Bea Jones (age 32) moved from Texas to Florida in December 2011. She lives at 654 Ocean Way, Gulfport, FL 33707. Bea's Social Security number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2012 for her job as a manager at a Florida shrimp-processing plant are:
Earnings from the Gulf Shrimp Co. $42,000
Federal income tax withheld 7,800
State income tax withheld 0
Bea's other income includes interest on a savings account at Beach National Bank of $2,200 and $600 per month alimony from her ex-husband.
During 2012, Bea paid the following amounts (all of which can be substantiated):
Home mortgage interest................................................................$9,700
Auto loan interest........................................................................................2,300
Property taxes on personal residence...................................................3,200
State and local sales taxes actually paid during 2012.................................1,500
Unreimbursed hospital bills.........................................................................3,200
Doctor bills..................................................................................................2,550
Other medical expenses .....................................................................................720
Income tax preparation fee..................................................................................600
Job-hunting expenses...........................................................................................925
Union dues .........................................................................................................800
In July 2012, someone broke into Bea's house and stole a diamond ring. The diamond ring had a fair market value of $10,000 and a tax basis to Bea of $7,600.
The ring was uninsured.
Required:
Complete Bea's federal tax return for 2012. Use Form 1040, Schedule A, Schedule B, and Form 4684, from pages 5-53 through 5-57 to complete this tax return. Make realistic assumptions about any missing data.