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Validated Scenarios
Each scenario below represents a real-world tax situation with specific inputs, the IRS forms involved, and a comparison of hand-calculated expected values against OpenTax computed results. All amounts are for Tax Year 2025.
Important disclaimer
These scenarios validate OpenTax's computation logic against hand-calculated expected values. They do not constitute tax advice. OpenTax is not a substitute for a qualified tax professional. See known limitations for scope details.
Scenario coverage matrix
All scenarios target Tax Year 2025 federal returns unless noted. Filing statuses covered: Single, MFJ, Head of Household.
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Scenario
Filing Status
Key Forms
Status
1 Single W-2 earner, standard deduction Single 1040 2 Married filing jointly, two W-2s, 2 dependents MFJ 1040, Sch B 3 Stock sales with wash sale adjustments Single 1040, Sch D, 8949 4 HSA contributions & distributions Single 1040, 8889 5 Itemized deductions (mortgage, charity, medical) MFJ 1040, Sch A 6 Rental income with depreciation Single 1040, Sch E 7 AMT triggering scenario (ISO exercise) Single 1040, 6251 8 EITC with qualifying children HoH 1040 9 Education credits (AOTC + LLC) MFJ 1040, 8863 10 California state return (540) Single 1040, CA 540
Scenario details
1. Single W-2 earner, standard deduction
Inputs
Filing status: Single
W-2 wages: $85,000
Federal withholding: $12,500
Interest income (1099-INT): $1,200
Deduction method: Standard
Results
Line Expected Computed
Total income (Line 9) $86,200 $86,200 AGI (Line 11) $86,200 $86,200 Standard deduction $15,750 $15,750 Taxable income (Line 15) $70,450 $70,450 Total tax (Line 24) $11,020 $11,020 Refund $1,480 $1,480
2. Married filing jointly, two W-2s, 2 dependents
Inputs
Filing status: Married Filing Jointly
W-2 #1 wages: $95,000
W-2 #2 wages: $62,000
Federal withholding (total): $22,000
Interest income: $2,400
Qualified dividends: $800
2 qualifying children (ages 8, 12)
Results
Line Expected Computed
Total income (Line 9) $160,200 $160,200 AGI (Line 11) $160,200 $160,200 Standard deduction $31,500 $31,500 Taxable income (Line 15) $128,700 $128,700 Child Tax Credit $4,400 $4,400 Total tax (Line 24) $16,654 $16,654 Refund $5,346 $5,346
3. Stock sales with wash sale adjustments
Inputs
Filing status: Single
W-2 wages: $110,000
Federal withholding: $18,000
Short-term gain (AAPL): $3,200
Long-term gain (MSFT): $8,500
Short-term loss (TSLA): −$5,000
Wash sale disallowed (TSLA repurchase within 30 days): $2,100
Results
Line Expected Computed
Net ST gain (after wash sale) $300 $300 Net LT gain $8,500 $8,500 Taxable income $103,050 $103,050 Tax (QDCG worksheet) $16,670 $16,670 Refund $1,330 $1,330
4. HSA contributions & distributions
Inputs
Filing status: Single
W-2 wages: $72,000
Federal withholding: $9,500
HDHP coverage: Self-only
Employer HSA contribution (W-2 Box 12 code W): $1,000
Personal HSA contribution: $3,300
HSA distributions (qualified medical): $1,800
Results
Line Expected Computed
HSA deduction $3,300 $3,300 AGI $68,700 $68,700 Taxable income $52,950 $52,950 Total tax $7,028 $7,028 Refund $2,472 $2,472
5. Itemized deductions (mortgage, charity, medical)
Inputs
Filing status: Married Filing Jointly
Combined W-2 wages: $200,000
Federal withholding: $32,000
Mortgage interest (1098): $18,000
State/local taxes (SALT): $15,000
Charitable cash donations: $8,000
Medical expenses: $22,000
Results
Line Expected Computed
Medical (7.5% floor) $7,000 $7,000 SALT (capped) $15,000 $15,000 Total itemized $48,000 $48,000 Taxable income $152,000 $152,000 Total tax $26,238 $26,238 Refund $5,762 $5,762
6. Rental income with depreciation
Inputs
Filing status: Single
W-2 wages: $80,000
Federal withholding: $12,000
Rental income: $18,000
Rental expenses: $8,000
Depreciation: $6,500
Active participation: Yes
Results
Line Expected Computed
Net rental income $3,500 $3,500 AGI $83,500 $83,500 Taxable income $67,750 $67,750 Total tax $10,426 $10,426 Refund $1,574 $1,574
7. AMT triggering scenario (ISO exercise)
Inputs
Filing status: Single
W-2 wages: $180,000
Federal withholding: $35,000
ISO exercise spread (FMV − strike): $150,000
SALT deduction claimed: $10,000
Results
Line Expected Computed
Regular taxable income $164,250 $164,250 Regular tax $32,086 $32,086 AMTI $324,250 $324,250 Tentative minimum tax $61,400 $61,400 AMT owed $29,314 $29,314 Amount owed $26,400 $26,400
8. EITC with qualifying children
Inputs
Filing status: Head of Household
W-2 wages: $28,000
Federal withholding: $2,100
2 qualifying children (ages 5, 9)
Investment income: $300
Results
Line Expected Computed
AGI $28,300 $28,300 Standard deduction (HoH) $23,625 $23,625 Child Tax Credit $4,400 $4,400 Earned Income Credit $6,164 $6,164 Total tax after credits $0 $0 Refund (incl. refundable credits) $8,264 $8,264
9. Education credits (AOTC + LLC)
Inputs
Filing status: Married Filing Jointly
Combined W-2 wages: $120,000
Federal withholding: $16,000
Student 1 (AOTC eligible, year 2): tuition $6,000
Student 2 (LLC eligible, grad school): tuition $8,000
Results
Line Expected Computed
AOTC (nonrefundable) $1,500 $1,500 AOTC (refundable, 40%) $1,000 $1,000 LLC (20% of $8,000) $1,600 $1,600 Total education credits $4,100 $4,100 Total tax $9,618 $9,618 Refund $6,382 $6,382
10. California state return (540)
Inputs
Filing status: Single
W-2 wages: $95,000 (CA source)
CA state withholding: $5,200
Federal AGI: $95,000
CA adjustments: None
Renter: Yes (CA Renter's Credit eligible)
Results
Line Expected Computed
CA taxable income $89,632 $89,632 CA tax $4,364 $4,364 Exemption credit $144 $144 Renter's credit $60 $60 Total CA tax $4,160 $4,160 CA Refund $1,040 $1,040
Want to run these scenarios yourself? Clone the repo and run the test suite.