Robert Ramos (age 36) is a single taxpayer, living at 8765 Bay Dr., Monterey, CA 93940. His Social Security number is 976-23-5132. Robert’s earnings and income tax withholding as the manager of a local supermarket store for 2014 are:

Earnings…………………………………………..             $68,000

Federal income tax withheld……………………..    14,800

State income tax withheld………………………..        2,300

Robert’s other income includes qualifying dividends on Arizona Public Service stock of $3,600 and interest on a long-term certificate of deposits at Bank of America of $5,885. 

During the year, Robert paid the following amounts (all of which can be substantiated): 

Home mortgage interest………………………        $10,500

Credit card interest………………………………..              550

Auto loan interest………………………………….           1,700

Life insurance (universal policy) ………………….       750

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

Blue Cross medical insurance premiums………    650

Other medical expenses…………………………….       790

Income tax preparation fee…………………………      250

Charitable contributions (in cash)…………………..  550

In his spare time, Robert trades stocks and bonds. During the year, he sold several stocks and received a Form 1099-B, which showed the following:

Required:
Complete Robert's federal tax return for 2014. Use Form 1040, Schedule A, Schedule B, Schedule D, Form 8949, and the Qualified Dividends and Capital Gain Tax Worksheet on Pages 8-57 to 8-65 to complete this tax return. Make realistic assumptions about any missing data.

Transcribed Image Text:

Stock Red Co Green Co. Blue Co White Co Black Co Acquired 02/01/04 06/11/14 03/12/14 05/12/03 09/15/03 Sold 10/05/14 08/03/14 09/22/14 10/15/14 11/01/14 Price $6,000 4,000 6,000 8,000 6,000 $2,500 4,500 5,200 5,000 7,000