Answered step by step
Verified Expert Solution

Q: Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield, MO 63126. Ken is a full-time student at

Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield, MO 63126. Ken is a full-time student at Southwest Missouri State University (SMSU) and Bev works as an accountant at Cypress Corporation. Bev's
Social Security number is 465-74-3321 and Ken's is 465-57-9934. Bev's earnings and income tax withholdings for 2012 are:
Earnings from Cypress Corp.......................................$50,000
Federal income tax withheld..........................................5,500
State income tax withheld................................................675
The Hairs have interest income of $1,000 on City of St. Louis bonds. During 2012, Bev and Ken received the following 1099-INT and DIV:
Bev and Ken Hair have been married for 3 years.

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.
Ken also had a part-time job at SMSU. He was paid $2,525 on a W-2 for helping out in the Dean's office. There was no income tax withheld on the amount paid to Ken from this job.
Last year, Bev was laid off from her former job and was unemployed during January 2012. 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 2012, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife.
During 2012, Ken's aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the SMSU Credit Union account.
Required:
Complete the Hair's federal tax return for 2012. Use Form 1040A and the worksheet on pages 2-45 through 2-47. Make realistic assumptions about any missing data.

212 voD CORRECTED Boatman's Bank 00 City Avenue Springfield, MO 63126 2012 Interest Income 577 Fome 1099-INT Gopy A 465-57-9934 Federal Ken & Bev Hair 567 River Street rine, MO 63126 3Ba a Do Not Cut or Separate Forms on This PageDo Not Cut or Separate Forms on This PaRge 9191 CORRECTED MB No. 1848-011 900 South Orange Ave Springfield MD 63126 Dividends and Distributions 287 Fom 1099-DIY a Tow Copy A d Galectbie GInternal Revenue Service Center Fle with Form 1006 For Privacy Act and Paperwork Ken & Bev Hair Notice, see the 2012 General Instructions for Certain 3567 River Street MO 63126 12 8 13 fom 1099-DI Do Not Cut or Separate Forms on This PageDo Not Cut or Separate Forms on This Page Depanment of ury-Ieme

Step by Step Solution

3.49 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Link Copied!

Step: 1

The solutions presented here show 2012 tax calculations on 2011 forms and schedules which is given below Form 1040A Your first name and inital If a joint return spouses first name and initial Beo Depa... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get a step-by-step solution from a verified subject matter expert – not AI-generated answers

Step: 2Unlock detailed examples and clear explanations to master concepts

blur-text-image_2

Step: 3Unlock to practice, ask and learn with real-world examples

blur-text-image_3

Document Format ( 1 attachment)

Word file Icon

1124-B-A-I-T(2252).docx

120 KBs Word File

See step-by-step solutions with expert insights and AI powered tools for academic success

  • tick Icon Access 30 Million+ textbook solutions.
  • tick Icon Ask unlimited questions from AI Tutors.
  • tick Icon 24/7 Expert guidance tailored to your subject.
  • tick Icon Order free textbooks.

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books
flashcard-anime

Study Smart with AI Flashcards

Access a vast library of flashcards, create your own, and experience a game-changing transformation in how you learn and retain knowledge

Explore Flashcards

Students Have Also Explored These Related Accounting Questions!