Bev and Ken Hair have been married for 3 years. They live at 3567 River Street, Springfield,
Question:
Social Security number is 465-74-3321 and Ken's is 465-57-9934. Bev's earnings and income tax withholdings for 2012 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 2012, 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 2012. 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 2012, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife.
During 2012, 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 2012. Use Form 1040A and the worksheet on pages 2-45 through 2-47. Make realistic assumptions about any missing data.
Step by Step Answer:
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill