a. Richard and Anna Wilson are married and file a joint return, Richard is 47 years of
Question:
a. Richard and Anna Wilson are married and file a joint return, Richard is 47 years of age, and Anna is 46. Richard is employed by Telstar Corporation as its controller, and Anna is self-employed as a travel agent. They have three children: Michael, age 22; Lisa age 17, and Laura age 14. Michael is full-time student at Rutgers University. Lisa and Laura both live at home and attend school full time. The Wilson currently live at 3721 Chestnut Ridge Road, Montvale, New Jersey 07645, in a home they have owned since July 2008.
Richard and Anna provided over half of the support of Anna’s mother, Ruth Knapp, who currently lives in a nursing home in Mahwah, New Jersey. They also provided over half of the support of their son, Michael, who earned $4,750 during the summer as an accounting student intern for a national accounting firm.
b. Richard received a Form W-2 from his employer reporting the following information for 2019.
Richard M. Wilson, Social Security NO.294-38-6249
Gross wages and taxable benefits $63,000
Federal income taxes withheld 11,400
F.I.C.A. taxes withheld:
Social security 3,906
Medicare 914
State income taxes withheld 1,850
The taxable benefits reported on his W-2 include $2,700 (based on the currently deductible standard auto mileage rate) for Richard’s personal use of the company car provided by his employer.
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill