Question

Dr. Carol Harris, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local college. Carol’s earnings and withholding from the college for 2014 are:
Earnings............ $54,000
Federal income tax withheld.... 8,800
State income tax withheld...... 2,500
FICA tax of $3,348 and Medicare tax of $783 were also withheld from Carol’s earnings. Carol’s other income includes interest of $145 from a savings account at New England Bank and $450 of qualified dividends from Microsoft.
During the year, Carol paid the following amounts (all of which can be substantiated):
Home mortgage interest.......... $6,300
Visa card interest.............. 350
Auto insurance............... 750
Property taxes on personal residence...... 2,650
Other medical expenses............ 810
Charitable contributions (in cash)....... 1,000
Carol had the following stock market transactions, all of which were reported on Form 1099-B, along with the basis of the stock sold:
In addition to being a professor at the local college, Carol maintains a CPA practice. Income and expenses from this activity are:
Fees from CPA practice (all paid by check)......... $38,800
Office rent...................... 3,600
Supplies....................... 750
Computer tax service.................. 1,200
Mileage (4,107 miles).................. 2,300
Client meals and entertainment............... 2,740
Telephone....................... 975
Other expenses...................... 1,400
Carol drove her car (placed in service on January 1, 2012) 20,000 miles in total, of which 5,000 miles were for commuting. Carol made 2014 estimated tax payments to the U.S. Treasury of $3,000 for each quarter.
Required:
Complete Carol’s federal tax return for 2014. Use Form 1040, Schedule A, Schedule C, Schedule D, Form 8949, Schedule SE, and the worksheet on Pages 9-49 through 9-61 to complete this tax return. Make realistic assumptions about any missing data.


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  • CreatedJuly 16, 2015
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