Our new client came in today to spoil my birthday which is 3/16. I felt so
Fantastic news! We've Found the answer you've been seeking!
Question:
Our new client came in today to spoil my birthday – which is 3/16. I felt so bad. Her husband died back in 2014. She has no kids. In 2017 she went back to work. She is 67 years old – will turn 68 on 4/15/18. All 2017 year – she works as a teachers aide. She was living off his pension since he died. She is not sure if she filed a tax return for 2014, 2015 or 2016 BUT she is looking through her paperwork and will let us know…she’s been lost without her husband, but getting better every day. For now she wants us to prepare her 2017 tax return for filing on or before 4/15/18.
Facts –
- Pension - $40,000 for 2017. On this, $4,000 of federal income tax was withheld and paid in on her behalf.
- Salary - $35,000. Fed income tax withheld by her employer - $4000. FICA tax withheld by her employer – $2,677.50. State of DE income tax withheld by her employer - $1,750.
- State of DE bonds – Holds $200,000 in bonds paying 2% interest – so earned $4,000 in 2017.
- Annuity – In 2014 she paid $200,000 for an annuity that will pay her $2,400 monthly for ten years. So she received 12 such payments in 2017 - $24,000 in total.
- She does some tutoring on the side – charges $20 an hour. Her business in called “Tutoring By Maria” and her gross revenues were $4,000 during 2017. Her costs – mostly for advertising in the Church Bulletin – were $200 for the year. She bought some supplies too – about $300 – to use in the business.
- In 2015 (dec 1) she bought some stock in Amazon for $380 per share – 500 shares total. In October 1, 2017 she sold all 500 of her shares for $1,100 per share. Invested the proceeds in a bank account and earned $3,000 in interest income for 2017.
- She receives – in 2017 - $20,000 in Social Security Benefits. $2,000 of federal income tax was withheld and paid in.
- In 2016 she bought a new home – her interest expense on the mortgage is 21,000. Her property taxes are $3,500 (paid in 2017) and she gives $100 monthly to her church. Her Home Owners Association fee (covers the pool; trass pick up; lawn service and snow removal) is $100 monthly.
- She told me she made NO estimated tax payments.
- But in 2016 she had a car accident and got hurt – broken wrist. In December 2017 she settled with insurance company and received $100,000 – other guy was at fault.
Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
Posted Date: