Steve Jackson (age 51) is a single taxpayer living at 3215 Pacific Dr., Del Mar, CA 92014.
Question:
Earnings from the Ocean View Hotel .......................................$120,000
Federal income tax withheld......................................................18,500
State income tax withheld..........................................................9,000
Steve's other income includes interest from General Electric bonds of $2,500 and interest on a savings account at Wells Fargo Bank of $3,190. Also, Steve received tax-exempt interest of $29,200 on private activity bonds that is subject to alternative minimum tax.
During the year, Steve paid the following amounts (all of which can be substantiated):
Home mortgage interest..............................................................$31,700
Credit card interest......................................................................1,760
Auto insurance..............................................................................900
State income taxes paid in 2013 (for 2011 audit) ..................................12,540
Property taxes on personal residence......................................................6,200
Kaiser HMO premiums..................................................................4,800
Other medical expenses.............................................................................790
CPA fees paid to handle 2011 state audit...........................................7,000
Charitable contributions:
Girl Scouts..................................................................................800
San Diego State University (contribution) .........................................10,000
Italian Red Cross.........................................................................250
Required:
Complete Steve's federal tax return for 2013. Use Form 1040, Schedule A, Schedule B, and Form 6251, on Pages 6-53 through 6-58. Make realistic assumptions about any missing data.
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1040 For the year Jan 1Dec 31 2013 or other fax year beginning Your first name and initial a joint return spouses first name and initial Foreign country name Filing Status Chock only one box Exemptions Department of the Treasury Intex Revenue US Individual Income Tax Retum 2013 OMB No 15450074 IPS Use OnlyDo not write or staple in this space 2013 ndng 20 See separate instructions Your social security number 465889415 Spouses secial security number If more than four dependents soo instructions and check here Income Attach Forms W2 hete Alou attach Forms W2G and 1099R if tax was withheld Home addressnumber and street If you have a P5 box see instructions 3215 Pacific Drive Oity town or post office state and ZIP code If you have a fowigh address also completo spaces boow sao instructions Del Mar CA 92014 If you did not got a W2 see instructions Adjusted Gross Income 1 2 3 60 b Spouse c Dependents 1 Fe 10 11 12 13 14 Last name Jackson 287 28888 Last name Single Marriod aling jointly faven if only one had income Married Sling separately Enter spouses SSN above and full name here Lad mind 15 16a 17 18 19 Unemployment compensation Foreign provincestatecounty Yourself If someone can claim you as a dependent do not check box a 2 panders social security anbe 20a Social security bonafts 20a d Total number of comptions claimed 7 Wagos salarios tips etc Attach Formis W2 Ba Taxable interest Attach Schedule B if required b Taxexempt interest Do not include on line Be 9a Ordinary dividends Attach Schedule 3 if required b Qualified dividends Taxable refunds credits or offsets of state and local income taxes Alimony received Business income or loss Attach Schedule Cor CEZ Capital gain or ass Attach Schedule D if required If not required check here Other gains or losses Attach Form 4797 HA distributions 15A AS 31Dependas relationship to you 31a Alimony paid b Recipients SSN RA deduction Student Ioan interest deduction Tuition and fees Attach Form 8917 Cortain business expenses of reservists performing artists and foebasis government officials Attach Form 2106 or 2106EZ Health savings account deduction Altach Form 8880 Moving expensos Attach Form 3003 Leductible part of selfemployment tax Atach Schedule St Selfemployed SEP SIMPLE and qualified plans Solfemployed health insuranco doduction Penalty on early withdrawal of savings 80 Heed of household with qual tying person See instructions it the qualifying person is a child but not your dependent enter this childs name here Qualifying widowe with dependent child Pensions and annuities 16a Rental real estate royalties partnerships S corporations trusts etc Attach Schedule E Ferm income or fass Attach