Kathy Kennedy (age 44) is a single taxpayer and she lives at 212 North Pine Way, Payson,

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Kathy Kennedy (age 44) is a single taxpayer and she lives at 212 North Pine Way, Payson, AZ 85541. Her Social Security number is 467-98-9784. Kathy's earnings and income tax withholding as the principal of the local high school for 2013 are:

Earnings..........................................................$55,000

Federal income tax withheld.....................................8,800

State income tax withheld.............................................700

Kathy's other income includes qualifying dividends on New Mexico Public Service stock of $4,000 and interest on a certificate of deposit at Payson National Bank of $275. In April 2013, Kathy paid $450 due on her 2012 Arizona state income tax. During the year, Kathy paid the following amounts (all of which can be substantiated):

Home mortgage interest........................................................$9,300

MasterCard interest.................................................................550

Life insurance (whole life policy) ................................................750

Property taxes on personal residence..........................................1,350

Blue Cross medical insurance premiums........................................250

Other medical expenses............................................................560

Income tax preparation fee........................................................300

Charitable contributions (in cash) ...............................................750

Kathy had one stock transaction in 2013. Kathy received the following Form 1099-B from her sale of Gold Company stock. All stock sales must be reported both to taxpayers and to the IRS on Form 1099-B so the proceeds can be matched by the IRS to each tax return. Kathy purchased the stock on August 31, 2012, for $42,800 before the stock plummeted in the last months of 2012.

Kathy Kennedy (age 44) is a single taxpayer and she
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Related Book For  answer-question

Income Tax Fundamentals 2014

ISBN: 9781285424545

32nd Edition

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

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