| Course | AC256 Federal Tax |
|---|---|
| Unit | Unit 5 |
| Paper type | Tax return problem |
| Length | About 570 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Accounting |
| Updated | October 2026 |
Free sample paper for AC256 Unit 5
Line by Line to a $1,343 Refund: A Unit 5 Form 1040 Problem for a Single Parent and Her Nine-Year-Old
[Student Name]
Purdue University Global
AC256: Federal Tax
Unit 5 Tax Return Problem
[Instructor Name]
[Date]
The taxpayer, her daughter and all amounts are composite; the forms, statute and IRS sources cited are real, and the return is for tax year 2025.
Taxpayer Facts
Keisha, head of household, one qualifying child, Amara, age 9. Form W-2: wages $52,000; federal income tax withheld $2,100. Form 1099-INT: interest $180. Form 1099-DIV: ordinary dividends $600, all qualified. Form 1098-E: student loan interest paid $1,100. No other income, adjustments or credits.
Workpaper Keyed to Form 1040
1. Line 1a, wages: $52,000, from Form W-2 box 1.
2. Line 2b, taxable interest: $180, from Form 1099-INT.
3. Lines 3a and 3b, qualified and ordinary dividends: $600 each, from Form 1099-DIV.
4. Line 9, total income: $52,000 plus $180 plus $600 equals $52,780.
5. Line 10, adjustments from Schedule 1: student loan interest, $1,100, allowed in full because modified adjusted gross income is below the phaseout range.
6. Line 11, adjusted gross income: $52,780 minus $1,100 equals $51,680.
7. Line 12, standard deduction for head of household in 2025: $23,625 (Internal Revenue Service, 2025a).
8. Line 15, taxable income: $51,680 minus $23,625 equals $28,055.
Tax on the Qualified Dividends Worksheet
Taxable income of $28,055 includes $600 of qualified dividends. The ordinary portion is $28,055 minus $600, or $27,455. Because taxable income is below $64,750, the top of the 0 percent bracket for head of household filers in 2025, the dividends are taxed at 0 percent (Tax Imposed, 2024).
Tax on $27,455 from the Tax Table, head of household column, at the $27,450 to $27,500 row: $2,957. This equals 10 percent of the first $17,000, $1,700, plus 12 percent of the $10,475 from $17,000 to the row's midpoint, $1,257.
9. Line 16, tax: $2,957.
Credits and Payments
10. Line 19, child tax credit from Schedule 8812: $2,200 for Amara, under 17 at year end and with a valid Social Security number. Keisha's income is far below the $200,000 phaseout, and her tax of $2,957 absorbs the full credit, so no refundable additional child tax credit is needed (Internal Revenue Service, 2025b).
11. Line 22, tax after credits: $2,957 minus $2,200 equals $757.
12. Line 24, total tax: $757.
13. Line 25a, federal income tax withheld: $2,100.
14. Line 34, overpayment: $2,100 minus $757 equals $1,343, refunded.
Without the qualified dividends worksheet, the $600 of dividends would have been taxed at 12 percent, adding $72 of tax, so the worksheet is worth using even when the dividend is small.
Checks and Notes
The earned income credit was tested and is not available: with one child, the 2025 credit phases out completely at income just above $50,400 for head of household filers, and Keisha's adjusted gross income is $51,680. Head of household status, rather than single, raised her standard deduction by $7,875 and widened her 10 and 12 percent brackets. The refund equals withholding less total tax, and every line traces to a source document or a computation shown above. Keisha should keep her Forms W-2, 1099-INT, 1099-DIV and 1098-E with a copy of the return, along with Amara's Social Security card and school records showing her address, which support the residency test for both the child tax credit and head of household status.
References
Internal Revenue Service. (2025a). 1040 and 1040-SR instructions: Tax year 2025. https://www.irs.gov/instructions/i1040gi
Internal Revenue Service. (2025b). Instructions for Schedule 8812 (Form 1040), Credits for qualifying children and other dependents. https://www.irs.gov/instructions/i1040s8
Tax Imposed, 26 U.S.C. ยง 1 (2024).
