menu, and select the specific form or schedule in which you wish to enter data. This will cause the designated form to appear, and move the cell pointer (the rectangular bar in inverse video that points to the current cell) to the first unprotected cell. When you use the arrow keys on the numeric keypad to move the cell pointer, it will skip over any intervening protected cells to the next unprotected cell. In general, pressing the right arrow key will move you through the unprotected cells on a form in the proper sequence from top to bottom. Pressing the HOME key on the numeric keypad moves the cell pointer to the unprotected cell closest to the upper left corner of the form. Pressing the END key moves the cell pointer to the unprotected cell closest to the lower right corner of the form. When you are done entering data on the form, pressing the ENTER key without entering any data will return you back to the DATA menu. From here, you can select the next form or schedule that you wish to complete. The second method for entering data is to use the GO TO menu to move to the form or schedule of your choice. You then move the cell pointer to the unprotected cells on that form and enter the data. There are distinct differences between these two methods of data entry. When you use the DATA menu, you automatically skip from one unprotected cell to another which makes it easier to determine where the data needs to be entered. The disadvantage is that you may not see all parts of the form or schedule; you will only see those parts containing the unprotected cells. This becomes more of a problem when you wish to view the bottom of a form where the results are shown, but can't get there because there are no unprotected cells in that vicinity. You also don't have complete flexibility of movement. 16 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel When you enter data outside of the control of the menu system, you will have to move the cell pointer through a greater range of cell locations yourself. While this requires more manipulation of the cell pointer on your part, you do have the flexibility to move anywhere on the forms you wish. The choice of method is yours. 5.4. A Few Words About Recalculation Due to the size and complexity of FITT, recalculation of the worksheet takes several seconds (which really isn't very long - one of my 1-2-3 worksheets takes over 10 minutes). If this recalculation took place every time a data item was entered, the resulting pause after each entry would quickly become annoying. Since it isn't necessary to recalculate this often, the recalculation mode has been set to manual. This means that recalculation will only take place on demand when you press the F9 function key. The disadvantage of this approach is that you must remember to invoke recalculation before examining any results. You can tell if recalculation is required by looking for the CALC indicator in the lower right portion of the screen. If it is present, it signifies that something has been changed since the last time the worksheet was recalculated. If you enter data through the use of the DATA menu, the worksheet is automatically recalculated for you when you exit from entering data in a particular form or schedule. This is another advantage of the DATA menus; you don't have to be concerned about invoking recalculation. Whenever you initiate a printing operation from the print menu, the worksheet is recalculated first before printing. This guarantees that the printed information is correct and up-to- date. I'm emphasizing this subject because all too often, I've seen worksheets yield incorrect answers because the user (myself included) forgot to invoke recalculation before recording the results. 5.5. Data Entry Specifics In general, you need only follow the instructions contained in your 1040 package to supply the data required by FITT. In the sections that follow, specific areas that may require clarifi- cation are treated on a form-by-form basis. In forms where several alternative calculation methods are possible, certain "switches" may need to be set to indicate the method you've chosen. These "switches" will be described as well. 17 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 5.5.1. Form 1040 - U.S. Individual Income Tax Return On the top of this form, you will see space for identifying information like your name and social security number. Completing this section is entirely optional since it does not affect the calculations in any way. This is also true for the other tax forms and schedules as well. If you are preparing several alternate tax returns, you might wish to enter some text in this section to identify which alternative it is. In the Filing Status section, you must enter a number (1 through 5) to indicate your filing status instead of the check mark in a box on the real Form 1040. Entering a number outside this range will cause the ERR indicator to be displayed immediately to the right. In the exemptions section, you must enter a 1 on those parts of lines 6a, and 6b which apply to you. If anything other than a 0 or 1 is entered, the ERR indicator will be displayed to the right. Lines 6c, 6d, and 6e are checked to be sure that the numbers you enter are greater than or equal to zero. There are three cases where the use of a supplementary schedule is optional. FITT has been set up under the assumption that Schedule B for interest and dividend income will be used, and brings the totals from this schedule forward onto the lines 8 and 9a of Form 1040. Similarly, the appropriate amount from Schedule D for capital gains and losses is brought forward to line 14. If you do not have to file these schedules, it is possible for you to enter the data directly onto the appropriate lines of Form 1040. Line 8 contains the total interest income reported on Part I of Schedule B. If this total is $400 or less, you don't need to complete Part I of Schedule B. The amount can be entered directly on this line. This cell location has been protected to prevent accidental obliteration of its formula. (See section 5.2 for more information about cell protection.) Therefore you will have to unprotect this cell before you can enter your total interest income. You cannot unprotect a cell when you have entered data entry mode via the DATA menu. If you are in data entry mode, you must first exit this mode by pressing the ENTER key. Then use the GO TO menu to bring you to the first page of Form 1040, and move the cell pointer to line 8 of this form. Once the cell pointer is positioned on line 8 where interest income is to be entered, you can unprotect the cell by pressing the Alt-U keys. Now you can enter your interest income directly on line 8 without using Schedule B. Similarly, line 9a contains dividend income from Part II of Schedule B. If the amount of your dividends are $400 or less, then you may unprotect this cell and enter the total directly. 18 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel Line 14 should only be completed if you do not need Schedule D for other capital transactions. You will have to unprotect this cell before entering 40% of your capital gain distributions. Line 17b should contain the taxable portion of line 17a. Therefore if the amount entered on line 17b is larger than 17a, the ERR indicator will appear immediately above the amount on line 17b. The same check is performed on lines 20b, and 21b. A number of lines on the front sheet of Form 1040 require you to complete the associated schedules. They are: lines 8 and 9a-Schedule B (Interest And Dividend Income), line 12-Schedule C (Business Income Or Loss), line 13-Schedule D, line 18-Schedule E (Supplemental Income Schedule), line 19-Schedule F (Farm Income Or Loss), line 24-Form 3903 (Moving Expense), line 25-Form 2106 (Employee Business Expenses), and line 30-Schedule W (Deduction For A Married Couple When Both Work.) On the back sheet of Form 1040, line 34a contains your total deductions if you itemize. They are brought forward from Schedule A. Please note that if you itemize using Schedule A, and enter a value on line 34b, line 35 will display the ERR indicator because line 34b should be completed only if you don't itemize your deductions on Schedule A. Line 38 contains the tax which is computed from the appropriate tax rate schedule based on your filing status, and taxable income. As described earlier, the tax table is not used. Taxable incomes below $50,000 are rounded to the center of the tax bracket to yield the same result as if the tax table were used. Note that if you've completed Schedule G for income averaging, line 28 from Schedule G will be used on line 38 of Form 1040 if it is less than the amount computed from the tax rate schedules. In the Credits section, lines 41, and 42 are brought forward from Form 2441, and Schedule R respectively. In the Other Taxes section, line 50 comes from Schedule SE. 5.5.2. Form 2106 - Employee Business Expenses On this form, you have a choice of using the standard mileage rate (Part II, Section B), or actual expenses (Part II, Section C), in computing vehicle expenses on line 1. If you choose to use the standard mileage rate, you must replace the NA above line 11, with a 1. This tells FITT that you want Section B to serve as the basis for the vehicle expense calculations. If you wish to use Section C instead, no special action is required. 5.5.3. Form 2119 - Sale Or Exchange Of Principal Residence 19 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel There are several "switches" that may need to be set on this form. If your former residence was held six months or less, be sure to enter YES in the cell to the right of line 1a. This will remove the NA on this line which causes the gain to be treated as a short term capital gain instead of a long term capital gain. If you bought a new residence, be sure to enter the date on line 2a. This will activate the calculations in Part III - Gain To Be Postponed and Adjusted Basis of New Residence. The ERR indicator appears above line 9 of Part III as a reminder until a date is entered on line 2a. If you elect to take the once in a lifetime exclusion of the gain on the sale, be sure to check YES on line 3d. This will activate the calculations in Part II - Age 55 or Over One-Time Exclusion. The ERR indicator appears above line 7 of this part as a reminder not to complete this part unless you've checked YES on line 3d. 5.5.4. Form 2210 - Underpayment Of Estimated Tax By Individuals On line 14, if you use the annualized income installment method, complete the worksheet in the instructions, and enter the amount from line 26 in each column of line 14 (after unprotecting the four cells.) 5.5.5. Form 4684 - Casualties And Thefts If there was a gain from casualty or theft, lines 5 through 13 in Section A, and lines 5 through 10 in Section B should be skipped. If you have a gain, and mistakenly enter values on lines 5 or 6 of Section A or B, the ERR indicator will appear immediately below the cells in which you've entered non-zero values. If you are completing more than one Form 4684, the sum of the line 12 amounts are to be entered on line 13, and the sum of the line 4 amounts are to be entered on line 14. In this case, you should unprotect the cells for lines 13 & 14, and enter the totals directly. 