Question:
Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield, MO 63126. Ken is a full-time student at Southwest Missouri State University (SMSU) and Bev works as an accountant at Cypress Corporation. Bev's
Social Security number is 465-74-3321 and Ken's is 465-57-9934. Bev's earnings andincome tax withholdings for 2013 are:
Earnings from Cypress Corp............................................. $50,000
Federal income tax withheld.................................................5,500
State income tax withheld......................................................675
The Hairs have interest income of $1,000 on City of St. Louis bonds. During 2013, Bev and Ken received the following 1099-INT and DIV:
Ken is an excellent student at SMSU. He was given a $1,750 scholarship by the university to help pay educational expenses. The scholarship funds were used by Ken for tuition and books. Ken also had a part-time job at SMSU. He was paid $2,525 on a W-2 for helping out in the Dean's office. There was no income tax withheld on the amount paid to Ken from this job. Last year, Bev was laid off from her former job and was unemployed during January 2013. She was paid $1,825 of unemployment compensation until she started work with her current employer, Cypress Corporation. Ken has a 4-year-old son, Robert R. Hair, from a prior marriage. During 2013, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife. During 2013, Ken's aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the SMSU Credit Union account.
Required:
Complete the Hair's federal tax return for 2013. Use Form 1040A and the worksheet on Pages 2-45 through 2-47. Make realistic assumptions about any missing data.
Transcribed Image Text:
9292 VOID CORRECTED OMB No. 1545-0112 PAYER'S name, street address, city or town, province or state, country, ZP or foreign postal code, and telephone no. Payer's RTN (optional) 2013 Interest Income 1 Interest income Boatman's Bank 300 City Avenue Springfield, MO 63126 $577 2 Early withdrawal penalty Form 1099-INT Copy A PAYER'S federal identification number RECIPIENT'S identification number For Internal Revenue Service Center 3 Interest on U.S. Savings Bonds and Treas. obligations 465-57-9934 RECIPIENT'S name 4 Federal income tax wi File with Form 1096. Ken & Bev Hair For Privacy Act and Paperwork 7 Foreign country or U.S.possessionReduction Act Notice, see the 2013 General Instructions for Certain Information Returns Street address (including apt. no.) 6 Foreign tax paid 3567 River Street City or town, province or state, country, and ZIP or foreign postal code Springfield, MO 63126 8 Tax-exempt interest 9 Specified private activity bond interest Account number (see instructions) 2nd TIN not. 10 Tax-exempt bond CUSIP no. 11 State 12 State identification no.13 State tax withheld Form 1099-INT Cat. No. 14410K www.irs.gov/form 1099int Department of the Treasury Internal Revenue Service 9191 VOID CORRECTED PAYE me, street address, city or town, province or state, country, ZIP 1a Total ordinary dividends OMB No. 1545-0110 or foreign postal code, and telephone no. Green Corporation 900 South Orange Ave Springfield, MD 63126 2013 Dividends and 287 Distributions 287 Form 1099-DIV Copy A For Internal Revenue 2a Total capital gain distr.2b Unrecap. Sec. 1250 gain PAYER'S federal identification number RECIPIENTS identification numbr 2c Section 1202 gain 2d Collectibles (28%) gain Service Center File with Form 1096. 465-57-9934 For Privacy Act and Paperwork Reduction Act Notice, see the Ken & Bev Hair Street address (including apt. no.) 3567 River Street City or town, province or state, country, and ZIP or foreign postal code Springfield, MO 63126 6 Foreign tax paid 7 Foreign country or U.S. posses2013 General Instructions for Certain Information S ReturnS bond interest dividends 2nd TIN not. 12 State 13 State identfication no 14 State tax withheld