IRS Tax Simulations Overview

Overview

The IRS Understanding Taxes program offers interactive simulations where students practice filing tax returns by assuming the roles of 20 different taxpayers, learning about various tax forms, credits, and filing scenarios.

Simulations Program

Students apply tax knowledge through hands-on practice with realistic taxpayer scenarios
All simulations involve electronic tax return filing processes
Topics range from basic forms to complex credits and business income
Each simulation focuses on specific taxpayer situations and corresponding tax forms

Available Tax Simulations

The program includes 20 distinct simulations covering fundamental to advanced tax filing topics:

Simulation	Taxpayer	Topic
1	Lawrence Red Owl	Completing Form W-4
2	Cicely King	Using W-2 to File Form 1040
3	Tasha Miller	Using W-2 and Form 1099-INT to File 1040
4A	Michael Brand	Identifying Dependents as Single Taxpayer
4B	Samantha Nichols	Identifying Dependents as Single Taxpayer with Children
4C	Sandya Prashad	Identifying Dependents
5	Joshua Bell	Identifying Filing Status and Dependents
6	Alicia Garcia	Identifying Filing Status, Dependents, and Exemptions
7A	Monica Lindo	Completing Tax Return as a Dependent
7B	Belinda Russell	Completing Return Using Married Filing Separately Status
8	Scott Newberry	Claiming Child Tax Credit and Additional Child Tax Credit
9	Albert Wentworth	Claiming Tax Credit for Child and Dependent Care Expenses
10A	Jon Stillman	Claiming Education Credits for American Opportunity Credit
10B	Judy Hood	Claiming Education Credits for Lifetime Learning Credit
11A	Seth Wiggins	Claiming Earned Income Credit as Single Taxpayer
11B	April Beach	Claiming Earned Income Credit as Married Taxpayer
12	Jacob Hastings	Completing Tax Return Using Form 1040A to Claim Dependent
13	Madison Mailey	Completing Tax Return Using Head of Household Filing Status
14A	Rita Bentley	Using Form 1099-INT to Complete Schedule C, SE, and 1040
14B	James King	Using Form 1099-MISC to Complete Schedule C, SE, and 1040

Key Tax Forms Covered

Form W-4 for withholding elections
Form W-2 for wage and salary reporting
Form 1040 and 1040A for individual tax returns
Form 1099-INT for interest income; Form 1099-MISC for miscellaneous income
Schedule C for business profit or loss
Schedule SE for self-employment tax calculations

Tax Credits and Concepts

Child Tax Credit and Additional Child Tax Credit provisions
Earned Income Credit for low to moderate income workers
American Opportunity Credit for qualified education expenses
Lifetime Learning Credit for continuing education costs
Tax Credit for Child and Dependent Care Expenses

Filing Status Options

Single taxpayer scenarios
Married Filing Separately considerations
Head of Household qualifications
Dependent status rules and implications