Julie Anderson is a project manager and her wage is 74,200. Julie's father passed away on April 14. She inherited her father’s cottage in Montana and 80,000 cash. She used the 80,000 to invest in an annuity product that pays her $ 10,000 for the next 10 years.

Her 2019 filing status is Single. She also has the following items for 2019:

Interest income from:

Capital One 200

City of San Francisco municipal bond 600

US Treasury bond 800

Ordinary dividends from her investment in Wells Fargo… 500. All the dividends are qualified for the 15% tax rate.

She also bought 50 shares Apple Inc. stock (AAPL) when the price was $100 per share. AAPL's market closing price for December 2019 is $250 per share. No shares were sold during the year.

During the year she went to Wynn Las Vegas and won $ 1,300 in a poker game. However, she lost $2,000 at another casino.

She received $4,000 insurance payout from AFLAC. The insurance policy was bought by herself.

She has the following refunds and withholdings and took the standard deduction on her 2018 federal tax return.

California state income tax refund……… 250

State income tax withheld from her paycheck…………………. .4200

Federal income tax withheld from her paycheck………………. 9000

Social security tax paid as an employee............. 5340

She owns and lives in her house in Fresno, CA and has the following expenses:

Home mortgage loan interest………………… 8700

Home mortgage loan points (not reported on Form 1098)….. 200

Real estate tax on her house………………… 4000

Personal-use car loan interest……………….. 2000

She also paid 2000 of qualified student loan interest.

Ms. Anderson had a medical procedure and incurred qualified medical costs of $30,000. Her health insurance policy pays 80% of the medical cost and Julie paid the remaining 20% out of her own pocket.

Fill out the 1040 form

Answer rating: 100% (QA)

3 SR No 1 8 9 2 3 4 10 Particulars Line 1 of Form 1040 Salaries Wages Tips etc on form W2 Taxable in... View the full answer