Bev and Ken Hair have been married for 3 years. Both taxpayers are under age 65. Ken is a full-time student at Southwest Missouri State University (SMSU) and Bev works as an accountant at Cypress Corporation. Ken's is 465-57-9934. Ken’s birthdate is January 12, 1991 and Bev’s birthdate is November 4, 1993. Bev and Ken each received a W-2 form from Cypress Corporation.

The Hairs have interest income of $1,000 on City of St. Louis bonds. Bev and Ken received a Form 1099-INT from Boatman's Bank and a 1099-DIV form from green Corporation.

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.

Last year, Bev was laid off from her former job and was unemployed during January 2017. 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 2017, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife.

During 2017, Ken's aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the Boatman’s Bank savings account.

Required:
Complete the Hair's Form 1040A and the Qualified Dividends and Capital Gain Tax Worksheet. Make realistic assumptions about any missing data. If an amount box does not require an entry or if an amount is zero, enter "0". Enter amounts as positive numbers. If required, round amounts to the nearest dollar. (THIS IS FOR YEAR 2017 ONLY/NOT OTHER YEARS SUCH AS 2014,2015, OR 2016)

BEV HAIR WAGES TIPS & COMPENSATION=50,500

FEDERAL TAX INCOME WITHELD=5,005

SOCIAL SECURITY TAX WITHELD=3,131

MEDICARE TAX WITHELD=732.25

STATE INCOME TAX=680

KEN HAIRS WAGES, TIPS & COMPENSATION=2,620

SOCIAL SECURITY TAX=162.44

MEDICARE TAX=37.99

BEV'S & KENS 1099-INT &1099-DIV

INTEREST INCOME=645.07

TOTAL ORDINARY DIVIDENDS=302

QUALIFIED DIVIDENDS=302

Answer rating: 100% (QA)

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