5.5.6. Schedule A - Itemized Deductions If you are filing Schedule A, you need to activate this Schedule by replacing the NA above line 1, with a 1. This step is required because some taxpayers may be required to file Schedule A, even though they have no deductions to report. This "switch" is the only way FITT can be sure that the Schedule A calculations should or should not be performed. Schedule A uses the optional state sales tax tables. Before entering data on this schedule, be sure that you've installed the proper table for your state as described in section 4.5. The 20 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel tables are based on all available income. FITT calculates total available income as the sum of adjusted gross income (Form 1040, line 33), nontaxable pensions and annuities (Form 1040, line 17a minus 17b), nontaxable unemployment compensation (Form 1040, line 20a minus 20b), nontaxable social security benefits (Form 1040, line 21a minus 21b), working married couple deduction (Form 1040, line 30), dividend exclusion (Form 1040, line 9b), nontaxable capital gain distributions (Form 1040, line 14 divided by 0.4 & multiplied by 0.6), nontaxable distributions (Schedule B, line 7), and nontaxable capital gain (Schedule D, line 21 minus line 22). If you have any other nontaxable income not included in the above amounts, a provision has been made for you to include it as well. Before entering Schedule A, you should first leave the menu system via the QUIT option on the main menu, press the F5 function key (Lotus 1-2-3 GO TO command), and enter NONTAXABLE- INC~ (~signifies the enter key.) This will position the cell pointer at an unprotected cell which is outside of Schedule A. Enter the amount of any other non- taxable income not already included in the calculation. FITT will take care of adding this amount to the rest of your total available income before looking up the sales tax deduction in the table. After entering any other non-taxable income, look at line 8a after the model has been recalculated. If you kept records that show you paid more state sales tax than the tables list, you may use the larger amount. If this is the case, unprotect the cell, and enter the amount from your records. This is why it's important for you to have completed the first page of Form 1040, Schedules B, D, and W if they apply. If your total available income has not been accurately calculated at this point, you won't be getting the proper value from the state tax table for comparison. A number of FITT84 users asked about how to handle local city tax. It turns out that there are a number of situations which vary from state to state in which you may need to add an additional amount to that listed in the State Sales Tax Table. A cell immediately to the right of line 8b labeled Local tax has been added. Any number entered here will be included in the total taxes calculated on line 10. The amount on line 26 gets brought forward to line 34a of Form 1040. If the amount on this line is less than zero, the alternate calculation specified by the IRS is performed, and the result entered on line 35 of Form 1040. 5.5.7. Schedule B - Interest And Dividend Income 21 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel There is nothing unusual about filling out this form. Space has been provided for you to enter the descriptive information regarding the names of payers. Line 3 of Part I is carried forward to line 8 of Form 1040, and line 9 of Part II is carried forward to line 9a of Form 1040. Also, line 6 containing capital gain distributions is brought over to line 13 of Schedule D. 5.5.8. Schedule D - Capital Gains And Losses Columns d (Gross sales price) and e (Cost or other basis) are used to compute the loss (column f) or gain (column g) for each item of property described on line 1 of Part I and line 9 of Part II. Columns a, b, and c are not used in the calculations, but contain descriptive information only. When completing lines 5, 6, 12, & 15, be sure that you enter a loss as a negative number in the loss column (column f). If it is a gain, it should be entered as a positive number in the gain column (column g). A check is made to insure that any values entered in the loss column are negative. Line 13 in Part II contains the capital gain distributions reported on line 6 of Schedule B. If you did not use Schedule B, and have capital gain distributions to report, enter them directly on line 13 of Schedule D after unprotecting that cell. 5.5.9. Schedule E - Supplemental Income Schedule Be sure that any losses entered in the loss column (column E) of the Partnerships and the Estates sections of Part II, are entered as negative numbers. Also note that depreciation expense on line 19 is brought over from the depreciation worksheet in Part V. This worksheet applies only to property placed in service before 1981. If you have property placed in service in 1981 or later, you will have to complete Form 4562 (not included within FITT) for all property, and enter the results directly on line 19 after unprotecting the cells. 5.5.10. Schedule G - Income Averaging In order to "activate" Schedule G, you have to enter a 1 in place of the NA in the upper right corner of this schedule. If you use the GO TO menu to go to Schedule G, you will see that this specific cell location is clearly marked on the top of the form. If you do not change this cell, the amount on line 28 of Schedule G will not be checked against the tax figured on the line 38 of Form 1040. Removing the NA from this cell will cause the tax computed from the tax rate schedules to be compared with the tax 22 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel on line 28 of Schedule G. The lowest of the two will then be chosen. 5.5.11. Schedule R - Credit For The Elderly And Disabled Be sure that you check one, and only one line in lines 1 through 9. The line you check determines how the calculations are performed. If you check more than one line, the results will be incorrect. If you forget to check one of these lines, the ERR indicator will appear on line 10. 5.5.12. Schedule SE - Comp Of Soc Secur Self-Emp Tax There are three "switches" at the top of this schedule. You must enter a 1 immediately to the right of the cell labeled SCH SE---> to activate Schedule SE. In addition, if you elect to complete Part II - Optional Computation of Net Earnings From Self- Employment, you must indicate if you are using the Farm option, or Non-Farm option of calculating net earnings from self- employment. There are two "switches" appropriately labeled at the top of the form for this purpose. If you are not using Part II, then leave the FARM OPT, and NON-FRAM OPT switches set to a value of NA. 5.5.13. Schedule W - Deduction For A Married Couple When completing line 1, the wages reported in the columns for you and your spouse should add up to the total wages, salaries, tips, etc. reported on Form 1040, line 7. If they do not, the ERR indicator will be displayed. The net profit or (loss) from self-employment entered on line 2 should equal line 32 of Schedule C, plus line 38 of Schedule F. If it does not, the ERR indicator will be displayed. Any adjustments reported on line 4, should equal the amount reported on Form 1040, lines 25, 26, and 27. If the amount calculated for line 5 in column a or b is zero or less, then no deduction will be carried forward to Form 1040. 5.6. Reinitializing Specific Forms and Schedules FITT is distributed with zero values in the input cells on all of the forms and schedules. You may find yourself in a position where it would be desirable to reinitialize one or more of the schedules with zeros, while retaining the values you've entered into the rest of FITT. This can be done quite easily by combining specific schedules from the original FITT worksheet into your working copy, replacing the schedule you wish to initialize. This is done 23 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel using the REINIT option on the main menu. This operation requires that the original FITTyy.WKS file on the distribution disk be present in the default directory of 1-2-3. If the default directory is drive A or B, simply place the original disk in that drive before initiating the REINIT selection on the main menu. If the default directory is on a fixed disk (drive C or D), then make sure that a copy of FITTyy.WKS exists in that directory. Your other option is to temporarily change the default directory from your fixed disk to one of the floppy diskette drives (eg. /FDB:\). 24 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 6. DISCLAIMER The author makes no representations or warranties with respect to the contents hereof and specifically disclaims any implied warranties of merchantibility of fitness for any particular purpose. Further, the author reserves the right to revise this publication and to make changes from time to time in the content hereof without obligation of the author to notify any person or organization of such revision or changes. 25 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel A. Form 1040 - U.S. Individual Income Tax Return-Front Sheet ======================================================================== 1040 U.S. INDIVIDUAL INCOME TAX RETURN 1986 ------------------------------------------------------------------------ [Enter your first name & initial] [Your social security #] [Present home address (number & street)] [Spouse's soc. secur. #] [City, town or post office, State, and ZIP code] ------------------------------------------------------------------------ FILING 1 Single STATUS 2 Married filing joint return (even if only one had income) 3 Married filing separate return. Enter spouse's SSN above. 4 Head of household (with qualifying person). 5 Qualifying widow(er) with dependent child. ENTER STATUS (1,2,3,4 or 5)--> 2 . ------------------------------------------------------------------------ EXEMP- 6a Enter 0 or 1 for: Yourself 0 . TIONS 65 or over 0 . Blind 0 . b Spouse 0 . 65 or over 0 . Blind 0 . c Enter number of dependent children who lived with you 0 . d Enter number of dependent children who did not live with you 0 . e Enter # of other dependents 0 . f Total number of exemptions claimed . . . . . . 6f 0 ------------------------------------------------------------------------ INCOME 7 Wages, salaries, tips, etc. . . . . . . . . . . 7 0.00 8 Interest income (from Schedule B) . . . . . . . 8 0.00 9a Dividends (from Schedule B) . . . .9a 0.00 9b Exclusion . . . . . . . . . . . . .9b 0.00 9c Subtract line 9b from line 9a . . . . . . . . . 9c 0.00 10 Refunds of State and local income taxes . . . .10 0.00 11 Alimony received . . . . . . . . . . . . . . .11 0.00 12 Business income or (loss) (Schedule C) . . . .12 0.00 13 Capital gain or (loss) (Schedule D) . . . . . .13 0.00 14 40% of capital gain distributions . . . . . . .14 0.00 15 Other gains or (losses) (Form 4797) . . . . . .15 0.00 16 Fully taxable pensions, IRA dist., etc. . . . .16 0.00 17a Other pensions & annunities . . . 17a 0.00 . b Taxable amount, if any . . . . . . . . . . . .17b 0.00 18 Rents, royalties, partnerships, etc. (Sched E) 18 0.00 19 Farm income or (loss) (Schedule F) . . . . . .19 0.00 20a Unemployment comp. Total received 20a 0.00 . b Taxable amount, if any . . . . . . . . . . . .20b 0.00 21a Social security benefits . . . . 21a 0.00 . b Taxable amount, if any . . . . . . . . . . . .21b 0.00 22 Other income (state nature & source) _________ ______________________________________________ 22 0.00 23 Add lines 7 through 22. --------- TOTAL INCOME 23 0.00 ------------------------------------------------------------------------ 26 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ADJUST-24 Moving expense (Form 3903/3903F). 24 0.00 MENTS 25 Employee business exp (Form 2106) 25 0.00 TO 26 IRA deduction . . . . . . . . . . 26 0.00 INCOME 27 Keogh retirement plan deduction . 27 0.00 28 Penalty on erly withdrl of savngs 28 0.00 29 Alimony paid . . . . . . . . . . 29 0.00 30 Wrkng married couple ded (Sch W). 