John Williams (age 42) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV

Question:

John Williams (age 42) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is 555-94-9358. John's earnings and withholdings as the manager of a local casino for 2012 are:
Earnings from the Lucky Ace Casino............................$195,000
Federal income tax withheld..........................................32,000
State income tax withheld.......................................................0
John's other income includes interest on a savings account at Nevada National Bank of $13,075.
John pays his ex-wife $4,000 per month. When their 12-year-old child (in the wife's custody) reaches 18, the payments are reduced to $2,800 per month. His exwife's Social Security number is 554-44-5555.
During the year, John paid the following amounts (all of which can be substantiated):
Credit card interest.......................................................................1,760
Auto loan interest........................................................................4,300
Auto insurance..............................................................................900
Property taxes on personal residence...................................................6,200
State and local sales taxes actually paid during 2012.................................4,000
Blue Cross health insurance premiums.......................................................1,800
Other medical expenses.................................................................................790
Income tax preparation fee..............................................................................900
Charitable contributions:
Boy Scouts.......................................................................................................800
St. Matthews Church...........................................................................................300
U. of Nevada (Reno) Medical School...............................................................30,000
Nevada Democratic Party......................................................................................250
Fund-raising dinner for the Reno Auto Museum
(value of dinner is $50) ...................................................................100
John also received the following Form 1098:
John Williams (age 42) is a single taxpayer, and he

Required:
Complete John's federal tax return for 2012. Use Form 1040, Schedule A, and Schedule B, from pages 5-49 through 5-52 to complete this tax return. Make realistic assumptions about any missing data.

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Related Book For  answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

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

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