Schedule F Presidential Election Campaign Chark hans fyra e your ope it fing jointly want 3 to go to this Chang Foreign postal code bax below will not change your tax or und You Spouse b Taxable amount Other income List type and amount a Combine the amounts in the far right column for lines 7 through 21 This is your tota income Educator expenses 23 24 25 26 2 28 29 Apt 10 Taxable amount b Taxable amount 30 31a 32 33 34 35 4 child under age 17 quying for child tax cred e instructions 34 35 Domestic production activities deduction Attach Form 8903 Ackl lines 23 through 35 36 37 Subtract line 36 from line 22 This is your adjusted gross income For Disclosure Privacy Act and Paperwork Reduction Act Notice see separate instructions 29200 7 Ba 98 10 12 13 14 156 16b 17 18 19 20b Make sure the SSDs above and on line 8c are correct 21 22 36 37 Get No 110200 Boxes checked on 62 and 60 No of children on Go who lived with you did not live with you due to divorce or separation see instructions Dependents on not emared above Add numbers on linee above 120000 5690 125690 Form 1040 2013 Form 1040 2013 Tax and Credits Standard Daduction for People who check any box on Ine 39a or 39b or who can be claimed dependent 500 in structions All other Other Tuxus 38 39a single or Mained ing separately 5100 Manied fling intly or Quallying widower 2200 Head of household 54 8950 55 42 43 Sign Here Jant retum See Keep a copy for your records You were bom before January 2 1949 if Spouse was born before January 2 1940 40 b If your spouse itemizes on a separate retum or you were a dualstatus alien check here 39b Itemized deductions from Scheckule A or your standard deduction see left margin Subtract line 40 from line 38 41 44 45 46 47 Paid Preparer Use Only 48 49 50 31 52 53 56 57 58 60 61 Payments 62 03 64a 50a b If you have a qualifying child attach Schedule EIC 65 b 66 67 68 60 70 Steve Jackson Amount from line 37 adjusted gross income Check 71 72 Exemptions fine 38 is 150000 or less multiply 3900 by the number on line 6d Otherwise see instructions Taxable income Subtract line 42 from line 41 If line 42 is more than line 41 enler 0 Form 4972 Tax see instructional Check it and from a Formisi 8814 b Alternative minimum tax see instructions Attach Form 6251 Acid lines 44 and 45 Foreign tax credit Attach Form 1116 if required 40 Credit for child and dependent care expenses Attach Form 2441 Education credits from Form 8863 Ine 19 49 Retirement savings ntributions credit Attach Form 8880 50 26 Od tax cr Anach schedulo 8812 if required Residential energy crodits Attach Form 5695 Other credits from Form a3800 b 8801 Bind Total boxes Blind hused 30 Earned income credit EIC Nontaxable combat pay election 64b Additional child tax credit Attach Schedule 8812 American opportunity credit from Form 8863 lino 8 Reserved Add lines 47 through 53 These are your total credits Subtract line 54 from line 46 If line 54 is more than line 40 enter0 Selfemployment Lax Attach Schedule SE Amount paid with request for extension to file Excess social security and tior 1 RRTA 1x withhold Uneortod social security and Medicare tax from Forma4137 Additional tax on IRPAS other qualified rotiroment plans etc Utach Form 5329 if required Household employment taxes from Schedule H Firsttime homebuyer credit repayment Attach Form 5405 if required Taxos from a Form 8959bForm 8960 Add lines 55 through 60 This is your total tax Federal income tax withheld from Forms W2 and 1099 2013 osumated tax payments and amount applied from 2012 return 47 51 52 53 Spouses signature If a joint return both must sign Date PrirtType preparers name Firms name Firms address 65 66 67 68 60 Credit for federal tax on fuels Attach Form 4136 70 Credits from Forma2439 boord e8885 d 71 Add lines 62 63 64a and 65 through 71 These are your total payments Proparers signature FIL b2919 Instructions onilor cocos 62 03 640 18500 72 Refund 73 74a If line 72 is more than line 61 subtract line 61 from line 72 This is the amount you overpaid 73 74a Amount of line 73 you want refunded to you If Form 8888 is attached check here Direct deposit D Flouting number Type Cheong d Account number See instructions 75 Amount of line 73 you want applied to your 2014 estimated tax 75 Amount 76 Amount you owe Subtract line 72 from line 61 For details on how to pay see instructions 76 You Owe 77 Estimated tax penalty o instructions 77 Third Party Do you want to allow another person to discuss this roturn with the IRS soo instructions Designee Ce Your occupation 465889475 38 Hotel Manager Spouses occupation Date savings 40 41 42 43 Firms BN Phone no 44 45 46 54 55 56 58 50a 50b 60 61 Perefoon number PIN 125690 Deans name Uncorporation