30 0.00 31 Add lines 24 through 30. ----TOTAL ADJUSTMNTS: 31 0.00 ------------------------------------------------------------------------ ADJUSTED GROSS 32 ADJUSTED GROSS INCOME . . . . . . . . . . . . .32 0.00 INCOME (Subtract line 31 from line 23.) ======================================================================== 27 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel B. Form 1040 - U.S. Individual Income Tax Return-Back Sheet ======================================================================== 1040 U.S. INDIVIDUAL INCOME TAX RETURN Page 2 ------------------------------------------------------------------------ TAX 33 Amount from line 32 (adjusted gross income) . .33 0.00 COMPU- 34a If you itemize, line 26 from Schedule A . . . .34a NA TATION b If you do not itemize but you made charit contrib, enter cash cont. .34b 0.00 c Enter your noncash contributions .34c 0.00 d Add lines 34b and 34c . . . . . . . . . . . . .34d 0.00 35 Subtract line 34a or 34d from line 33 . . . . .35 ERR 36 Multiply $1,080 by the # of exemptions . . . .36 0.00 37 Taxable income. Subtract line 36 from 35 . . .37 ERR 38 TAX from Tax Table or Rate Schedules . . . . .38 ERR 39 Additional taxes (Form 4970, 4972, or 5544) . .39 0.00 40 Add lines 38 and 39: TOTAL TAXES . . . . . . .40 ERR ------------------------------------------------------------------------ CREDITS41 Credit-child care exp (Form 2441).41 0.00 42 Credit-elderly/disabled (Sched R).42 0.00 43 Partial cred.-political contri . .43 0.00 44 Add lines 41 - 43. TOTAL PERSONAL CREDITS . .44 0.00 45 Subtract line 44 from 40 (not less than 0) . .45 ERR 46 Foreign tax credit (Form 1116) . .46 0.00 47 General business credit . . . . .47 0.00 48 Add lines 46 - 47: TOTAL BUS. & OTHER CREDITS .48 0.00 49 Subtract line 48 from 45 (not less than 0) . .49 ERR ------------------------------------------------------------------------ OTHER 50 Self-employment tax (Schedule SE) . . . . . . .50 0.00 TAXES 51 Alternative minimum tax (Form 6251) . . . . . .51 0.00 52 Tax from recap. of invest. cred. (Frm 4255) . .52 0.00 53 Social sec. tax on tip income (Form 4137) . . .53 0.00 54 Tax on an IRA (Form 5329) . . . . . . . . . . .54 0.00 55 Add lines 49 through 54: TOTAL TAX . . . . . .55 ERR ------------------------------------------------------------------------ PAY- 56 Federal income tax withheld . . . 56 0.00 MENTS 57 1986 estimated tax payments . . . 57 0.00 58 Earned income credit . . . . . . 58 0.00 59 Amount paid with Form 4868 . . . 59 0.00 60 Excess social security & RRTA tax 60 0.00 61 Credit for Federal gasoline tax . 61 0.00 62 Regulated Investment Co. credit . 62 0.00 63 Add lines 56 through 62: TOTAL PAYMENTS . . .63 0.00 ------------------------------------------------------------------------ REFUND 64 If line 63 is larger than 55, OVERPAID . . . .64 ERR OR 65 Amount of line 64 to be REFUNDED TO YOU . . . .65 0.00 AMOUNT 66 Amt. applied to 1987 estim. tax . 66 ERR DUE 67 If line 55 is larger than 63, AMOUNT OWED . . .67 ERR Penalty from Form 2210 ERR ======================================================================== 28 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel C. Form 2106 - Employee Business Expenses ======================================================================== FORM 2106 EMPLOYEE BUSINESS EXPENSES 1986 ------------------------------------------------------------------------ Your name SSN Occupation in which exp were incurred _____________________ __________ _______________________________________ ------------------------------------------------------------------------ PART I Employee Bus Exp Deductible in Figuring Adjusted Gross Income ------------------------------------------------------------------------ 1 Vehicle expenses from Part II, lines 15 or 22 . . . . . 1 0.00 2 Parking fees, tolls, & certain other expenses . . . . . 2 0.00 3 Local transportation including train, cabs, bus, etc. . 3 0.00 4 Travel expenses while away from home overnight . . . . 4 0.00 5 Employees who are not outside salespersons: Enter your expenses, not included on lines 1 through 4, for entertainment, gifts, and other business expenses up to the amount you were reimbursed by your employer . . . . 5 0.00 6 Outside salesperson's expenses: Enter your total expenses for entertainment, gifts, and other business expenses not included on lines 1 through 4 . . . . . . 6 0.00 7 Add lines 1 through 6 . . . . . . . . . . . . . . . . . 7 0.00 8 Enter reimbursements from employer on this line if the reimbursements were not included on Form W-2 . . . . . 8 0.00 9 If line 7 is more than line 8, enter difference here and on Form 1040, line 25 . . . . . . . . . . . . . . . 9 NA 10 If line 8 is more than line 7, enter difference here and include it on Form 1040, line 7 . . . . . . . . . .10 NA ------------------------------------------------------------------------ PART II Vehicle Exp. (Use actual exp. or the standard mileage rate.) ------------------------------------------------------------------------ Section A. - General Information Vehicle 1 Vehicle 2 ------------------------------------------------------------------------ 1 Date vehicle was placed in service . . 1 0 0 2 Total mileage used during 1986 . . . . 2 0 0 3 Miles included on line 2 for business. 3 0 0 4 % of business use (line 3 / line 2) . 4 0.00% 0.00% 5 Avrg daily round trip commuting dist . 5 0 0 6 Miles included on line 2 for commuting 6 0 0 7 Other personal mileage (line 2-(3+6)). 7 0 0 8 Do you have another vehicle YES NO NOT APPL available for personal use? . ___ ___ 9 If your employer provided you with a vehicle, is personal use off duty hours permitted? ___ ___ ___ 10 Do you have evidence to support your deduction? . . . ___ ___ If yes, is evidence written? ___ ___ ------------------------------------------------------------------------ Section B. - Standard Mileage Rate (Do not use unless you own vehicle) If you are using the standard mileage rate, enter a 1 here -> NA ------------------------------------------------------------------------ 11 Enter the smaller of Part II, line 3 or 15,000 miles .11 0 12 Subtract line 11 from Part II, line 3 . . . . . . . . .12 0 13 Multiply line 11 by 21 cents . . . . . . . . . . . . .13 0.00 14 Multiply line 12 by 11 cents . . . . . . . . . . . . .14 0.00 15 Add lines 13 and 14. Enter here & on Part I, line 1 .15 0.00 29 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ Section C. - Actual Expenses Vehicle 1 Vehicle 2 ------------------------------------------------------------------------ 16 Gas, oil, repairs, insurance, etc. . .16 0.00 0.00 17 Vehicle rentals . . . . . . . . . . .17 0.00 0.00 18 Value of employer-provided vehicle (applies only if incl on Form W-2) . .18 0.00 0.00 19 Add lines 16 through 18 . . . . . . .19 0.00 0.00 20 Mult line 19 by % on Part II, line 4 .20 0.00 0.00 21 Depreciation from Sect D, column (f) .21 0.00 0.00 22 Add 20+21. Enter here & Pt I, ln 1. .22 0.00 0.00 ------------------------------------------------------------------------ Section D. - Depreciation of Vehicles (Depreciation can only be claimed for a vehicle you own. --------------------------- Vehicle 1 ---------------------------------- Basis for Deprecia. Deprecia. Section 179 Total Cost deprecia. Method deduction expense col (d)+(e) (a) (b) (c) (d) (e) (f) 0.00 0.00 0.00 0.00 0.00 0.00 --------------------------- Vehicle 2 ---------------------------------- Basis for Deprecia. Deprecia. Section 179 Total Cost deprecia. Method deduction expense col (d)+(e) (a) (b) (c) (d) (e) (f) 0.00 0.00 0.00 0.00 0.00 0.00 ======================================================================== 30 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel D. Form 2119 - Sale Or Exchange Of Principal Residence ======================================================================== FORM 2119 SALE OR EXCHANGE OF PRINCIPAL RESIDENCE 1986 ------------------------------------------------------------------------ Name(s) as shown on Form 1040 Your social security number ------------------------------------------------------------------------ 1 a Date former residence sold ___________Short term gain-> NA ------------------------------------------------------------------------ b Enter the face amount of any mortgage on which you will receive periodic payments from this sale . . . 1b 0 ------------------------------------------------------------------------ 2 a If you bought a new res, enter date you occupied it; otherwise enter @NA NA YES NO b Are any rooms in either residence rented out or used for business for which a deduction is allowed? ___ ___ ------------------------------------------------------------------------ 3 a Were you 55 or over on date of sale? ___ ___ ------------------------------------------------------------------------ b Was your spouse 55 or over on date of ___ ___ sale? If you answered "No" to 3a and 3b, do not complete 3c through 3f and Part II. ------------------------------------------------------------------------ c Did the person who answered "Yes" to 3a or 3b own & use the property sold as his or her principal residence for at least 3 yrs of the 5-yr period before sale? ___ ___ ------------------------------------------------------------------------ d If you answered "Yes" to 3c, do you elect to take the once in a lifetime exclusion of the gain on the sale? NA ___ ------------------------------------------------------------------------ e At time of sale, was the residence owned by: you, ___ your spouse, ___ both of you? ___ ------------------------------------------------------------------------ f Social security number of spouse, at time of sale, if different from number on Form 1040 _________________ ------------------------------------------------------------------------ Part I Computation of Gain ------------------------------------------------------------------------ 4 Selling price of residence less expense of sale . . . . 4 0 5 Basis of residence sold . . . . . . . . . . . . . . . . 5 0 6 Gain on sale (subtract line 5 from line 4). If zero or less, enter zero and do not complete the rest of form. Enter the gain from this line on Schedule D, line 3 or 10, unless you bought another principal residence or checked "Yes" to 3d. Then continue with this form . . 6 0 If you haven't replaced your residence, do you plan to do so within the replacement period? YES ___ NO ___ 31 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ Part II Age 55 or Over One-Time Exclusion ------------------------------------------------------------------------ Complete only if you checked "Yes" to 3(d)-> ERR ------------------------------------------------------------------------ 7 Enter the smaller of line 6 or $125,000 ($62,500, if married filing separate return) . . . . . . . . . . . . 7 NA 8 Gain (subtract line 7 from line 6). If zero, do not complete rest of form. Enter the gain from this line on Schedule D, line 10, unless you bought another principal residence. Then continue with this form . . 8 NA ------------------------------------------------------------------------ Part III Gain To Be Postponed and Adjusted Basis of New Residence ------------------------------------------------------------------------ Complete only if you bought another principal residence. ERR ------------------------------------------------------------------------ 9 Fixing-up expenses . . . . . . . . . . . . . . . . . . 9 0 10 Adjusted sales price (subtract line 9 from line 4) . .10 NA 11 Cost of new residence . . . . . . . . . . . . . . . . .11 0 12 Gain taxable this year (subtract line 11 plus line 7 (if applicable) from line 10). If result is zero or less, enter zero. Do not enter more than line 6 or line 8 (if applicable). Enter the gain from this line on Schedule D, line 3 or 10 . . . . . . . . . . . . . .12 NA 13 Gain to be postponed (subtract line 12 from line 6. However, if Part II applies, subtract line 12 from line 8) . . . . . . . . . . . . . . . . . . . . . . . .13 NA 14 Adj basis of new residence (subtract line 13 from 11) .14 NA ======================================================================== 32 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel E. Form 2210 - Underpay Of Est Tax By Individuals-Front Sht ======================================================================== FORM 2210 UNDERPAYMENT OF ESTIMATED TAX BY INDIVIDUALS 1986 ------------------------------------------------------------------------ Part I Figuring Your Underpayment ------------------------------------------------------------------------ 1 1986 tax after credits (from Form 1040, line 49) . . . . 