2A. Steve Jackson (age 51) is a single taxpayer living at 3215 Pacific Dr., Del Mar, CA 92014. His Social Security number is 465-88-9415. In 2010, Steve’s earnings and income tax withholding as the manager of a local hotel are:

Earnings from the Ocean View Hotel $100,000 Federal income tax withheld 13,500 State income tax withheld 6,300 Steve’s other income includes interest from SDG&E bonds of $2,500 and interest on a savings account at Wells Fargo Bank of $3,190. Also, Steve received tax-exempt interest of $29,200 on private activity bonds that is subject to alternative minimum tax.

During the year, Steve paid the following amounts (all of which can be substantiated):

Home mortgage interest $31,700 Credit card interest 1,760 Auto insurance 900 State income taxes paid in 2010 (for 2007 audit) 12,540 Property taxes on personal residence 6,200 Kaiser HMO premiums 1,800 Other medical expenses 790 CPA fees paid to handle 2007 IRS audit 7,000 Charitable contributions:

Girl Scouts 800 San Diego State University (contribution) 10,000 Italian Red Cross 250 Required: Complete Steve’s federal tax return for 2010. Use Form 1040, Schedule A, Schedule B, Form 6251, and any other appropriate schedule(s) you need on pages 6-53 through 6-58. Make realistic assumptions about any missing data.