Complete the federal tax return below for the current tax year listed above. Use, Schedule A, and
Question:
Complete the federal tax return below for the current tax year listed above. Use, Schedule A, and Schedule B to complete this return
Jim Wallace (age 40) is a single taxpayer, and he lives at 1234 Hallmark Way, Warner Robins, GA 31088. His Social Security number is 555-94-9358. Jim’s earnings and withholdings as a manager of Best Buy for 2016 are:
Earnings from Best Buy $150,000
Federal Income Tax $24,000
State income tax withheld $0
Jim’s other income includes interest on a savings account at Robins Federal Credit Union for $10,075.
Jim also received a Form 1098 Mortgage Interest Statement from Wells Fargo showing mortgage interest paid on his house in the amount of $20,000 for 2016.
Jim pays his ex-wife $3,000 per month. When their 12-year old child (in the wife’s custody) reaches 18, the payments reduce to $1,500 per month. His ex-wife’s Social Security number is 554-44-5555.
During the year, Jim paid the following amounts:
Credit card interest $1,800
Auto loan interest $4,500
Auto insurance $900
Property taxes on a personal residence $6,500
States and local sales tax paid in 2016 $4,000
Blue Cross Health insurance premiums $2,000
Other medical expenses $800
Income tax preparation fee $500
Charitable Contributions:
Boy Scouts $600
St. Matthews Church $400
UGA Pharmacy School $30,000
Georgia Republican Party $300
American Red Cross $50
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st edition
Authors: Gerald E. Whittenburg , Martha Altus Buller, Steven L Gill