1 ERR 2 Other taxes (see instructions) . . . . . . . . . . . . . 2 0.00 3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . 3 ERR 4 Earned income credit . . . . . . . . . . . . 4 0.00 5 Credit for fed tax on gas & special fuels . 5 0.00 6 Credit for overpaid windfall profit tax . . 6 0.00 7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . . 7 0.00 8 Subtract line 7 from line 3 . . . . . . . . . . . . . . 8 ERR 9 Multiply line 8 by 80% (.80) . . . . . . . . 9 ERR 10 Withholding taxes from 1986 Form 1040, lines 56 and 60 .10 0.00 11 Subtract line 10 from line 8. If the result is less than $500, do not complete the rest of form . . . . . .11 ERR 12 Enter your 1985 tax (see instructions) . . . . . . . . .12 0.00 13 Enter the smaller of line 9 or line 12 . . . . . . . . .13 ERR ----------- Payment Due Dates ----------- (a) (b) (c) (d) 15-Apr-86 15-Jun-86 15-Sep-86 15-Jan-87 ------------------------------------------- 14 Divide line 13 by four & enter in each col . 14 ERR ERR ERR ERR 15 Estimated tax paid and tax withheld. (For col (a) only, enter the amt frm line 15 on 19) 15 0.00 0.00 0.00 0.00 16 Enter amt, if any, from line 22 of prev col . 16 -------- ERR ERR ERR 17 Add lines 15 and 16 . 17 -------- ERR ERR ERR 18 Add amts on lines 20 & 21 of the prev column 18 -------- ERR ERR ERR 19 Enter ln 17-ln 18. If 0 or less, ent 0. (For col (a), enter ln 15) 19 0.00 ERR ERR ERR 20 Remain underpay from prev period. If line 19 is 0, ent ln 18-17 20 -------- ERR ERR ERR 21 UNDERPAYMENT. If line 14 is >=line 19, enter ln 14-19. Then go to ln 15 of next col. Else go to line 22 . . 21 ERR ERR ERR ERR 22 OVERPAYMENT. If ln 19 is > ln 14, enter line 19-14. Then go to ln 15 of next column . . 22 ERR ERR ERR ERR ======================================================================== 33 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel F. Form 2210 - Underpay Of Est Tax By Individuals-Back Sheet ======================================================================== FORM 2210 UNDERPAYMENT OF ESTIMATED TAX BY INDIVIDUALS 1986 ------------------------------------------------------------------------ Part II Figuring the Penalty ------------------------------------------------------------------------ ----------- Payment Due Dates ----------- (a) (b) (c) (d) 15-Apr-86 15-Jun-86 15-Sep-86 15-Jan-87 ------------------------------------------- 23 Underpayment from line 21, page 1 . . . . . . 23 ERR ERR ERR ERR ------------------------------------------------------------------------ Rate Period 1 - 10% (April 15, 1986 - June 30, 1986) ------------------------------------------------------------------------ 24a Computation starting date for this period 24a 15-Apr-86 15-Jun-86 --------- -------- b # of days FROM the date on ln 24a TO the date ln 23 was paid or 6/30/86, whichever is earlier. If 6/30 is earlier, Days Days ent 76 & 15, respec. .24b 0 0 --------- -------- c (# of days on ln 24b)/ 365 * 10% * underpaymnt on line 23 . . . . . .24c ERR ERR --------- -------- ------------------------------------------------------------------------ Rate Period 2 - 9% (July 1, 1986 - April 15, 1987) ------------------------------------------------------------------------ 25a Computation starting date for this period .25a 30-Jun-86 30-Jun-86 15-Sep-86 15-Jan-87 b # of days FROM the date on ln 25a TO the date ln 23 was paid or 4/15/87, whichever is earlier. If 4/15 is earlier, enter 289, 289, 212, and 90 in col (a)-(d), Days Days Days Days respectively . . . . .25b 0 0 0 0 c (# of days on ln 25b)/ 365 * 9% * underpaymnt on line 23 . . . . . .25c ERR ERR ERR ERR ------------------------------------------------------------------------ 26 Penalty (add all amounts on lines 24c & 25c in all cols) Check the box below line 67 on Form 1040 & show this amt in the space provided. If you owe tax, add the penalty to your tax & show the total on line 67. If you are due a refund, subtract the penalty from the overpayment on line 64 . . . . . . . . . . . . . . . . . . . . . . . . 26 ERR ======================================================================== 34 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel G. Form 2441 - Credit For Child And Dependent Care Expenses ======================================================================== FORM 2441 CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES 1986 ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] ------------------------------------------------------------------------ 1 Enter the number of qualifying persons who were cared for in 1986 . . . . . . . . . . . . . . . . . . . . . 1 0 2 Enter the amount of qualified expenses you incurred and actually paid in 1986, but do not write more than $2,400 ($4,800 if you paid for the care of two or more qualifying persons) . . . . . . . . . . . . . . . . . 2 0.00 3a You must enter your earned income on line 3a. See the . instruc for line 3 for the definition of earned income 3a 0.00 b If you are married, filing a joint return for 1986, you must enter your spouse's earned income on line 3b . . 3b 0.00 c If you are married filing a joint return, compare the amounts on lines 3a and 3b, and enter the smaller of the two amounts on line 3c . . . . . . . . . . . . . . 3c 0.00 4 -If you were unmarried at the end of 1986, compare the amounts on lines 2 and 3a, and enter the smaller of the two amounts on line 4. -If you are married filing a joint return, compare the amounts on lines 2 and 3c, and enter the smaller of the two amounts on line 4. . . . . . . . . . . . . . . 4 0.00 5 Enter the percentage from the table below that applies to the adjusted gross income on Form 1040, line 33 . . 6 30% If line 33 is: % is: 0.00 30% 10,000.00 29% 12,000.00 28% 14,000.00 27% 16,000.00 26% 18,000.00 25% 20,000.00 24% 22,000.00 23% 24,000.00 22% 26,000.00 21% 28,000.00 20% 6 Multiply the amount on line 4 by the percentage shown on line 5, and enter the result . . . . . . . . . . . . 6 0.00 7 Multiply any child and dependent care expenses for 1985 that you paid in 1986 by the percentage that applies to the adjusted gross income on your 1985 Form 1040, line 33, or Form 1040A, line 15. Enter the result . . 8 0.00 8 Add amounts on lines 6 and 7. Enter the total here and on Form 1040, line 41. This is the maximum amount of your credit for child and dependent care expenses . . . 8 0.00 ======================================================================== 35 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel H. Form 3903 - Moving Expense Adjustment ======================================================================== FORM 3903 MOVING EXPENSE ADJUSTMENT 1986 ------------------------------------------------------------------------ Name(s) as shown on Form 1040 [SSN] ------------------------------------------------------------------------ a Number of miles from old residence to new work place . a 0 b Number of miles from old residence to old work place . b 0 c Subtract line b from line a. Enter the result . . . . c 0 If line c is 35 or more miles, complete the rest of this form. ------------------------------------------------------------------------ 1 Transportation exp in moving hsehld gds & person. effects 0.00 2 Travel, meal, & lodging exp in moving from old to new res 0.00 3 Pre-move trvl, meal, & lodging exp in looking for new res after getting job 3 0.00 4 Temporary living exp in new location or area during any 30 days in a row after getting your job . . . . . . . . 4 0.00 5 Add lines 3 and 4 . . . . . . . . . . 5 0.00 6 Enter the smaller of line 5 or $1,500 ($750 if married, filing a separate return, and at the end of the tax year, you lived with your spouse who also started work during the tax year) . . . . . . . . 6 0.00 7 Expenses of (check one): a ____ selling or exchanging your old residence or b ____ if renting, settling an unexpired lease on your old residence . 7 0.00 8 Expenses of (check one): a ____ buying your new residence; or b ____ if renting, getting a lease on your new residence . . . . . 8 0.00 9 Add lines 6, 7, and 8 . . . . . . . . 9 0.00 10 Enter smaller of line 9 or $3,000 ($1,500 if married, filing a separate return, and at the end of the tax year, you lived with your spouse who also started work during the tax year) . . . . . . . . . . . . . . . . .10 0.00 11 Add lines 1, 2, and 10. This is your moving expense deduction. Enter here and on Form 1040, line 24. . . .11 NA ======================================================================== 36 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel I. Form 4684 - Casualties And Thefts-Front Sheet ======================================================================== FORM 4684 CASUALTIES AND THEFTS 1986 ------------------------------------------------------------------------ Name(s) as shown on tax return Identifying number ------------------------------------------------------------------------ Section A.-Personal Use Property ------------------------------------------------------------------------ 1 Description of Properties (Show kind, locatiion, and date purchased) Property A ____________________________________________________ Property B ____________________________________________________ Property C ____________________________________________________ Property D ____________________________________________________ Properties A B C D 2 Cost of each property . . 0 0 0 0 3 Insurance or other reimbursement you received or expect to receive . . 0 0 0 0 Note: If line 2 is more than line 3, skip line 4 4 Gain from casualty or theft. If line 3 is more than line 2, enter difference here, and skip line 5-13 0 0 0 0 5 Fair market value before casualty or theft . . . . 0 0 0 0 . . . . 6 Fair market value after casualty or theft . . . . 0 0 0 0 . . . . 7 Subtract line 6 from 5 . 0 0 0 0 8 Enter smaller of line 2 or line 7 . . . . . . . 0 0 0 0 9 Subtract line 3 from 8 . 0 0 0 0 10 Casualty or theft loss. Add amounts from line 9 for all columns . . . . . . . . . . . . . . . . . . . . . . . .10 0 11 Amount from line 10 or $100, whichever is smaller . . .11 0 12 Subtract line 11 from line 10 . . . . . . . . . . . . .12 0 13 Add the line 12 amounts from all Forms 4684, Section A .13 0 14 Add the line 4 amounts from all Forms 4684, Section A .14 0 15 If line 14 is more than 13, enter difference here and on Schedule D, and do not complete the rest of form. Otherwise, enter zero and complete lines 16 through 18. If line 14 equals line 13, don't complete rest of form .15 0 16 If line 13 is more than line 14, enter difference . . .16 0 17 Enter 10% of adjusted gross income (Form 1040, line 33).17 0 18 Subtract line 17 from line 16. If zero or less, enter zero. Enter on Schedule A (Form 1040), line 19. . . . .18 0 ======================================================================== 37 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel J. Form 4684 - Casualties And Thefts-Back Sheet ======================================================================== FORM 4684 CASUALTIES AND THEFTS 1986 ------------------------------------------------------------------------ Section B.