Schedule C Test Se t

5: Mary Jones

Taxpayer Documents
Social security cards for Mary and Susan Jones
Completed intake and interview sheet
Form 1099-MISC

Interview Notes
Since 2006, Mary has been licensed to provide child daycare in her home in Illinois
for the state Department of Human Services. Mary is a cash basis taxpayer and
materially participates in the business.
Mary cared for three pre-school children eight hours a day, five days a week, for 50
weeks in 2014. On every day the daycare was open, she spent one additional hour
on cleaning and recordkeeping related to the daycare business.
Mary received a Form 1099-MISC from the state Department of Human Services.
She was also paid $1,300 in cash directly from parents for daycare.
Mary rents a furnished apartment and paid $950 per month rent, which includes
utilities except electricity. The total area of the apartment is 1,200 square feet and
she used 960 square feet of the apartment on a regular basis for daycare.
Marys utility expense for electricity was $1,068 for all of 2014.
Mary paid $75 per month for renters insurance.
Mary kept records of the meals and snacks served to the children, but she does not
have all of her grocery receipts. She did not receive a government food subsidy.
Based on her calendar and notes, she served the following meals:
725 breakfasts
996 lunches and dinners combined
1,4 5 0 snacks
Mary has receipts for the following items that she purchased for her business:
$248 for games and art supplies
$110 for cleaning supplies
$267 for paper products
Mary spent $240 on business use of her cell phone.

Mary is not claiming de reciation on any items urchased in a revious tax year.

VITA Schedule C Project Test

Test

14

 Mary drives once a week to the store for groceries and supplies for her business.
She owns one vehicle, which was placed in service on September 15, 2011. She
has a log which shows that she drove 674 business miles in 2014. Total mileage
on her car for the year was 8,000. She elects to use the standard mileage rate.
Mary is not required to file any Form 1099s.

VITA Schedule C Project Test

Test

CORRECTED (if checked)

PAYERS name, street address, city or town, province or state, country, ZIP
or foreign postal code, and telephone no.

T
eSTATE DEPT. OF HUMAN
SERVICES
xt

MARY M.
JONES
Street address (including apt. no.)

7700 SECOND AVENUE

3G

Form 1099-MISC

3 Other income

4 Federal income tax withheld

5 Fishing boat proceeds

6 Medical and health care payments

7 Nonemployee compensation

8 Substitute payments in lieu of

dividends or interest

APT

T
e
14,60
$
9 xt
9 Payer made direct sales of
$5,000 or more of consumer
products to a buyer
(recipient) for resale a

City or town, province or state, country, and ZIP or foreign postal code

SCOTTSDALE, AZ
85250

11 Foreign tax paid

$
10 Crop insurance proceeds

$
12 Foreign country or U.S. possession

Account number (see instructions)

13 Excess golden parachute

payments

Form 1099-MISC

Miscellaneous
Income
Copy B
For Recipient

515-XX-

RECIPIENTS name

2014

2 Royalties

PAYERS federal identification number RECIPIENTS identification number

15a Section 409A deferrals

OMB No. 1545-0115

418 SMITH STREET

PHOENIX, AZ 85001

66-6XXXXXX
XXXX

1 Rents

15b Section 409A income

$
(keep for your records)

16 State tax withheld

$
$
www.irs.gov/form1099misc

14 Gross proceeds paid to an

attorney

$
17 State/Payers state no.

This is important tax

information and is
being furnished to
the Internal Revenue
Service. If you are
required to file a
return, a negligence
penalty or other
sanction may be
imposed on you if
this income is
taxable and the IRS
determines that it
has not been
reported.
18 State income

$
$
Department of the Treasury - Internal Revenue Service