Question
Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2017. She lives at 654 Ocean Way, Gulfport, FL 33707. Beas Social
Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2017. She lives at 654 Ocean Way, Gulfport, FL 33707. Beas Social Security number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2018 for her job as a manager at a Florida shrimp-processing plant are:
Earnings from the Gulf Shrimp Co. | $43,200 |
Federal income tax withheld | 4,600 |
State income tax withheld | 0 |
Beas other income includes interest on a savings account at Beach National Bank of $2,200 and $600 per month alimony from her ex-husband in accordance with their 2010 divorce decree.
Beas employer operates a 401(k) plan, and although she is eligible, Bea does not participate.
During 2018, Bea paid the following amounts (all of which can be substantiated):
Home mortgage interest | $8,700 |
Auto loan interest | 2,300 |
State sales tax | 820 |
Property taxes on personal residence | 3,233 |
Unreimbursed hospital bills | 3,250 |
Doctor bills | 2,612 |
Other deductible medical expenses | 720 |
Income tax preparation fee | 600 |
Job-hunting expenses | 925 |
Contribution to IRA | 2,500 |
In September 2018, Tropical Storm Yuri struck Gulfport and a tree fell on Beas home. Bea acquired the home in February 2011 for $110,000. The estimated loss in market value from damage was equal to her repair charge of $7,800. The damage caused by TS Yuri was declared a federal disaster (code EM-1212). Beas deductible was quite high and her insurance company only reimbursed her $1,200.
Required: Complete Beas federal tax return for 2018. Use Form 1040, Schedule A, Schedule B, and Form 4684 (if needed) to complete this tax return. Make realistic assumptions about any missing data.
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