-Business and Income-Producing Property ------------------------------------------------------------------------ Part I Casualty or Theft Gain or Loss-Use sep Part I for each theft. ------------------------------------------------------------------------ 1 Description of Properties (Show kind, locatiion, and date purchased) Property A ____________________________________________________ Property B ____________________________________________________ Property C ____________________________________________________ Property D ____________________________________________________ Properties A B C D 2 Cost of each property . 2 0 0 0 0 3 Insurance or other reimbursement you recvd or expect to receive . 3 0 0 0 0 Note: If line 2 is more than line 3, skip line 4 4 Gain from casualty or theft. If line 3 is more than line 2, enter diff here, & skip line 5-10. 4 0 0 0 0 5 Fair market value before casualty or theft . . . 5 0 0 0 0 . . . . 6 Fair market value after casualty or theft . . . 6 0 0 0 0 . . . . 7 Subtract line 6 from 5 7 0 0 0 0 8 Enter smaller of line 2 or line 7 . . . . . . 8 0 0 0 0 9 Subtract line 3 from 8 9 0 0 0 0 10 Casualty or theft loss. Add amounts from line 9 for all columns. Enter here and on line 11 or 16 . . . . . . .10 0 ------------------------------------------------------------------------ Part II Summary of Gains and Losses (From separate Parts I) ------------------------------------------------------------------------ (a) Identify casualty or theft ---- (b) Losses ---- (c) Gains (i) Trade/ (ii)Income- bus/rental/ producing roylty prop property ------------------------------------------------------------------------ Casualty or Theft of Property Held 6 Months or Less ------------------------------------------------------------------------ 11 _____________________________________ 0 0 0 ________________________________________ 0 0 0 12 Totals. Add amts on line 11 . . .12 0 0 0 13 Combine line 12, columns (b)(i) and (c). Enter the net gain or (loss) here and on Form 4797, Part II, line 13 .13 0 14 Enter the amount from line 12, column (b)(ii) here and on Schedule A (Form 1040), line 19 . . . . . . . . . . . .14 0 38 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ Casualty or Theft of Property Held More Than 6 Months ------------------------------------------------------------------------ 15 Casualty or theft gains - Form 4797, Pt III, line 31 . .15 0 16 _____________________________________ 0 0 0 ________________________________________ 0 0 0 17 Total losses. Add amounts on line 16, columns (b)(i) and (b)(ii) . .17 0 0 18 Total gains. Add lines 15 and 16, column (c) . . . . .18 0 19 Add amounts on line 17, columns (b)(i) and (b)(ii) . . .19 0 20 If the loss on line 19 is more than the gain on line 18: a Combine line 17, column (b)(i) and line 18. Enter the net gain or (loss) here and on Form 4797, Part II, line 13. . . . . . . . . . . . . . . . . . . . . . . 20a NA b Enter the amount from line 17, column (b)(ii) here and on Schedule A (Form 1040), line 19 . . . . . . . . . 20b NA 21 If the loss on line 19 is equal to or smaller than the gain on line 18, combine these lines and enter here and on Form 4797, Part I, line 2 . . . . . . . . . . . . . . 20c 0 ======================================================================== 39 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel K. Schedule A - Itemized Deductions ======================================================================== 1040 SCHEDULE A - ITEMIZED DEDUCTIONS 1986 ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] Enter a 1 here -------> NA ------------------------------------------------------------------------ MEDICAL 1 Prescrip. med., drugs, & insulin 1 0.00 AND 2a Doctors, dentists, nurses, hosp., DENTAL insurance premiums you paid for EXPENSE medical and dental care, etc. . . 2a 0.00 b Transportation and lodging . . . 2b 0.00 (Do not c Other (list-include hearing aids, include dentures, eyeglasses, etc.) expnses _________________________________ paid by _________________________________ 2c 0.00 others) 3 Add lines 1 through 2c. . . . . . 3 0.00 4 Multiply Adjusted Gross by 5% . . 4 0.00 5 Subtract line 4 from line 3. -TOT. MED. & DEN. 5 0.00 ------------------------------------------------------------------------ TAXES 6 State and local income taxes . . 6 0.00 YOU 7 Real estate taxes . . . . . . . . 7 0.00 PAID 8a Gen. sales tax (sales tax table). 8a 0.00 Local tax b Gen. sales tax on motor veh. . 8b 0.00 0.00 9 Othr txes (list-incl. pers. prop.) _________________________________ 9 0.00 10 Add lines 6 though 9. -------------TOTAL TAXES 10 0.00 ------------------------------------------------------------------------ INTER- 11a Home mortgage interest-banks . . 11a 0.00 EST b Home mortgage interest-individuals YOU (show person's name & address) PAID _________________________________ 11b 0.00 12 Credit card & chrge accnt inter .12 0.00 13 Other interest you paid (list) _________________________________ _________________________________ 13 0.00 14 Add lines 11a through 13. ------TOTAL INTEREST 0.00 ------------------------------------------------------------------------ CON- 15a Cash contribu. less than $3,000. 15a 0.00 TRIBU- b Cash contri. $3,000 or more (list) TIONS _________________________________ YOU _________________________________ 15b 0.00 MADE 16 Other than cash . . . . . . . . . 16 0.00 17 Carryover from prior year . . . . 17 0.00 18 Add lines 15a through 17. -TOTAL CONTRIBUTIONS 18 0.00 ------------------------------------------------------------------------ LOSSES 19 Total casualty or theft loss(es) (Form 4684.) 19 0.00 ------------------------------------------------------------------------ MISC. 20 Union and professional dues . . .20 0.00 DEDUC- 21 Tax return preparation fee . . . .21 0.00 TIONS 22 Other (list type and amount) _________________________________ 22 0.00 23 Add lines 20 through 22. --TOTAL MISCELLANEOUS 23 0.00 ------------------------------------------------------------------------ SUM- 24 Add lines 5, 10, 14, 18, 19, and 23. . . . . .24 0.00 MARY OF 25 If filing status is 2 or 5, write $3,670 . . . ITEM- If filing status is 1 or 4, write $2,480 . . .25 3,670.00 IZED If filing status is 3, write $1,835 . . . . . . DEDUC- TIONS 26 Subtract line 25 from line 24.-TOTAL DEDUCT . .26 NA ======================================================================== 40 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel L. Schedule B - Interest And Dividend Income ======================================================================== 1040 SCHEDULE B - INTEREST AND DIVIDEND INCOME 1986 ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] ------------------------------------------------------------------------ PART I If you received more than $400 in interest income, you must INTER- complete Part I and list ALL interest received. If you received EST interest as a nominee for another, see page 22. INCOME ----------------------------------------------------------------- Interest income Amount ----------------------------------------------------------------- 1 Interest income from seller-financed mortgages. (Show name of payer.) . . . . . . . . . . . . . 1 0.00 _______________________________________________ 2 Other interest income (list name of payer) _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 3 Add the amounts on lines 1 and 2 . . . . . . . . 3 0.00 ----------------------------------------------------------------------- PART If you received more than $400 in gross dividends and/or other II distributions on stock, complete Part II. If you received, as a DIVI- nominee, dividends that actually belong to another person, see DEND page 23. INCOME ----------------------------------------------------------------- Dividend income Amount ----------------------------------------------------------------- 4 Dividend income (list name of payer-include on this line capital gain dist., nontaxable dist., etc.) _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 _______________________________________________ 0.00 5 Add the amounts on line 4 . . . . . . . . . . . 5 0.00 6 Capital gain distributions . . . . 6 0.00 7 Non-taxable distributions . . . . 7 0.00 8 Add the amounts on lines 6, and 7 . . . . . . . 8 0.00 9 Subtract line 8 from line 5 . . . . . . . . . . 9 0.00 41 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ----------------------------------------------------------------------- PART If you received more than $400 of interest or III dividends, OR if you had a foreign account, you FOR- must answer both questions in Part III. YES NO EIGN ----------------------------------------------------------------- AC- 10 At any time during the tax year, did you have any COUNTS authority over a financial account in a foreign AND country (such as a bank or securities account, or FOR- other account)? If "Yes," write the country name. EIGN _______________________________________________ ____ ____ TRUSTS 11 Were you the grantor of, or transferor to, a foreign trust which existed during the current tax year, whether or not you have any beneficial interest in it? ____ ____ ======================================================================== 42 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel M. Schedule C - Profit Or (Loss) From Business ======================================================================== 1040 SCHEDULE C - PROFIT OR (LOSS) FROM BUSINESS 1986 ------------------------------------------------------------------------ Name of proprietor A Principal business or profession B Principal business code _____________________________________________ __________ C Business name and address D Employer ID number _____________________________________________ _____________ _____________________________________________ E Method(s) used to value closing inventory: (1) Cost ___ (2) Lower of cost or market ___ (3) Other (attach explanation) ___ F Accounting method: (1) Cash ___ (2) Accrual ___ (3) Other (specify) ___ YES NO G Was there any change in determining quantities, costs, or valuations between opening & closing inventory? ________________________ H Did you ded exp for an off in your home? ________________________ I If this sch includes a loss, cred, ded, income, or other tax ben relating to a tax shelter req to be registered, check here. If you checked, you MUST attach Form 8271 ___ ------------------------------------------------------------------------ PART I - Income ------------------------------------------------------------------------ 1a Gross receipts or sales . . . . . . . . .1a 0.00 b Less: Returns and allowances . . . . . .1b 0.00 c Subtract line 1b from line 1a & enter balance here . . 1c 0.00 2 Cost of gds sold and/or operations (Part III, line 8). 2 0.00 3 Subtract line 2 from line 1c & enter the gross profit. 3 0.00 4a Windfall Profit Tax Credit or Refund received in 1986. 4a 0.00 b Other income . . . . . . . . . . . . . . . . . . . . . 4b 0.00 5 Add lines 3, 4a, and 4b. This is the gross income . . 5 0.00 ------------------------------------------------------------------------ PART II - Deductions ------------------------------------------------------------------------ 6 Advertising . . . . . . . . . . . 6 0 22 Rent on prop 0.00 7 Bad debts from sales or services. 7 0 23 Repairs . . . 0.00 8 Bank service charges . . . . . . 8 0 24 Supplies . . 0.00 9 Car & truck expenses . . . . . . 9 0 25 Taxes (don't incl Wndfl 10 Commisions . . . . . . . . . . .10 0 Profit tax) 0.00 11 Depletion . . . . . . . . . . . .11 0 26 Trav & ent . 0.00 12 Depreciation & section 179 ded. .12 0 27 Util & tele . 0.00 13 Dues & Publications . . . . . . .13 0 28 a Wages . . . 0.00 14 Employee benefit programs . . . .14 0 b Jobs credit 0.00 15 Freight (not incl in Part III). .15 0 c 28b - 28a . 0.00 16 Insurance . . . . . . . . . . . .16 0 29 Windfall Profit Tax 17 Interest: withhld in 86 0.00 a Mortgage (pd to fin. inst.) . 17a 0 30 Other expenses (specify) b Other . . . . . . . . . . . . 