Carl Conch and Mary Duval are married and file a joint return. They live at 1234 Mallory Sq. Apt. 64, Key West, FL 33040. Carl works for the Key Lime Pie Company and Mary is a homemaker after losing her job in 2011. Mary's Social Security number is 633-65-7912 and Carl's is 835-21-5423. Carl's earnings and income tax withheld for 2012 are:
Earnings from Key Lime Pie Company..........................................$67,000
Federal income tax withheld..........................................................9,726
State income tax withheld..................................................................0
Carl and Mary have interest income of $283 from a savings account at Coral Reef State Bank.
Carl owns stock in Southwest Airlines. Southwest paid Carl $125 in nonqualified dividends in 2012.
Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pursuant to their divorce decree, Mary pays Tom $525 per month in child support.
All payments were made on time in 2012.
In June of 2012, Mary's father gave her a cash gift of $75,000. Mary also received unemployment compensation of $2,600 during 2012. Mary won a $1,000 prize in a women's club raffle in 2012. No income tax was withheld from the prize.
The Key Lime Pie Company provides Carl with a company car to drive while he is working. The Company spent $6,475 to maintain this vehicle during 2012. Carl never uses the car for personal purposes.
Required:
Complete Carl and Mary's federal tax return for 2012. Use Form 1040 on pages 2-49 and 2-50. Make realistic assumptions about any missing data.