Based on the facts below, prepare for Shelli Thomson her US (federal) individual income tax return (Form 1040), her Schedule A (Itemized Deductions), Schedule 3 (Additional Credits and Payments).

Shelli Thomsons

a. Birthday is January 1, 1970;

b. Social Security number is 111-11-1113;

c. Address is 7605 Walnut Street, Los Angeles, CA 90013;

d. Tax return filing status is single; and

e. Her ordinary income tax rate is 10%.

3. For line 11 of the Form 1040, multiply the total amount of income you entered on line 10 of the Form 1040 by 10% (Shellis income tax rate) and enter that amount on line 11.

4. For the taxable year, Shelli:

a. Earned $50,000 in wages as a chemist

b. Her employer, Sargent Chemical Corp, did not withhold federal and state income taxes;

c. Received $200 of interest on her savings bank account;

d. Paid $7,000 in out-of-pocket medical expensesincluding co-pays for prescription drugs and doctor appointments;

e. Paid property (real estate) taxes of $5,000 to the city of Los Angeles;

f. Paid $10,000 in home mortgage interest on her home mortgage. Her mortgage was $100,000 and was secured by her home;

g. Incurred a $2,000 theft loss;

h. Incurred a $3,000 casualty loss after her home was damaged by a tornado in a federally declared disaster area;

i. Donated $200 in cash to a tax-exempt charity; and

j. Can claim a $500 American Opportunity Credit.

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