Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield,

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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 andincome tax withholdings for 2013 are:
Earnings from Cypress Corp............................................. $50,000
Federal income tax withheld.................................................5,500
State income tax withheld......................................................675
The Hairs have interest income of $1,000 on City of St. Louis bonds. During 2013, Bev and Ken received the following 1099-INT and DIV:
Bev and Ken Hair have been married for 3 years.
Bev and Ken Hair have been married for 3 years.

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 2013. 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 2013, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife. During 2013, 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 2013. Use Form 1040A and the worksheet on Pages 2-45 through 2-47. Make realistic assumptions about any missing data.

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Related Book For  answer-question

Income Tax Fundamentals 2014

ISBN: 9781285424545

32nd Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

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