John Fuji (age 37) moved from California to Washington in December 2012. He lives at 468 Cameo Street, Yakima, WA 98901. John's Social Security number is 571-78-5974 and he is single. His earnings and income tax withholding for 2013 for his job as a manager at a Washington apple-processing plant are:
Earnings from the Granny Smith Apple Co...............................$75,000
Federal income tax withheld...................................................8,450
State income tax withheld............................................................0
John's other income includes interest on a Certificate of Deposit at Braeburn National Bank of $1,285. Also, he paid $600 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075).
During 2013, John paid the following amounts (all of which can be substantiated):
Home mortgage interest.....................................................................$8,350
Auto loan interest..............................................................................1,575
Credit card interest...............................................................................655
Property taxes on personal residence.........................................................2,700
State and local sales taxes......................................................................2,000
Unreimbursed hospital bills...................................................................5,200
Doctor bills .....................................................................................2,550
Other medical expenses..........................................................................720
Income tax preparation fee......................................................................500
Job-hunting expenses.............................................................................925
Cash charitable gift to the Jonagold Research Center.......................................500
In July 2013, someone broke into John's house and stole a coin collection. The collection had a fair market value of $12,000 and a tax basis to John of $4,000. The collection was uninsured.
Required:
Complete John's federal tax return for 2013. Use Form 1040, Schedule A, Schedule B, and Form 4684, on Pages 5-55 through 5-59 to complete this tax return. Make realistic assumptions about any missing data.