Prepare the 2014 Federal Individual Income Tax Return for your client. Please complete the required federal individual income tax return forms for Joseph and Diana Cohen for the 2014 tax year.  Ignore the requirement to attach the Form(s) W-2 to the front page of the Form 1040.  If required information is missing, use reasonable assumptions to fill in the gaps. Joseph and Diana Cohen live in Pleasantville, New Jersey.  Joseph is the Vice President of Sales at a small start-up company.  Diana is a former advertising executive who currently consults with former clients.  She also serves on the board of directors of an advertising company.  The Cohens have three children: Rebecca (age 18), Alan (age 15), and David (age 12).In January, Rebecca left home to attend a liberal arts college.  All three children qualify as Joseph and Diana's federal income tax dependents. The Cohens plan to file a joint tax return.The Cohens provided the following information:  Joseph'ssocial security number is 598-94- 2583  Diana's social security number is 301-52- 2942  Rebecca's social security number is 887-44- 8710  Alan's social security number is 810-42- 9092  David's social security number is 855-11- 3021  The Cohen's mailing address is 85 North Maple Drive, Pleasantville, New Jersey 08233 Joseph Cohen reported the following the following information relating to his employment during the year: Company Gross Wages Federal Income Alternative Energy The above amounts do not reflect any income items described below.Joseph's employer withheld all payroll taxesit was required to withhold. The Cohens also made estimated tax payment as follows: April 15, 2014 $200.00 June 15, 2014 $200.00 September 15, 2014 January 15, 2015 $200.00 Tax Withholding State Income Tax Withholding $115,325 $29,230 $14,400 $200.00 Diana Cohen received the following revenue during the year (she uses the cash method of accounting). Consulting revenue reported to her on a Form 1099-MISC, Box 7                 Jensen's Health Products                             $8,500                 Strategic Solutions                                           $3,750                 Board of director compensation reported to her on a Form 1099-MISC, Box 7                                 Natural Sunshine, Inc.                                    $6,500 During the year, Diana paid the following business expenses:                 Consultant-related:                                 Airfare                                                                  $2,900                                 Hotel                                                                     $1,450                                 Meals                                                                    $390                                 Parking                                                                 $320 Diana drove 290 business milesfor her consulting-related activities (she has documentation to verify)                 Board of Director-related:                                 Meals                                                                    $125                                 Hotel                                                                     $225 Diana drove 315 business milesfor her board of director activities (she has documentation to verify) Neither of Diana's business activities s required the filing of Form(s) 1099 to report payments she made during the tax year.  In addition, Ms. Cohen drove a 2011 Lexus purchased on January 1, 2011 for all of her business mileage.  She drove the vehicle a total of 10,605 miles during the year for all purposes.  Diana has written documentation to support the mileage amounts.  She also has access to another vehicle for personal purposes. The Cohens also received the following during the year: Interest income from First Bank of New Jersey                                  $320 Interest income from Patterson, New Jersey School District        $200 Interest income from U.S. Treasury Bond                                             $350 Interest income from General Mills corporate bond                        $400 Qualified dividend income from Rio Tinto                                             $1,500 Qualified dividend income from Microsoft                                           $750 Qualified dividend income from Cooper Tire                                       $200 Qualified dividend income from Cardinal Health                                                $425 Qualified dividend income from Union Pacific                                     $140 Qualified dividend income from Procter & Gamble                           $190 Qualified dividend income from PepsiCo                                                               $225 Qualified dividend income from Kellogg                                                                $200 Qualified dividend income from Abbott Labs                                       $275 Qualified dividend income from 3M                                                        $350 Dividend income (not qualified) from China Fund                             $2,000 The Cohens did not own, control or manage any foreign bank accounts nor were they a grantor or beneficiary of a foreign trust during the tax year. The Cohens had the following activity in their brokerage account during the year(all transactions were reported on a form 1099-B with Box A checked): Sold 2,000 shares of Microsoft                                   7/1/14                                   $22,500 Sold 75 shares of Apple                                                 4/15/14                                $28,750 Sold 350 shares of Cooper Tire                                   10/14/14                              $14,700 Sold 1,000 shares of Cardinal Health                        9/3/14                                   $35,000 Sold 50 shares of Union Pacific                                   1/7/14                                   $2,750 Purchased 100 shares of Procter&Gamble            7/10/14                                $7,700 Purchased 75 shares of Apple                                    4/18/14                                $29,000 Purchased 350 shares of Cooper Tire                      11/1/14                                $14,000 Purchased 350 shares of PepsiCo                              5/14/14                                $32,000 Purchased 300 shares of Kellogg                                               10/14/143                            $21,000 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 2,000 shares of Microsoft on 5/1/14 for $21,000 Purchased 200 shares of Apple on 3/8/2011 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/2010 for $9,000 Purchased 50 shares of Cooper Tire on 6/28/14 for $2,000 Received 1,000 shares of Cardinal Health from Diana's father as a gift on 10/10/97.  The donor's basis was $7,000.  Fair market value of the stock at the date of the gift was $41,000 Purchased 100 shares of Union Pacific on 9/5/12 for $6,000 The Cohens have a $43,000 long-term capital loss carryoverfrom their prior tax year. The Cohens received a New Jersey state income tax refund of $400 in May of 2014.  The Cohens received the refund because they had overpaid their New Jersey state individual income tax in 2013.On their 2013 Federal income tax return, the Cohens deducted and received tax benefit for all of thestate tax income taxes they paid in 2013. Diana is a 10% owner in an advertising agency named Bright Ideas ("BI") (EIN 20- 1234567).  BI is a Subchapter S corporation.  The company reported ordinary business income for theyear of $150,000.  Sarah acquired the stock several years ago.  Her basis in the stock before considering her 2014income allocation was $92,000.  Sarah is a passive owner with respect to this entity. Diana is also a 20% owner in Natural Sunshine, Inc. ("NS") (EIN 24-9876543).  NS is a Subchapter S corporation.  The company reported an ordinary business loss for the year of ($80,000).  Sarah acquired the stock several years ago.  Her basis in the stock before considering her 2014loss allocation was $45,000.  Sarah is a passive owner with respect to this entity. Joseph received 5,000 shares of restricted (common) stock from his employer on July 1, 2014.  The terms of the restricted stock grant are such that if Joseph is still employed by Alternative Energy on July 1, 2019the entire 5,000 shares will vest and become his property.  Joseph, upon the advice of his tax advisor, prepared and filed an IRC Section 83(b) election on July 8, 2014.  On July 1, 2014, shares were valued at $5 per share.  Joseph estimates the value of the shares in five years will be at least $150 per share.  Joseph notified Alternative Energy about the IRC Section 83(b) election in a timely manner.  None of the income tax consequences of this restricted stock grant were included in the $115,325 reported as part of Joseph's gross wages.