17b 0 a_____________ 0.00 18 Laundry and cleaning . . . . . .18 0 b_____________ 0.00 19 Legal and professional services .19 0 c_____________ 0.00 20 Office expense . . . . . . . . . 20 0 d_____________ 0.00 21 Pension and profit-sharing plans 21 0 e_____________ 0.00 ------------------------------------------------------------------------ 31 Add amts in lines 6 - 30e. These are the total deduct .31 0.00 43 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 32 Net profit or (loss) (line 5 - line 31) . . . . . . . .32 0.00 33 If loss, do you have amounts for which you are not "at risk" in this business? . . . . . . . . . . . . .33 ___________ ------------------------------------------------------------------------ PART III -- Cost of Goods Sold and/or Operations ------------------------------------------------------------------------ 1 Inventory at beginning of year . . . . . . . . . . . . 1 0.00 2 Purchases less cost of items withdrawn for personal use 2 0.00 3 Cost of labor (do not include salary paid to yourself). 3 0.00 4 Materials and supplies . . . . . . . . . . . . . . . . 4 0.00 5 Other costs . . . . . . . . . . . . . . . . . . . . . . 5 0.00 6 Add lines 1 through 5 . . . . . . . . . . . . . . . . . 6 0.00 7 Less: Inventory at end of year . . . . . . . . . . . . 7 0.00 8 Cost of goods sold and/or operations (line 6 - line 7). 8 0.00 ======================================================================== 44 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel N. Schedule D - Capital Gains And Losses-Front Sheet ======================================================================== 1040 SCHEDULE D - CAPITAL GAINS AND LOSSES 1986 ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] [Your SSN] ------------------------------------------------------------------------ 1 Report here the total sales of stocks, bonds, etc., reported for 1986 by your broker to you on Form(s) 1099-B or an equivalent substitute statement(s) . . . . . . . . . . . .1 0.00 ------------------------------------------------------------------------ PART I Short-term Capital Gains & Losses-Assets Held Six Months or Less ------------------------------------------------------------------------ A B C D E F G Date Date Cost or Descrip. acquir. Sold Sales other of prop. MM/DD/YY MM/DD/YY price basis LOSS GAIN ------------------------------------------------------------------------ 2a Form 1099-B Transactions (Sales of Stocks, Bonds, etc.): ------------------------------------------------------------------------ _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 2b Total (add column (d)) 0.00 2c Other Transactions: _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 ------------------------------------------------------------------------ 3 Short-term gain from sale-principal residence 3 0 4 Short-term gain from installment sales . . . . 4 0 5 Net short-term gain or (loss) from partnershps 5 0 0 6 Short-term cap. loss carryover from after 1969 6 0 7 Add 2a and 2c and lines 3 - 6 in col (f) & (g) 7 0.00 0.00 8 Net short-term gain or (loss), col (f) & (g) of line 7. . 8 0 ------------------------------------------------------------------------ PART II Long-term Capital Gains & Losses-Assets Held More Than Six Mnths ------------------------------------------------------------------------ A B C D E F G Date Date Gross Cost or Descrip. acquir. Sold sales other of prop. MM/DD/YY MM/DD/YY price basis LOSS GAIN ------------------------------------------------------------------------ 9a Form 1099-B Transactions (Sales of Stocks, Bonds, etc.): ------------------------------------------------------------------------ _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 9b Total (add column (d)) 0.00 45 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 9c Other Transactions: _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 _____________________________ 0.00 0.00 0.00 0.00 ------------------------------------------------------------------------ 10 Long-term gain from sale-principal residence 10 0 11 Long-term gain from installment sales . . . .11 0 12 Net long-term gain or (loss) from partnershps 12 0 0 13 Capital gain distributions . . . . . . . . . . . . . . . 13 0 14 Enter gain from Form 4797, lines 6 or 8 . . . . . . . . 14 0 15 Long-term cap. loss carryover from after 1969 15 0 16 Add 9a & 9c & lines 10 - 15 in col (f) & (g) .16 0 0 17 Net long-term gain or (loss), col (f) & (g) of line 16 . 17 0 ======================================================================== 46 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel O. Schedule D - Capital Gains And Losses-Back Sheet ======================================================================== 1040 SCHEDULE D - CAPITAL GAINS AND LOSSES 1986 ------------------------------------------------------------------------ PART III Summary of Parts I and II ------------------------------------------------------------------------ 18 Combine lines 8 & 17, & enter net gain or (loss) here . 18 0 19 If line 18 shows a gain, enter the smaller of line 17 or 18. Enter 0 if there is a loss. 19 0 20 Enter 60% of line 19 . . . . . . . . . . . . . . . . . . 20 0 21 Subtract line 20 from 18. Enter on Form 1040, line 13 . 21 0 22 If line 18 shows a loss, enter one of the following amnts: a If line 8 is zero or a net gain, enter 50% of line 18; b If line 17 is zero or a net gain, enter line 18; or c If line 8 and line 17 are net losses, enter amount on line 8 added to 50% of the amount on line 17 . . . . . 22 NA 23 Enter here and as a loss on Form 1040, line 13, the smallest of: a The amount on line 22; b $3,000 ($1,500 if married & filing a sep. return); or c Taxable income, as adjusted . . . . . . . . . . . . . 23 NA ------------------------------------------------------------------------ PART IV Computation of Post-1969 Capital Loss Carryovers from 1986 to 1987 (Complete if loss on line 22 is more than loss on line 23) ------------------------------------------------------------------------ 24 Enter loss shown on line 8; if none, enter zero . . . . 24 NA 25 Enter gain shown on line 17. If line shows loss-zero . 25 NA 26 Subtract line 25 from line 24 . . . . . . . . . . . . . 26 NA 27 Enter smaller of line 23 or line 26 . . . . . . . . . . 27 NA 28 Subtract line 27 from line 26: SHORT-TERM LOSS CARRYOVER 28 NA 29 Subtract line 27 from line 23 . . . . . . . . . . . . . 29 NA 30 Enter loss from line 17; if none, enter zero . . . . . . 30 NA 31 Enter gain shown on line 8. If line shows a loss, zero 31 NA 32 Subtract line 31 from line 30 . . . . . . . . . . . . . 32 NA 33 Multiply amount on line 29 by 2 . . . . . . . . . . . . 33 NA 34 Subtract line 33 from line 32: LONG-TERM LOSS CARRYOVER 34 NA ------------------------------------------------------------------------ PART V Complete this Part Only If You Elect Out of the Installment Method and Report a Note or Other Obligation at Less Than Full Face Value ------------------------------------------------------------------------ Check here if you elect out of the installment method. ------> ____ Enter the face amount of the note or other obligation -------> 0 Enter the % of valuation of the note or other obligation ----> 0% ------------------------------------------------------------------------ PART VI Reconciliation of Forms 1099-B For Bartering Transactions 35 Form 1040 line 22 . . . . . . . . . . . . . . . . . . . 35 0 36 Schedule C (Form 1040) . . . . . . . . . . . . . . . . . 36 0 37 Schedule D (Form 1040) . . . . . . . . . . . . . . . . . 37 0 38 Schedule E (Form 1040) . . . . . . . . . . . . . . . . . 38 0 39 Schedule F (Form 1040) . . . . . . . . . . . . . . . . . 39 0 40 Other (identify) (if not taxable, indicate reason) ________________________________________________________ 40 0 41 Total (add lines 35 through 40) . . . . . . . . . . . . 41 0 ======================================================================== 47 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel P. Schedule E - Supplemental Income Schedule-Front Sheet ======================================================================== 1040 SCHEDULE E - SUPPLEMENTAL INCOME SCHEDULE 1986 ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] [Your SSN] ------------------------------------------------------------------------ PART I RENT AND ROYALTY INCOME OR (LOSS) ------------------------------------------------------------------------ 1 In the space provided 2 For each property listed, did you or below, show the kind a member of your family use for personal and location of each purposes any of the properties for more rental property. than the greater of 14 days or 10% of the total days rented at fair rental value during the tax year? YES NO Property A ________________________________________ ___ ___ Property B ________________________________________ ___ ___ Property C ________________________________________ ___ ___ ------------------------------------------------------------------------ RENTAL AND ROYALTY INCOME ------------PROPERTIES----------- TOTALS A B C (A+B+C) 3 a Rents received . . . . . 0.00 0.00 0.00 b Royalties received . . . 0.00 0.00 0.00 0.00 ------------------------------------------------------------------------ RENTAL AND ROYALTY EXPENSES ---------- 4 Advertising . . . . . . 4 0.00 0.00 0.00 ---------- 5 Auto and travel . . . . 5 0.00 0.00 0.00 ---------- 6 Cleaning and maint. . . 6 0.00 0.00 0.00 ---------- 7 Commissions . . . . . . 7 0.00 0.00 0.00 ---------- 8 Insurance . . . . . . . 8 0.00 0.00 0.00 ---------- 9 Legal & other fees . . 9 0.00 0.00 0.00 ---------- 10 Mortgage interest paid to financial institut . 10 0.00 0.00 0.00 ---------- 11 Other interest . . . . 11 0.00 0.00 0.00 ---------- 12 Repairs . . . . . . . . 12 0.00 0.00 0.00 ---------- 13 Supplies . . . . . . . 13 0.00 0.00 0.00 ---------- 14 Taxes (Do not include ---------- Windfall Profit Tax ---------- here. See Part III, ---------- line 34) . . . . . . . 14 0.00 0.00 0.00 ---------- 15 Utilities . . . . . . . 15 0.00 0.00 0.00 ---------- 16 Wages and salaries . . 16 0.00 0.00 0.00 ---------- 17 Other __________________ 0.00 0.00 0.00 ---------- (list) __________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- _____________________________ 0.00 0.00 0.00 ---------- 48 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ 18 Total expenses other than depreciation and depletion. Add 4-17 . 18 0.00 0.00 0.00 0.00 19 Depreciation expense, or depletion . . . . . 19 0.00 0.00 0.00 0.00 20 Total. lines 18 & 19 . 20 0.00 0.00 0.00 21 Income or (loss) from rental or royalty pro- perties. Subtract line 20 from line 3a or 3b . 21 0.00 0.00 0.00 22 Add properties with profits on line 21, and write the total profits here . . . . . . . . . . . . . . . . . . 22 0.00 23 Add properties with losses on line 21, and write the total (losses) here . . . . . . . . . . . . . . . . . . 23 0.00 24 Combine amounts on lines 22 and 23, and write the net profit or (loss) here . . . . . . . . . . . . . . . . . 24 0.00 ------------------------------------------------------------------------ 25 Net farm rental profit or (loss) from Form 4835-line 35. 25 0.00 26 Total rental or royalty income or (loss). Combine amounts on lines 24 and 25, and write the total here . . 