John Fuji (age 37) moved from California to Washington in December 2011. 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 2012 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 Brae burn 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 2012, 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 2012, 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 2012. Use Form 1040, Schedule A, Schedule B, and Form 4684, on pages 5-53 through 5-57 to complete this tax return. Make realistic assumptions about any missing data.