Reading the AC 256 Unit 5 instructions
The fifth AC256 unit gives a taxpayer's documents and asks for a completed return, usually Form 1040 with any needed schedules. Build a workpaper keyed to the form's line numbers, one row for each line that holds a figure, with the source document or computation beside it. Report income from each information return, take adjustments on Schedule 1, and use the standard deduction that matches the taxpayer's status for that return year. Compute tax on the qualified dividends worksheet whenever the taxpayer has qualified dividends or capital gains, and use the Tax Table when taxable income is under $100,000. Apply credits from their schedules, then compare total tax with payments. Test credits the taxpayer might qualify for, even if they fail. Use the year's forms and cite IRS instructions in APA 7.
Inside the AC256 Unit 5 example
The sample lists Keisha's facts, from her Form W-2 to her Form 1098-E. The workpaper follows Form 1040 from line 1a to line 15, reaching $28,055 of taxable income. A tax section explains why the $600 of dividends falls in the 0 percent bracket and shows the Tax Table amount of $2,957, with the bracket arithmetic behind it. Credits and payments follow: the $2,200 child tax credit from Schedule 8812, tax after credits of $757, withholding of $2,100 and the $1,343 refund. The highlighted sentence shows the $72 the worksheet saves. A checks section rules out the earned income credit by its 2025 phaseout, notes the value of head of household status and lists the records to keep.
AC256 Unit 5 rubric: what earns full points
Return problems are graded on correct figures, correct placement and a correct final result. Each line should trace to a document or a computation, so keyed workpapers make partial credit possible. The standard deduction and brackets must match the filing status and year. Using the qualified dividends worksheet when it applies is a frequent scoring point. Credits must come from the right schedule and respect their limits. Testing credits the taxpayer does not receive shows thoroughness and often earns credit. The refund or balance due must equal payments less total tax. Current-year forms and APA 7 citations to IRS instructions complete the grade.
AC256 Unit 5 help from the desk
The most common return error is taxing qualified dividends at ordinary rates because the worksheet was skipped. Others use the single standard deduction for a head of household. Student loan interest is placed on Schedule A instead of Schedule 1. The child tax credit is claimed for a child who turned 17. The Tax Table is ignored and the bracket formula applied to an exact figure, producing a small difference. Withholding is copied from the wrong box. If your taxpayer's documents are in front of you and the return will not balance to the refund, a writer can prepare it with a keyed workpaper from your problem.
Get an AC256 Unit 5 example written to your instructions
The Unit 5 fact pattern comes first, along with the rubric and whatever blank forms or rate tables came with the assignment. The return is completed line by line with a workpaper behind it, figures bracketed where the pattern leaves them open. Turnaround is 24-48h, and a first custom sample costs nothing to request. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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AC256 Unit 5 questions, answered
Does the workpaper have to follow the form's line numbers?
It is the clearest arrangement, and many AC256 graders expect it. Keyed rows let a reader move from a figure on the form to its source in one step. Where your section asks for a narrative computation instead of forms, the same rows become short paragraphs in the same order, and the sequence of the return still organizes the answer.
Which tax year's forms does the example use?
The year the fact pattern names. Forms are revised annually and line numbers shift, so the example is built on whatever version the prompt specifies and brackets every amount that depends on the year. If your section hands out its own blank forms, those govern, even when a newer version has since been released.
Why is only part of the child tax credit refundable?
The credit first reduces tax to zero, and any remainder is refundable only up to a limit computed on Schedule 8812 from earned income. The example shows that computation because a composite parent with modest tax often has an unused remainder. The limit amount changes with the tax year, so it appears in brackets rather than as a fixed figure.
Where can I find a free AC256 Unit 5 sample paper?
You can read a complete AC256 Unit 5 tax return problem here, a 2025 Form 1040 for a head of household with a workpaper keyed to each line and a $1,343 refund.
Why is there no earned income credit in the AC256 Unit 5 sample?
With one qualifying child, the 2025 earned income credit phases out completely at income just above $50,400 for a head of household. Keisha's adjusted gross income of $51,680 is too high.