Alice Johnson, age 42, Social Security # 222-23-3334, who lives at 12345 Elm Street, Orlando, FL 12345, is a single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her federal income tax return for the current year:

-Received a $26,000 salary from her employer, who withheld $3,000 federal income tax.

-Received a gift of 1,000 shares of Ace Corp. stock with a $100,000 FMV from her mother. She also received $4,000 of cash dividends from the Ace Corp. The dividends are not qualified dividends and will be subject to the tax rates on the 2015 ordinary tax rate schedules. (Hint: The gift will not be reportable in gross income and would not be until Alice actually sells the stock, which she doesnt do in this project. The dividends on the stock, however, are includable in gross income).

-Received $1,000 of interest income on bonds issued by the City of Tampa.

-Received a regular stock dividend of 50 shares of Ace Corp. stock with a $5,000 FMV. Alice had no option to collect cash in lieu of the stock dividend so it is nontaxable under Sec. 305.

-Alice's employer paid $2,000 of medical and health insurance premiums on her behalf.

-Alice received $12,000 alimony from her ex-husband.

-State University provided $60,000 of group term life insurance. Alice is 42 years old and is not a key employee. Other employees also receive the life insurance benefit. The table in the text on page 4-12 should be used to calculate the taxable amount of the life insurance benefit. (Hint: calculate this taxable amount for the whole year and add this amount of taxable income to the salary and wages line on the 1040.)

-Received a $1,000 cash award from her employer for being designated the Secretary of the Year. She plans on using this for a trip to Vegas with her sister in the summer.

-Her total itemized deductions are $8,000.

-Alice was in an accident in 2013 which was settled in court in 2014. She received $32,000 in 2014 for physical injuries which was awarded to cover her medical bills due to the accident.

Instructions: Complete the entire Form 1040 for Alice Johnson's 2014 return. You will use the 2014 1040 tax return and 2014 tax schedules which can be found at www.irs.gov since the 2015 forms are not available yet. The 2014 standard deduction for a single taxpayer is $6,200 and the 2014 personal exemption amount is $3,950. Also complete a Schedule B (Interest and Ordinary Dividends) to attach to the 1040. This can also be found on the IRS website.