of perjury I doolare that I have axamined this retum and accompanying schedules and statements and to the best of my knowledge and belie they are true correct and complete Declaration of preparer other than taxpayer is based on all information of which preparer has any knowledge Your signature Date Daytime phone number 74726 3900 47064 7698 8029 15727 15727 Check it selfemployed 15727 Yes Complito below 18500 2773 2773 Page 2 No the RS sert you anty Protection PIN here e int FTIN Form 104001 SCHEDULE A Form 1040 Department of the Treasury Internal Revenice Name shown on Form 1040 Steve Jackson Medical and Dental Expenses Taxes You Paid Interest You Paid Note Your mortgag interest deduction may bo limited soo instructions 1 2 a Income taxes or b General sales taxes August Real estate taxes instructions Parasnal property ta 8 Other taxes List type and amount Other Miscellaneous Deductions Total Itemized Deductions Itemized Deductions Information about Schedule A and its separate instructions is at wwwirsgovschedulea Attach to Form 1040 Caution Do not include expenses reimbursed or paid by others Medical and dental expenses see instructions Enter amount from Form 1040 line 38 2 125690 3 Multiply line 2 by 10 10 But if either you or your spouse was born before January 2 1949 multiply line 2 by 75 075 instead 3 4 Subtract line 3 from line 1 If line 3 is more than line 1 enter 0 5 State and local check only one box 12 5590 TALIF 12569 27 27 2013 9 Add lines 5 through 8 10 Home mortgage interest and points reported to you on Form 1098 10 11 Home mortgage interest not reported to you on Form 1098 If paid to the person from whom you bought the home see instructions and show that persons name identifying no and address Gifts to Charity If you made a gift and got a benefit by it 18 Carvover from prior year see instructions 19 Add lines 16 through 18 Casualty and Theft Losses 20 Casualty or theft losses Attach Form 4684 See instructions Job Expenses 21 Unreimbursed employee expensesjob travel union dues and Certain job education etc Attach Form 2106 or 2106EZ if required See instructions Miscellaneous Deductions 22 Tax preparation fees 16 Gifts by cash or check If you made any gift of 250 or more see instructions 11 Points not reported to you on Form 1098 See instructions for special rules 17 Other than by cash or check If any gift of 250 or more see instructions You must attach Form 8283 if over 500 5 12 13 Mortgage insurance premiums see instructions 13 14 Investment interest Attach Form 4952 if required See instructions 14 15 Add lines 10 through 14 23 Other expensesinvestment safe deposit box etc List type and amount CPA Fees State Audit 6 7 8 29 Is Form 1040 line 38 over 15 000 31700 FILE 16 17 18 22 23 24 24 Add lines 21 through 23 25 Enter amount from Form 1040 line 38 25 125690 26 Multiply line 25 hy 24 2 26 27 Subtract line 26 from line 24 If line 26 is more than line 24 enter 0 28 Otherfrom list in instructions List type and amount Yes Your deduction may be limited See the Itemnized Deductions Worksheet in the instructions to figure the amount to enter OMB No 15450074 2013 Attachment Raran 07 Your social security number 465 88 9415 10800 No Your deduction is not limited Add the amounts in the far right column for lines 4 through 28 Also enter this amount on Form 1040 line 40 7000 7000 2514 Cat No 171450 30 If you elect to itemize deductions even though they are less than your standard deduction check here For Paperwork Reduction Act Notice see Form 1040 instructions 9 15 19 27 28 27740 29 31700 10800 4486 74726 Schedule A Form 1340 2013 SCHEDULE B Form 1040A or 1040 OMB No 15450074 2013 Attachment Sequence No 08 Your social security number 9415 Amount 465 mortgage and the 1 List name of payer If any interest is from a sellerfinanced buyer used the property as a personal residence see instructions on back and list this interest first Also show that buyers social security umber and address General Electric Bonds DRATTAS OF 5 2013 Interest and Ordinary Dividends Attach to Form 1040A or 1040 Internal Revenue Service 199Information about Schedule B Form 1040A or 1040 and its instructions is at wwwirsgovscheduleb Department of the Treasury Name shown on return Part I Interest See instructions on back and the instructions for Form 1040A or Form 1040 line 88 Note If you received a Form 1090INT Form 1080OID or substitute statement from a brokerage firm ist he DO NOT EILE Add the amounts on line Excludable interest on series EE and US savings bonds issued after 1989 Attach Form 8815 name as the payer and enter the total interest shown on that form Part II Ordinary Dividends See instructions on back and the instructions