Question

Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield, MO 63126. Ken is a full-time student at Southwest Missouri State University (SMSU) and Bev works as an accountant at Cypress Corporation. Bev’s Social Security number is 465-74-3321 and Ken’s is 465-57-9934. Bev’s earnings and income tax withholdings for 2014 are:
Earnings from Cypress Corp............. $50,000
Federal income tax with held............ 5,500
State income tax with held............. 675
The Hairs have interest income of $1,000 on City of St. Louis bonds. During 2014, Bev and Ken received the following 1099-INT and DIV:
Ken is an excellent student at SMSU. He was given a $1,750 scholarship by the university to help pay educational expenses. The scholarship funds were used by
Ken for tuition and books. Ken also had a part-time job at SMSU. He was paid $2,525 on a W-2 for helping out in the Dean’s office. There was no income tax withheld on the amount paid to Ken from this job.
Last year, Bev was laid off from her former job and was unemployed during January 2014. She was paid $1,825 of unemployment compensation until she started work with her current employer, Cypress Corporation.
Ken has a 4-year-old son, Robert R. Hair, from a prior marriage. During 2014, he paid his ex wife $300 per month in child support. Robert is claimed as a dependent by Ken’s ex-wife.
During 2014, Ken’s aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the SMSU Credit Union account.
Required:
Complete the Hair’s federal tax return for 2014. Use Form 1040A and the worksheet on Pages 2 45 through 2-47. Make realistic assumptions about any missing data.


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  • CreatedJuly 16, 2015
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