Lou and Joann Girardi are married and file a joint return. They recently bought a new home
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Question:
Joann is an attorney and owns her law firm, which is operating as an S corporation. Her W-2 information and Schedule K-1 from her law firm are as follows:
Wages (box 1) | = | $ | 114,800.50 |
Federal W/H (box 2) | = | $ | 15,000.14 |
Social security wages (box 3) | = | $ | 114,800.50 |
Social security W/H (box 4) | = | $ | 7,117.63 |
Medicare wages (box 5) | = | $ | 114,800.50 |
Medicare W/H (box 6) | = | $ | 1,664.61 |
Schedule K-1 from the law offices of Joann Girardi: | Girardi - Attorney at Law |
ID # 12-3456789 | |
100% Owner | |
Material participation – yes |
Line 1 = $22,582.00 (ordinary business income)
Line 11 = $22,582.00 (§ 179 deduction)
Lou is a full-time lecturer at Arizona State University. His W-2 information from ASU is as follows:
Wages (box 1) | = | $ | 65,000.00 |
Federal W/H (box 2) | = | $ | 9,950.25 |
Social security wages (box 3) | = | $ | 65,000.00 |
Social security W/H (box 4) | = | $ | 4,030.00 |
Medicare wages (box 5) | = | $ | 65,000.00 |
Medicare W/H (box 6) | = | $ | 942.50 |
The following are other income and expenses they received and incurred during the year:
Income | ||
Dividend (qualified) | $ | 666 |
Interest | 765 | |
Expenses | ||
Real estate taxes | 7,836 | |
State sales tax | 1,629 | |
Mortgage interest | 32,562 | |
Charitable contribution | 2,598 |
Use the appropriate Tax Tables or Tax Rate Schedules.
Related Book For
Federal Taxation 2019 Individuals
ISBN: 9780134739670
32nd edition
Authors: Timothy J. Rupert, Kenneth E. Anderson
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