for Form 1010A or Form 1040 line Ba Steve Jackcom Note If you received a Form 1000DIV or substituto statement from a brokerage firm ist he e firms name as the payer and enter the ordinary dividends shown on that form Part III Foreign Accounts and Trusts See instructions on back 4 Subtract line 3 from line 2 Enter the result here and on Form 1040A or Form 1040 line 8a Note If line 4 is over 1500 you must complete Part III 5 List name of payer 6 Add the amounts on line 5 Enter the total here and on Form 1040A or Form 1040 line 9a 4 6 For Paperwork Reduction Act Notice see your tax return instructions Note If line 6 is over 1500 you must complete Part III You must complete this part if you a had over 1500 of taxable interest or ordinary dividends h had a foreign account or c received a distribution from or were a grantor of or a transferorto a foreign trust 7a At any time during 2013 did you have a financial interest in or signature authority over a financial account such as a bank account securities account or brokerage account located in a foreign country See instructions If Yes are you required to file FinCEN Form 114 Report of Foreign Bank and Financial Accounts FBAR formerly TD F 90221 to report that financial interest or signature authority See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements b If you are required to file FinCEN Form 114 enter the name of the foreign country where the financial account is located 8 During 2013 did you receive a distribution from or were you the grantor of or transferor to a foreign trust If Yes you may have to file Form 3520 See instructions on back Cat No 1714 N 2500 5690 5690 Amount Yes No Schedule B Form 1040A or 1040 2013 Form 6251 Department of the Treasury Internal Revenue Service 95 Alternative Minimum TaxIndividuals Information about Form 6251 and its separate instructions is at wwwirsgovform6251 Attach to Form 1040 or Form 1040NR Name shown on Form 1040 or Form 1040NR Steve Jackson Part I Alternative Minimum Taxable Income See instructions for how to complete each line 1 If 1ling Schedule A Form 1040 enter the amount from Form 1040 line 41 and go to line 2 Otherwise enter the amount from Form 1040 line 38 and go to line 7 If less than zero enter as a negative amount 2 Medical and dental If you or your spouse was 65 or older enter the smaller of Schedule A Form 1040 line 4 or 25 025 of Form 1040 line 38 If zero or less enter 0 3 Taxes from Schedule A Form 1040 line 9 4 Enter the home mortgage interest adjustment if any from line 6 of the worksheet in the instructions for this line 5 Miscellaneous deductions from Schedule A Form 1040 line 27 e11 ember 6 It Form 1040 line 36 is 150000 or less instructions 7 Tax refund from Form 1040 line 10 or line 21 Investment interest expense difference between regular tax and AMT 9 Depletion difference between regular tax and AMT 10 Net operating loss deduction from Form 1040 Ine 21 Enter as a positive amount 11 Anternative tax net operating loss deduction ENQ 12 Interest from specified private activity bonds exempt from the regular tax 13 Qualified small business stock 7 of gain excluded under section 1202 14 Exercise of incentive stock options excess of AMT income over regular tax income 15 Estates and trusts amount from Schedule K1 Form 1041 box 12 code 16 Electing large partnerships amount fram Schedule K1 Form 1065B box 6 17 Disposition of property difference between AMT and regular tax gain or loss 18 Depreciation on assets placed in service after 1986 difference between regular tax and AMT 19 Passive activities difference between AMT and regular tax income or loss 20 Loss limitations difference between AMT and regular tax income or loss 21 Caculation costs difference between regular tax and AMT 22 Longterm contracts difference between AMT and regular tax income 23 Mining costs difference between regular tax and AMT IF your filing status is Single or head of household Married filing jointly or qualifying widowfor Married filling separately 24 Research and experimental costs difference between regular tax and AMT 25 Income from certain installment sales before January 1 1987 26 Intangible drilling costs preference 27 Other adjustments including incomebased related adjustments 28 Alternative minimum taxable income Combine lines through 27 If married ting separately and line 28 is more than 238550 see instructions Part II Alternative Minimum Tax AMT 29 Exemption ...View the full answer
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Related Book For 
Income Tax Fundamentals 2014
ISBN: 9781285424545
32nd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
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