Justin's wife, Jenna Washington, moved out in October 2016. Justin paid all the costs of...

  

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Justin's wife, Jenna Washington, moved out in October 2016. • Justin paid all the costs of keeping up the home. His daughter, Ava Reedley, did not work and provided less than 50% of her own support Justin has never taken a distribution from a retirement account and is not a student For the details of income items received, use the income forms provided. Make sure to determine whether each income item should be included in gross income and report all income items that should be reported. • In 2017, Ava was a sophomore at TS university, an eligible educational institution. She is pursuing a degree in Business. Ava used her savings to pay the $1,800 tuition not covered by her scholarship. Ava does not have a felony drug conviction. • Ava lived in a dorm on campus during the school year. Ava lived with Justin before she started attending college and during school breaks. The terms of Ava's scholarship state that it must be used to pay qualified tuition Justin wants to know if he has enough deductions to itemize. He gives you receipts and statements for the following items he would like to deduct: o Unreimbursed doctor bills for Justin for $300 o Unreimbursed prescription medicine for $1,400 o Over the counter vitamins for $150 o Health club dues for $500 o A statement received from his church (charity name: LOCAL CHURCH) showing cash donations of $1,500 on June 30th, 2017 o $100 given to a friend for the friend's medical bills o Form 1098 showing mortgage interest, mortgage insurance premiums and real estate tax he paid • Justin is repaying a student loan from his technical school education. The loan was for qualified education expenses at an eligible institution. • In addition to his regular job as a technician, Justin also teaches at the gym. He received Form 1099-MISC from the gym for all classes he taught during 2017 (self-employment income). Justin uses business code 812190. He has a written mileage log showing the following miles for 2017. All his travel is within his local commuting area. o 5,000 miles from home to his main job o 3,500 miles from his main job to the gym where he taught classes and met individual clients o 2,000 miles from the gym to his home o The total mileage on his car for 2017 was 20,000 miles. He placed his car in service on April 5, 2013. He always takes the standard mileage rate. This is his only car and it was available for personal use. • Justin has records for other expenses relating to his business as a personal trainer: o Advertising: $3,200 o Supplies: $800 o Business license: $200 Justin used the standard deduction on 2016 federal income tax return. He received a refund of $500 on his 2016 state tax return. Using his state's website, he confirmed that he received the refund on April 30, 2017. o 2016 tax return: Filing status: Married Filing Joint Line 40 of Form 1040 (2016): $12,600 State income tax (2016): $5,000 Sales tax (2016): $2,200 • In addition to the above, on September 17, 2017, Justin donated some Beta Trader, Inc. stock to Lakeville Community College (Address: 123 Main Street, Baltimore, MD 21250). Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $700 (comparable sales value). Justin had purchased the stock on November 7, 2003 for $300. The Receipt for this donation is available. • Justin and Ava were covered all year under a health care plan through Justin's employer. The employer paid the entire premium. Justin's wife, Jenna Washington, moved out in October 2016. • Justin paid all the costs of keeping up the home. His daughter, Ava Reedley, did not work and provided less than 50% of her own support Justin has never taken a distribution from a retirement account and is not a student For the details of income items received, use the income forms provided. Make sure to determine whether each income item should be included in gross income and report all income items that should be reported. • In 2017, Ava was a sophomore at TS university, an eligible educational institution. She is pursuing a degree in Business. Ava used her savings to pay the $1,800 tuition not covered by her scholarship. Ava does not have a felony drug conviction. • Ava lived in a dorm on campus during the school year. Ava lived with Justin before she started attending college and during school breaks. The terms of Ava's scholarship state that it must be used to pay qualified tuition Justin wants to know if he has enough deductions to itemize. He gives you receipts and statements for the following items he would like to deduct: o Unreimbursed doctor bills for Justin for $300 o Unreimbursed prescription medicine for $1,400 o Over the counter vitamins for $150 o Health club dues for $500 o A statement received from his church (charity name: LOCAL CHURCH) showing cash donations of $1,500 on June 30th, 2017 o $100 given to a friend for the friend's medical bills o Form 1098 showing mortgage interest, mortgage insurance premiums and real estate tax he paid • Justin is repaying a student loan from his technical school education. The loan was for qualified education expenses at an eligible institution. • In addition to his regular job as a technician, Justin also teaches at the gym. He received Form 1099-MISC from the gym for all classes he taught during 2017 (self-employment income). Justin uses business code 812190. He has a written mileage log showing the following miles for 2017. All his travel is within his local commuting area. o 5,000 miles from home to his main job o 3,500 miles from his main job to the gym where he taught classes and met individual clients o 2,000 miles from the gym to his home o The total mileage on his car for 2017 was 20,000 miles. He placed his car in service on April 5, 2013. He always takes the standard mileage rate. This is his only car and it was available for personal use. • Justin has records for other expenses relating to his business as a personal trainer: o Advertising: $3,200 o Supplies: $800 o Business license: $200 Justin used the standard deduction on 2016 federal income tax return. He received a refund of $500 on his 2016 state tax return. Using his state's website, he confirmed that he received the refund on April 30, 2017. o 2016 tax return: Filing status: Married Filing Joint Line 40 of Form 1040 (2016): $12,600 State income tax (2016): $5,000 Sales tax (2016): $2,200 • In addition to the above, on September 17, 2017, Justin donated some Beta Trader, Inc. stock to Lakeville Community College (Address: 123 Main Street, Baltimore, MD 21250). Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $700 (comparable sales value). Justin had purchased the stock on November 7, 2003 for $300. The Receipt for this donation is available. • Justin and Ava were covered all year under a health care plan through Justin's employer. The employer paid the entire premium.

Answer rating: 100% (QA)

1 Justins gross income for 2017 is 12600 2 Justins deductions for 2017 are Unreimbursed doctor bills ... View the full answer