26 0.00 ======================================================================== 49 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel Q. Schedule E - Supplemental Income Schedule-Back Sheet ======================================================================== 1040 SCHEDULE E - SUPPLEMENTAL INCOME SCHEDULE 1986 ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] [Your SSN] ------------------------------------------------------------------------ PART II INCOME OR (LOSS) FROM PARTNERSHIPS, ESTATES OR TRUSTS, OR S CORPORATIONS ------------------------------------------------------------------------ Partnerships and S Corporations ------------------------------------------------------------------------ (b)Enter (c)Chk if (d) Employ. (e) Net (f) Net (a) Name code foreign prt ID Num. Loss Income ___________________ ________ __________ __________ 0.00 0.00 ___________________ ________ __________ __________ 0.00 0.00 ___________________ ________ __________ __________ 0.00 0.00 ___________________ ________ __________ __________ 0.00 0.00 ___________________ ________ __________ __________ 0.00 0.00 27 Add amounts in columns (e) and (f) . . . . . .27 0.00 0.00 28 Combine amounts in columns (e) and (f), line 27. . . . . 28 0.00 29 Deduction for section 179 prop. (Form 1065, Sch. K-1). . 29 0.00 30 Total partnership and S corporation income or (loss). Combine amounts on lines 28 and 29. . . . . . . . . . . .30 0.00 ------------------------------------------------------------------------ Estates and Trusts ------------------------------------------------------------------------ (d) Employ. (e) Net (f) Net (a) Name (b) (c) ID Num. Loss Income ___________________ ___________ 0.00 0.00 ___________________ ___________ 0.00 0.00 ___________________ ___________ 0.00 0.00 ___________________ ___________ 0.00 0.00 ___________________ ___________ 0.00 0.00 31 Add columns (e) and (f) . . . . . . . . . . .31 0.00 0.00 32 Total estate and trust income or (loss). . . .32 0.00 ------------------------------------------------------------------------ PART III WINDFALL PROFIT TAX SUMMARY ------------------------------------------------------------------------ 33 Windfall profit tax credit or refund received in 1986 . 33 0.00 34 Windfall profit tax withheld in 1986 . . . . . . . . . . 34 0.00 35 Combine amounts on lines 33 and 34 . . . . . . . . . . . 35 0.00 ------------------------------------------------------------------------ PART IV SUMMARY ------------------------------------------------------------------------ 36 Total income or (loss). Lines 26, 30, 32, & 35. . . . . 36 0.00 ------------------------------------------------------------------------ 37 Farmers & fishermen: Write your share of GROSS FARMING AND FISHING INC appl to Pts I and II .37 0.00 50 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ PART V OPTIONAL DEPRECIATION WORKSHEET.-You may use this worksheet to figure depreciation only on property placed in service before 1981. If you placed any property in service after 1980, you must use Form 4562 for all property. ------------------------------------------------------------------------ (a) (b) (c) (d) (e) (f) (g) Description Date Cost or Deprec Deprec Life or Deprec of prop acquired otr basis allowed method rate this yr ------------------------------------------------------------------------ -------------------------------Property A------------------------------- __________ ________ 0.00 0.00 __________ 0.00 0.00 __________ ________ 0.00 0.00 __________ 0.00 0.00 Total (Property A) . . . . . . . . . . . . . . . . . . . . . . 0.00 -------------------------------Property B------------------------------- __________ ________ 0.00 0.00 __________ 0.00 0.00 __________ ________ 0.00 0.00 __________ 0.00 0.00 Total (Property B) . . . . . . . . . . . . . . . . . . . . . . 0.00 -------------------------------Property C------------------------------- __________ ________ 0.00 0.00 __________ 0.00 0.00 __________ ________ 0.00 0.00 __________ 0.00 0.00 Total (Property C) . . . . . . . . . . . . . . . . . . . . . . 0.00 ======================================================================== 51 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel R. Schedule F - Farm Income And Expenses - Front Sheet ======================================================================== 1040 SCHEDULE F - FARM INCOME AND EXPENSES 1986 ------------------------------------------------------------------------ Name of proprietor(s) [SSN] ------------------------------------------------------------------------ A Principal Product ______________________B Ag Activ Code ___________ C Accounting Method: Cash--->___________ Accrual----->___________ Emp ID num--->___________ ------------------------------------------------------------------------ D If you made an election in a prior year to include commodity credit loan proceeds as income in that year, check here-->___________ ------------------------------------------------------------------------ PART I Farm Income - Cash Method - Complete Parts I and II (Accrual method taxpayers complete Parts II & III, & line 12 of Part I.) ------------------------------------------------------------------------ 1 Sales of livestk & other items you bought for resale. . 1 0.00 2 Cost of livestk & other items you bought for resale . . 2 0.00 3 Subtract line 2 from line 1 . . . . . . . . . . . . . . 3 0.00 4 Sales of livestk, produce, grains, & other prod . . . . 4 0.00 5 a Total distrib recvd from coop . . .5a 0.00 b Less: Nonincome items . . . . . .5b 0.00 6 Net distributions. Subtract line 5b from line 5a . . . 6 0.00 7 Agricultural program payments: a Cash . . . . . . . . . . . . . . . . . . . . . . . .7a 0.00 b Materials and services . . . . . . . . . . . . . . .7b 0.00 8 Commodity credit loans under election (or forfeited). . 8 0.00 9 Crop insurance proceeds . . . . . . . . . . . . . . . . 9 0.00 10 Machine work . . . . . . . . . . . . . . . . . . . . .10 0.00 11 Other income including Federal & State gas tax credit .11 0.00 12 Gross income. Add lines 3, 4, 6, & 7a - 11. If accrual method, enter Part III, line 52 . . . . . . . .12 0.00 ------------------------------------------------------------------------ PART II Farm Deductions - Cash and Accrual Method ------------------------------------------------------------------------ 13 Breeding fees . . . . . . .13 0.00 26 Machine hire 0.00 14 Chemicals . . . . . . . . .14 0.00 27 Pension & 15 Conservation expenses . . .15 0.00 profit-shring 0.00 16 Depreciation, & sec 179 28 Rent of farm 0.00 expense deduction . . . . .16 0.00 29 Repairs 0.00 17 Employee benefit programs 30 Seeds, plants 0.00 other than on line 27 . . .17 0.00 31 Storage 0.00 18 Feed purchased . . . . . .18 0.00 32 Supplies 0.00 19 Fertilizers and lime . . .19 0.00 33 Taxes 0.00 20 Freight, trucking . . . . .20 0.00 34 Utilities 0.00 21 Gasoline, fuel, oil . . . .21 0.00 35 Vet fees, med 0.00 22 Insurance . . . . . . . . .22 0.00 36 Other exp - 23 Interest: a ______________ 0.00 a Mortgage . . . . . . . 23a 0.00 b ______________ 0.00 b Other . . . . . . . . 23b 0.00 c ______________ 0.00 24 a Labor hired 24a 0.00 d ______________ 0.00 b Jobs credit 24b 0.00 e ______________ 0.00 25 Net labor hired (24a-24b) .25 0.00 f ______________ 0.00 ------------------------------------------------------------------------ 37 Total deductions from Part II. Lines 13 through 36h .37 0.00 52 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ 38 Net farm profit or (loss)(sub. line 37 from line 12). If a profit, enter on Form 1040, line 19, & Sch SE, Part I, line 1. If a loss, you MUST go on to line 39 .38 0.00 ------------------------------------------------------------------------ 39 If you have a loss, do you have amounts for which YES ___ you are not at risk in this farm (see instructions)? NO ___ ======================================================================== 53 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel S. Schedule F - Farm Income And Expenses - Back Sheet ======================================================================== 1040 SCHEDULE F - FARM INCOME AND EXPENSES 1986 ------------------------------------------------------------------------ PART III Farm Income - Accrual Method ------------------------------------------------------------------------ 40 Sales of livestock, produce, grains, & other prod . . .40 0.00 41a Total dist recvd from cooperatives .41a 0.00 b Less: Nonincome items . . . . . . .41b 0.00 42 Net distributions. Subtract line 41b from 41a . . . .42 0.00 43 Agricultural program payments: a Cash . . . . . . . . . . . . . . . . . . . . . . . 43a 0.00 b Materials and services . . . . . . . . . . . . . . 43b 0.00 44 Commodity credit loans under election (or forfeited). .44 0.00 45 Machine work . . . . . . . . . . . . . . . . . . . . .45 0.00 46 Other income including Federal & State gas tax credit .46 0.00 47 Total. Add amounts on lines 40 and 42 through 46 . . .47 0.00 48 Inventory of livestk, produce, grains, and other products at beg of year . .48 0.00 49 Cost of livestk, produce, grains, & other products purchased during year .49 0.00 50 Add lines 48 and 49 . . . . . . . . .50 0.00 51 Inventory of livestk, produce, grains, and other products at end of year . .51 0.00 52 Cost of livestk, produce, grains, & other prod sold 52 0.00 53 Gross income. Enter here and on Part I, line 12 . . .53 0.00 ======================================================================== 54 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel T. Schedule G - Income Averaging ======================================================================== 1040 SCHEDULE G - INCOME AVERAGING 1986 ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] Enter a 1 here -------> NA ------------------------------------------------------------------------ STEP 1 ADD YOUR INCOME FROM 1983-1985 ------------------------------------------------------------------------ 1983 1 Fill in the amount from your 1983 Form 1040 (line 37) or Form 1040A (line 19), Form 1040EZ (line 7). If less than zero, enter zero . . . . 1 0.00 1984 2 Fill in the amount from your 1984 Form 1040 (line 37) or Form 1040A (line 19), or Form 1040EZ (line 7). If less than zero, enter zero . . . . 2 0.00 1985 3 Fill in the amount from your 1985 Form 1040 (line 37) or Form 1040A (line 19), or Form 1040EZ (line 7). If less than zero, enter zero . . . . 3 0.00 Total 4 Enter all income less deductions earned outside of the U.S. or within U.S. possessions & excluded for 1983 thru 1985 (include housing exclusion) . 4 0.00 5 Add lines 1 through 4 . . . . . . . . . . . . . 5 0.00 ------------------------------------------------------------------------ STEP 2 FIGURE YOUR AVERAGEABLE INCOME ------------------------------------------------------------------------ 6 Divide the amount on the line 5 by three (3) . . 6 0.00 7 Multiply the amount on line 6 by 140% (1.4) . . 7 0.00 8 Enter your taxable income for 1986 from Form 1040, line 37 . . . . . . . . . . . . . . . . . 8 ERR 9 If you received a premature or excessive distri- butiion subject to a penalty under section 72, see instructions . . . . . . . . . . . . . . . . 9 0.00 10 Subtract line 9 from line 8 . . . . . . . . . .10 ERR 11 If you live in a community property state and are filing a separate return, see instructions .11 0.00 12 Subtract line 11 from line 10. If less than zero, enter zero . . . . . . . . . . . . . . . .12 ERR 13 Enter the amount from line 7 above . . . . . . .13 0.00 14 Subtract line 13 from line 12. This is your averageable income. If this line is $3,000 or less, do not complete the rest of this form . .14 ERR 55 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ STEP 3 FIGURE YOUR TAX ------------------------------------------------------------------------ 15 Multiply the amount on line 14 by 25% (.25) . .15 ERR 16 Enter the amount from line 7 above . . . . . . .16 0.00 17 Add lines 15 and 16 . . . . . . . . . . . . . .17 ERR 18 Enter the amount from line 11 above . . . . . .18 0.00 19 Add lines 17 and 18 . . . . . . . . . . . . . .19 ERR 20 Tax on amount on line 19 (from Tax Rate Schedule X, Y, or Z) . . . . . . . . . . . . . . . . . .20 ERR 21 Tax on amount on line 17 (from Tax Rate Schedule X, Y, or Z) . . . . 21 ERR 22 Tax on amount on line 16 (from Tax Rate Schedule X, Y, or Z) . . . . 22 0.00 23 Subtract line 22 from line 21 . . 