(2018 taxes)

CASE STUDY 2. Ally, Sophie and Carson Davidson Ally Davidson is 38 years old and divorced. Her social security number is 888 66 4444. Her daughter, Sophie who is 19 years old, has a SSN of 333-55 7777. Her son, Carson (who is 15 years old), has a SSN of 999 88 7777. Sophie and Carson both lived with Ally for the entire year at 2 Surfside, Seal Beach CA. Ally provided more than half of Sophie and Carsons support and paid all of the cost of keeping up their home. Ally eamed $75,500 as a nurse. Federal income tax withheld from her salary was $3,700. She received $100 in interest from the Bank of America and $380 in ordinary dividends from her Apple Stock. Her ex husband paid her $20,000 in alimony and $16,000 in child support. Even though Ally received a refund from her federal taxes last year, she had to pay $460 in state income taxes. Ally's only retirement program is a hospital pension that she does not contribute to; she is given a contribution from the pension. Sophie just started college this past year and had $1,600 in qualifying expenses between the Spring and Fall semesters. Ally has listed as potential itemized deductions for this year the following: I would like you to determine which of these can be used on her schedule A. Please record your answers on the answer sheet, which you will then upload into drop box United Calvary Church contribution $2,400 Used clothing donated to Goodwill $250 Interest paid on a car loan $980 Interest paid on credit card bills $204 out of pocket medical expense $6,460 Home mortgage interest $7,040 . General sales tax paid $430 Personal property taxes for her car $300 Real estate taxes $1,400 Local income taxes withheld $702 Tax preparation fees $540 Ally wants a refund of any overpaid tax. Ally does not want to contribute $3 to the Presidential Election Campaign Fund. Complete Form 1040 and Schedule A and attach them to the end of this assignment. Sign the forms for Ally. Her accountant is John Winsor, Fill in the Blank 13. On Ally's 1040, what amount goes on Line 1? wages salaries, tips 14. Line 2b. Tax exempt interest 15. Line 3b. ordinary dividends 16. Line 6 - what other income would Ally claim? (See schedule 1 17. Line 7 - what is Ally's adjusted Gross Income? CASE STUDY 2. Ally, Sophie and Carson Davidson Ally Davidson is 38 years old and divorced. Her social security number is 888 66 4444. Her daughter, Sophie who is 19 years old, has a SSN of 333-55 7777. Her son, Carson (who is 15 years old), has a SSN of 999 88 7777. Sophie and Carson both lived with Ally for the entire year at 2 Surfside, Seal Beach CA. Ally provided more than half of Sophie and Carsons support and paid all of the cost of keeping up their home. Ally eamed $75,500 as a nurse. Federal income tax withheld from her salary was $3,700. She received $100 in interest from the Bank of America and $380 in ordinary dividends from her Apple Stock. Her ex husband paid her $20,000 in alimony and $16,000 in child support. Even though Ally received a refund from her federal taxes last year, she had to pay $460 in state income taxes. Ally's only retirement program is a hospital pension that she does not contribute to; she is given a contribution from the pension. Sophie just started college this past year and had $1,600 in qualifying expenses between the Spring and Fall semesters. Ally has listed as potential itemized deductions for this year the following: I would like you to determine which of these can be used on her schedule A. Please record your answers on the answer sheet, which you will then upload into drop box United Calvary Church contribution $2,400 Used clothing donated to Goodwill $250 Interest paid on a car loan $980 Interest paid on credit card bills $204 out of pocket medical expense $6,460 Home mortgage interest $7,040 . General sales tax paid $430 Personal property taxes for her car $300 Real estate taxes $1,400 Local income taxes withheld $702 Tax preparation fees $540 Ally wants a refund of any overpaid tax. Ally does not want to contribute $3 to the Presidential Election Campaign Fund. Complete Form 1040 and Schedule A and attach them to the end of this assignment. Sign the forms for Ally. Her accountant is John Winsor, Fill in the Blank 13. On Ally's 1040, what amount goes on Line 1? wages salaries, tips 14. Line 2b. Tax exempt interest 15. Line 3b. ordinary dividends 16. Line 6 - what other income would Ally claim? (See schedule 1 17. Line 7 - what is Ally's adjusted Gross Income