Alex and Phyllis celebrated their 5 th wedding anniversary and their 3 0 th birthdays this year.
Question:
Alex and Phyllis celebrated their th wedding anniversary and their th birthdays this year. The couple met at the local supermarket where they are employed fulltime. The following information concerning income and possible income is provided to you concerning the couple.
For the current tax year, Alexs wages were $ and Phylliss wages were $ The couples employer provides groupterm life insurance in the amount of the employees wages. Assume that the Uniform Premiums table lists a monthly premium amount of $ for a yearold.
Ten years ago, Phyllis received an acre of land as an inter vivos gift from her grandfather. At the time of the gift, the land had an FMV of $ The grandfathers adjusted basis was $ Phyllis sold the land during the current tax year to an unrelated third party for $
The couple received a stock dividend from the Ace Corporation. The couple had the option to receive cash or the stock. They chose the stock, which had a fair market value of $ on the date of distribution. The par value of the stock was $
The couple reviewed their bank statements and saw that they received $ in interest on their checking and savings accounts. However, the bank did not send them a Form INT.
Phyllis received $ when she redeemed her Series EE bonds during the year. Phyllis was given the bonds for her birthday years ago; the cost of the bonds was $ The entire $ proceeds were used for college tuition by the couple during the year.
Alex and Phyllis contributed $ apiece to their traditional IRA and another $ apiece to their Roth IRA.
Alex and Phyllis have a net longterm capital loss of $ from stock transactions.
Complete Form below by putting the proper amounts in the indicated cells. If the value of a cell is zero, you must enter a zero to receive credit for your answer. Use dollar amounts only ie no cents
Form US Individual Income Tax Return
Filing Status Single
Married filing jointly
Married filing separately MFS
Head of household HOH
Qualifying widowerQW
Wages, salaries, tips, etc.
a Taxexempt interest a
b Taxable interest
b
a Qualified dividends a
b Ordinary dividends
b
a IRA distributions a
b IRA distributionsTaxable Amount b
a Pensions and annuities a
b Pensions and annuitiesTaxable Amount b
a Social security benefits a
b Social security benefitsTaxable Amount b
Capital gain or loss
Other income
Add lines bbbbb and This is your total income.
Adjustments to income from Schedule line
Subtract line from line This is your adjusted gross income.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill