Richard McCarthy (born 2/14/1965; Social Security number 100-10-9090) and Christine McCarthy (borm 6/1/1967; Social security number...
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Richard McCarthy (born 2/14/1965; Social Security number 100-10-9090) and Christine McCarthy (borm 6/1/1967; Social security number 101-21- 3434) have a 19-year-old son (born 10/2/2000 Social Security number 555-55-1212). Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Security number 444-23-1212). Justine, that lives with them. The McCarthys can daim a $2,000 child tax credit for Justine and a $500 other dependent credit for Jack. Richard is the CEO at a paper company. His Form W-2 is provided. Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Gross sales $270,541 Returns 8,994 Inventory: Beginning inventory $24,000 Purchases 120,000 Ending inventory 30,000 24,000 Rent 11.019 Insurance 2,998 Protessional fees 37,113 Payroll 2,077 Payroll taxs The McCarthys have a nanny/housekeeper they paid $12,600 during 2019. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $378 in 2019. Christine received a 2019 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,467. Note that McCarthys reasonably allocate $761 to state income tax expense for purposes of the Net Investment Income tax. The McCarthys received a Form 1099-G from Pennsylvania that reported a $451 state income tax refund from 2018. The McCarthys itemized deductions in 2018 and had $14,223 of state income tax expense that was limited to $10,000. The McCarthys paid the following in 2019: Home mortgage interest $15,661 Property taxes 5,436 Estimated state income tax payments 2,400 Estimated Federal income tax payments 10,500 7,600 Charitable contributions (all cash) Required: Complete the McCarthys' federal tax return for 2019. Use Form 1040, Schedule 1. Schedule 2. Schedule 3, Schedule A Schedule B, Schedule C. Schedule H, Schedule SE, Form 8959, and Form 8960 to complete this tax return. Ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation. • Make realistic assumptions about any missing data. • The taxpayers had health insurance coverage for the entire year and do not want to contribute to the presidential election campalgn. • Enter all amounts as positive numbers. • If an amount box does not require an entry or the answer is zero, enter "0". • If required, round any dollar amount to the nearest dollar. Richard McCarthy (born 2/14/1965; Social Security number 100-10-9090) and Christine McCarthy (borm 6/1/1967; Social security number 101-21- 3434) have a 19-year-old son (born 10/2/2000 Social Security number 555-55-1212). Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter (Social Security number 444-23-1212). Justine, that lives with them. The McCarthys can daim a $2,000 child tax credit for Justine and a $500 other dependent credit for Jack. Richard is the CEO at a paper company. His Form W-2 is provided. Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Gross sales $270,541 Returns 8,994 Inventory: Beginning inventory $24,000 Purchases 120,000 Ending inventory 30,000 24,000 Rent 11.019 Insurance 2,998 Protessional fees 37,113 Payroll 2,077 Payroll taxs The McCarthys have a nanny/housekeeper they paid $12,600 during 2019. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $378 in 2019. Christine received a 2019 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,467. Note that McCarthys reasonably allocate $761 to state income tax expense for purposes of the Net Investment Income tax. The McCarthys received a Form 1099-G from Pennsylvania that reported a $451 state income tax refund from 2018. The McCarthys itemized deductions in 2018 and had $14,223 of state income tax expense that was limited to $10,000. The McCarthys paid the following in 2019: Home mortgage interest $15,661 Property taxes 5,436 Estimated state income tax payments 2,400 Estimated Federal income tax payments 10,500 7,600 Charitable contributions (all cash) Required: Complete the McCarthys' federal tax return for 2019. Use Form 1040, Schedule 1. Schedule 2. Schedule 3, Schedule A Schedule B, Schedule C. Schedule H, Schedule SE, Form 8959, and Form 8960 to complete this tax return. Ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation. • Make realistic assumptions about any missing data. • The taxpayers had health insurance coverage for the entire year and do not want to contribute to the presidential election campalgn. • Enter all amounts as positive numbers. • If an amount box does not require an entry or the answer is zero, enter "0". • If required, round any dollar amount to the nearest dollar.
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Find below the Computation of Total Income of Mr Richard McCarthy Computation of Total income of MrRichard McCarthy DOB 14021965 Social Security No 10... View the full answer
Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th edition
Authors: Gerald E. Whittenburg, Steven Gill
Posted Date:
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