23 ERR 24 Multiply the amount on line 23 by 3 . . . . . .24 ERR 25 Tax on amount on line 8 (from Tax Rate Schedule X, Y, or Z) . . . . 25 ERR 26 Tax on amount on line 10 (from Tax Rate Schedule X, Y, or Z) . . . . 26 ERR 27 Subtract line 26 from line 25 . . . . . . . . .27 ERR 28 Add lines 20, 24, 27. Write the result here and on Form 1040, line 38 if less than the tax figured using the tax rate schedules or table. .28 NA ======================================================================== 56 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel U. Schedule R - Credit For Elderly & The Disabled-Front Sht ======================================================================== 1040 SCHEDULE R - CREDIT FOR THE ELDERLY AND THE 1986 PERMANENTLY AND TOTALLY DISABLED ------------------------------------------------------------------------ Part I Check the box that applies to your filing status and age ------------------------------------------------------------------------ Single 1 You were 65 or over . . . . . . . . . . . . . 1 NA 2 You were under 65 and you retired on permanent and total disability . . . . . . . . . . . . 2 NA ------------------------------------------------------------------------ Married 3 Both spouses were 65 or over . . . . . . . . 3 NA filing a 4 Both spouses were under 65, but only one joint spouse retired on permanent & tot disability. 4 NA return 5 Both spouses were under 65, and both retired on permanent and total disability . . . . . . 5 NA 6 One spouse was 65 or over, and the other spouse was under 65 and retired on permanent and total disability . . . . . . . . . . . . 6 NA 7 One spouse was 65 or over, and the other spouse was under 65 and NOT retired on permanent and total disability . . . . . . . 7 NA ------------------------------------------------------------------------ Married 8 You were 65 or over, and did not live with filing a your spouse at any time in 1986 . . . . . . . 8 NA separate 9 You were under 65, you retired on permanent return and total disability and did not live with your spouse at any time in 1986 . . . . . . . 9 NA Note: If you checked the box on line 1, 3, 7, or 8, skip Part II and complete Part III. If you checked the box on line 2, 4, 5, 6, or 9, complete Parts II and III. ------------------------------------------------------------------------ Part II Statement of permanent and total disability (Complete ONLY if you checked the box on line 2, 4, 5, 6, or 9 above) ------------------------------------------------------------------------ IF: 1 You filed a physician's statement for this disability for 1983 or an earlier year, or you filed a statement for tax years after 1983 and your physician checked Box B on the statement, AND 2 Due to your continued disabled condition you were unable to engage in any substantial gainful activity in 1986, check this box . . . . . . . . . . . . . . . . . . . . . . ___ If you checked this box, you do not have to file another statement for 1986. If you did not check this box, have your physician complete the following statement: 57 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel ------------------------------------------------------------------------ Physician's Statement ------------------------------------------------------------------------ I certify that __________________________________________________ Name of disabled person was permanently and totally disabled on January 1, 1976, or January 1, 1977, OR was permanently and totally disabled on the date he or she retired. Date retired if retired after Dec 31, 1976. ___________ Physician: Check Box A or B below and sign. Check only one box. A. ___ The disability has lasted, or can be expected to last continuously for at least a year . . . . . . . . __________________________ Physician's signature & date B. ___ There is no reasonable probability that the disabled condition will ever improve . . . . . __________________________ Physician's signature & date ------------------------------------------------------------------------ Physician's name Physician's address ======================================================================== 58 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel V. Schedule R - Credit For Elderly & The Disabled-Back Sheet ======================================================================== 1040 SCHEDULE R - CREDIT FOR THE ELDERLY AND THE 1986 PERMANENTLY AND TOTALLY DISABLED ------------------------------------------------------------------------ 10 Write: $5,000 if you checked the box on line 1, 2, 4, or 7 in Part I, OR $7,500 if you checked the box on line 3, 5, or 6 in Part I, OR $3,750 if you checked the box on line 8 or 9 in Part I . . . . . . . . . . . . . . . . . . .10 ERR Caution: If you checked the box on line 2, 4, 5, 6, or 9 in Part I, you MUST complete line 11 below. Otherwise, skip line 11 and enter the amount from line 10 on line 12. 11 Enter on this line your taxable disability income (and also your spouse's if you checked the box on line 5 in Part I) that you reported on Form 1040. However, if you checked the box on line 6 in Part I, enter on this line the taxable disability income of the spouse who was under age 65 PLUS $5,000. (For more details on what to include, see the instructions.) . . . . . . . . . . . .11 0.00 12 If you completed line 11 above, compare the amounts on lines 10 and 11, and write the smaller of the two amounts on this line. Otherwise, write the amount from line 10 on this line . . . . . . . . . . . . . . . . .12 ERR 13 Enter the following pensions, annuities, or disability income that you (and your spouse if you file a joint return) received in 1986: a Nontaxable part of soc sec ben . 13a 0.00 b Nontaxable part of railroad retire- ment benefits treated as social security; and Nontaxable veterans' pensions; and any other pension, annuity, or disability benefit that is excluded from income under any other provision of law. . . . 13b 0.00 c Add lines 13a and 13b. If you did not receive any of the types of nontaxable income listed on line 13a or 13b, enter 0 on line 13c . 13c 0.00 14 Write amount from Form 1040, line 33 . . . . . . . . . .14 0.00 15 Enter: $7,500 if you checked the box on line 1 or 2 in Part I, OR $10,000 if you checked the box on line 3, 4, 5, 6, or 7 in Part I, OR $5,000 if you checked the box on line 8 or 9 in Part I . . . . . . . . . .15 ERR 16 Subtract line 15 from line 14. Write the result. If line 15 is more than line 14, write 0 . . . . . . . .16 ERR 17 Divide line 16 by 2. . . . . . . . . .17 ERR 18 Add lines 13c and 17. Enter the total . . . . . . . .18 ERR 59 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel 19 Subtract line 18 from line 12. Enter the result. If the result is zero or less, stop here; you cannot take the credit. Otherwise, go on to line 21 below . . . .19 ERR 20 Percentage used to figure the credit . . . . . . . . .20 x .15 21 Multiply the amount on line 19 by the percentage (.15) on line 20 and write the result. This is your credit for the elderly and the permanently and totally disabled. Also write this amt on Form 1040, line 42 .21 ERR ======================================================================== 60 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel W. Schedule SE - Computation Of Social Sec. Self-Employ. Tax ======================================================================== 1040 SCHEDULE SE - COMPUTATION OF SOCIAL SECURITY SELF-EMPLOYMENT TAX ------------------------------------------------------------------------ Name of self-employed person [SSN] SCH SE----> NA FARM OPT--> NA NON-FARM OPT----> NA ------------------------------------------------------------------------ Part I Regular Computation of Net Earning From Self-Employment ------------------------------------------------------------------------ 1 Net farm profit or (loss) from Schedule F, line 38 . . 1 0.00 2 Net profit or (loss) from Schedule C, line 32 . . . . . 2 0.00 ------------------------------------------------------------------------ Part II Optional Computation of Net Earnings From Self-Employment ------------------------------------------------------------------------ Generally, this part may be used only if: A Your gross farm income (Schedule F, line 12) was not more than $2,400; or B Your gross farm income (Schedule F, line 12) was more than $2,400 and your net farm profits (Schedule F, line 38) were less than $1,600; or C Your net nonfarm profits (Schedule C, line 32) were less than $1,600 and also less than 2/3 of your gross nonfarm income (Schedule C, line 5). ------------------------------------------------------------------------ 3 Maximum income for optional methods . . . . . . . . . . 3 1,600.00 4 Farm Optional Method-If you meet test A or B above, enter: the smaller of 2/3 of gross farm income from Schedule F, line 12, or $1,600 . . . . . . . . . . . . 4 NA 5 Subtract line 4 from line 3 . . . . . . . . . . . . . . 5 NA 6 Nonfarm Optional Method-If you meet test C above, enter: the smallest of 2/3 of gross nonfarm income from Schedule C, line 5, or $1,600, or line 5 above . . . . 6 NA ------------------------------------------------------------------------ Part III Computation of Social Security Self-Employment Tax ------------------------------------------------------------------------ 7 Amount from Part I, line 1, or Part II, line 4 . . . . 7 0.00 8 Amount from Part I, line 2, or Part II, line 6 . . . . 8 0.00 9 Add lines 7 and 8. If less than $400, omit remainder . 9 0.00 10 The largest amount of combined wages & self-employment earnings subject to social security for 1986 is . . . .10 42,000.00 11a Tot social security wages/tips from W-2 0.00 b Unreported tips subject to soc sec tax 0.00 c Add lines 11a and 11b . . . . . . . . . . . . . . . 11c 0.00 12a Subtract line llc from line 10 . . . . . . . . . . . 12a 42,000.00 b Enter your "qualified" U.S. Gov wages 0.00 c Enter your Form W-2 wages from a church 0.00 13 Enter the smaller of line 9 or line 12a . . . . . . . 13 0.00 14 If line 13=$42,000, enter $5,166-Else line 13 X .123 14 NA ======================================================================== 61 FITT86 User's Manual Copyright (C) 1984, 1985, 1986 Ronald A. Ruel X. Schedule W - Deduct. For A Married Couple When Both Work ======================================================================== 1040 SCHEDULE W - DEDUCTION FOR A MARRIED COUPLE 1986 WHEN BOTH WORK ------------------------------------------------------------------------ [Name(s) as shown on Form 1040] ------------------------------------------------------------------------ STEP 1 FIGURE YOUR EARNED INCOME ------------------------------------------------------------------------ . (a) You (b) Your spouse 1 Wages, salaries, tips, etc. . . . . . . . 1 0.00 0.00 2 Net profit or (loss) from self- . employment . . . . . . . . . . . . . . . 2 0.00 0.00 3 Add lines 1 and 2: Total earned income. . 3 0.00 0.00 ------------------------------------------------------------------------ STEP 2 FIGURE YOUR QUALIFIED EARNED INCOME ------------------------------------------------------------------------ 4 Adjustments from 1040 lines 25, 26, 27, and any repayment of sub-pay included on . line 31 . . . . . . . . . . . . . . . . . 4 0.00 0.00 5 Subtract line 4 from line 3 . . . . . . . 5 0.00 0.00 ------------------------------------------------------------------------ STEP 3 FIGURE YOUR DEDUCTION ------------------------------------------------------------------------ 6 Smaller of columns 5(a) and 5(b), but not more than $30,000 . . . . . . . . . . . . . . . . . . . 6 0.00 7 Percentage used to figure the deduction (10%) . . . . . 7 0.10 8 Multiply line 6 by line 7. This is your deduction. . . 8 0.00 ======================================================================== 62