Bob is single and works for IBM. He has a 4 yr old daughter. During the...

 

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Bob is single and works for IBM. He has a 4 yr old daughter. During the year, he had the following financial transactions. 1. Bob earned 130,000 from his employment before any monies were taken out. He had 6000 of money taken out for state income taxes, 3000 for Social Security (FICA), and 2000 for Federal taxes. During the year, he commuted 2000 miles to her office in the city from her home. His mother gave him $15,000 for a gift. Also, Bob borrowed $30,000 from the bank and paid the bank 2000 in interest. He used the money to purchase IBM bonds which paid him interest of 1000. Bob aunt gave her some stock which cost the aunt $40,000. The stock was worth $38,000 when the aunt made the gift. Bob sold the stock for 33,000. Bob had 1000 of gambling winnings during the year and 1500 of gambling losses. He paid student loan interest of 1000 and interest on his car loan of 2000. He made a 2000 contribution to a deductible IRA. He received 4000 of alimony and 5000 in child support. His divorce was finalized in 2016. He received 2000 of US Treasury bond interest and 1000 of interest from a State of Ga bond. 3. Bob has a nice home. He paid 24,000 to his mortgage company of that 15,000 was for mortgage interest and the remainder went to repay principal. The property taxes on their home totaled 5000. They had 500 of repair costs during the year and the fire insurance policy on their house was 200. Bob paid 5000 for his medical insurance policy. He had prescription drug costs of 2000 and paid 3000 for some liposuction. He paid 2000 for a disability insurance policy and 1000 for a life insurance policy. He paid 6000 for the medical bills for his Mom. Bob supports his mom (over 50%). Mom had a total of 3000 of taxable interest during the year. Bob gave 1000 of cash to his church and some stock he had held for 3 years. The stock cost him 500 and was worth 800 at the time of the gift. Bob's car which was worth 10,000 was stolen during the year and never recovered. Bob does not live in a federal disaster zone. Bob has unreimbursed employee expenses of 3000 for the year when he attended a computer conference and was not reimbursed by IBM. Do his taxes. You'll need the form 1040 (2 pages) and Schedule A (one page). You can find the forms at irs.gov. Due Nov 1. Bob is single and works for IBM. He has a 4 yr old daughter. During the year, he had the following financial transactions. 1. Bob earned 130,000 from his employment before any monies were taken out. He had 6000 of money taken out for state income taxes, 3000 for Social Security (FICA), and 2000 for Federal taxes. During the year, he commuted 2000 miles to her office in the city from her home. His mother gave him $15,000 for a gift. Also, Bob borrowed $30,000 from the bank and paid the bank 2000 in interest. He used the money to purchase IBM bonds which paid him interest of 1000. Bob aunt gave her some stock which cost the aunt $40,000. The stock was worth $38,000 when the aunt made the gift. Bob sold the stock for 33,000. Bob had 1000 of gambling winnings during the year and 1500 of gambling losses. He paid student loan interest of 1000 and interest on his car loan of 2000. He made a 2000 contribution to a deductible IRA. He received 4000 of alimony and 5000 in child support. His divorce was finalized in 2016. He received 2000 of US Treasury bond interest and 1000 of interest from a State of Ga bond. 3. Bob has a nice home. He paid 24,000 to his mortgage company of that 15,000 was for mortgage interest and the remainder went to repay principal. The property taxes on their home totaled 5000. They had 500 of repair costs during the year and the fire insurance policy on their house was 200. Bob paid 5000 for his medical insurance policy. He had prescription drug costs of 2000 and paid 3000 for some liposuction. He paid 2000 for a disability insurance policy and 1000 for a life insurance policy. He paid 6000 for the medical bills for his Mom. Bob supports his mom (over 50%). Mom had a total of 3000 of taxable interest during the year. Bob gave 1000 of cash to his church and some stock he had held for 3 years. The stock cost him 500 and was worth 800 at the time of the gift. Bob's car which was worth 10,000 was stolen during the year and never recovered. Bob does not live in a federal disaster zone. Bob has unreimbursed employee expenses of 3000 for the year when he attended a computer conference and was not reimbursed by IBM. Do his taxes. You'll need the form 1040 (2 pages) and Schedule A (one page). You can find the forms at irs.gov. Due Nov 1.

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Bobs taxable income for the year is 130000 6000 3000 2000 15000 30000 2000 1000 4000 ... View the full answer