Carl Conch and Mary Duval are married and file a joint return. They live at 1234 Mallory Sq. Apt. 64, Key West, FL 33040. Carl works for the Key Lime Pie Company and Mary is a homemaker after losing her job in 2013. Mary’s Social Security number is 633-65-7912 and Carl’s is 835-21-5423. Carl’s earnings and income tax withheld for 2014 are:
Earnings from Key Lime Pie Company ............. $67,000
Federal income tax withheld.................. 9,726
State income tax withheld.................. 0
Carl and Mary have interest income of $283 from a savings account at Coral Reef State Bank.
Carl owns stock in Southwest Airlines. Southwest paid Carl $125 in non-qualified dividends in 2014.
Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pursuant to their divorce decree, Mary pays Tom $525 per month in child support. All payments were made on time in 2014.
In June of 2014, Mary’s father gave her a cash gift of $75,000. Mary also received unemployment compensation of $2,600 during 2014. Mary won a $1,000 prize in a women’s club raffle in 2014. No income tax was withheld from the prize. The Key Lime Pie Company provides Carl with a company car to drive while he is working. The Company spent $6,475 to maintain this vehicle during 2014. Carl never uses the car for personal purposes.
Complete Carl and Mary’s federal tax return for 2014. Use Form 1040 on Pages 2-49 and 2-50. Make realistic assumptions about any missing data.

  • CreatedJuly 16, 2015
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