1. The following additional information is available for the family of Albert and Allison Gaytor. In 2018,...

Question:

1. The following additional information is available for the family of Albert and Allison Gaytor.

In 2018, Albert received a Form W-2 from his employer, Coconut Grove Fishing Charters, Inc. (hint: slightly modified from Chapter 1):

a Employee'S 3Ocial security number 266-51-1966 Safe, accurate, FASTI Use Visit the IRS webeite at dnse+file www.irs.govlefile OMB No. 1545-0008 b Employer identification number (EIINJ 60-3456789 Wages, tips, other compensabon 66,850.00 3 Social security wages 66,850.00 2 Federal income tax withheld 5,780.00 c Employer's name, address, and ZIP code 4


In addition to the interest from Chapter 1, Albert and Allison also received three Forms 1099:

The Gaytors also received interest of $745 from bonds issued by the Miami-Dade County Airport Authority (Form 1099 not shown).

Albert went to the casino on his birthday and won big, as reflected on the following Form W-2G:


Albert had no other gambling income or losses for the year.

In February, Allison received $50,000 in life insurance proceeds from the death of her friend, Sharon.

In July, Albert’s uncle Ivan died and left him real estate (undeveloped land) worth $72,000.

Five years ago, Albert and Allison divorced. Albert married Iris, but the marriage did not work out and they divorced a year later. Under the 2014 divorce decree, Albert pays Iris $11,500 per year in alimony. All payments were on time in 2018 and Iris’ Social Security number is 667-34-9224. Three years ago, Albert and Allison were remarried.

Coconut Fishing Charters, Inc. pays Albert’s captain’s license fees and membership dues to the Charter Fisherman’s Association. During 2018, Coconut Fishing paid $1,300 for such dues and fees for Albert.

Allison was laid off from her job on January 2, 2018. She received a Form 1099-G for unemployment benefits:


Albert and his family are covered by an employee-sponsored health plan at his work.

Coconut Fishing pays $700 per month in premiums for Albert and his family. During the year, Allison was in the hospital for appendix surgery. The bill for the surgery was $10,100 of which the health insurance reimbursed Albert the full $10,100.

Coconut Fishing also pays for Albert’s parking at the marina. The monthly cost is $120.


Required:

Combine this new information about the Gaytor family with the information from Chapter 1 and complete a revised 2018 tax return for Albert and Allison. Be sure to save your data input files since this case will be expanded with more tax information in later chapters.

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Related Book For  book-img-for-question

Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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