Can anyone help me on my income tax comprehensive problem?

ACC 129 - Comprehensive Final Problem - Fall 2016 Complete the following problem. YOU SHOULD NOT GIVE OR RECEIVE HELP FROM ANYONE. The problem is due at the beginning of class on December 8th. George (12/24/1973) and Mary Bailey (6/29/1974) are married. They have two children remaining at home Zuzu (223-07-5439), (DOB 6/29/2006), and Harry (324-92-1765), DOB (1/4/1998) who is a full-time college student. They also had a cousin Clarence Bailey (213-34-5667) (DOB 9/6/1949) who stayed with them for five months while he was waiting for admission to flight school. Clarence's only income was Social Security of $5,400 and George and Mary provided 100% of his support while he was with them. Both George and Mary work for the building and loan his father founded. Their W-2's are included on the next page. The Bailey's have also assembled the following list of expenses: Doctors and pharmacy Asprin, Tylenol and Vitamins Family Health Insurance (pretax) Jacuzzi for George's aching back (not prescribed) Crutches when Harry broke his leg in soccer Dr. Alfred Bonebreak, MD medical fees Anna Feline D.V.M. (treatment of Fluffy, the Bailey's cat) Life insurance on George with Mary as beneficiary Orville Payne, dentist (not covered by insurance) Weight loss program for Mary (cosmetic purposes) Spex Appeal Optometry exam (not covered by insurance) Eyeglasses for Harry (not covered by insurance) Medical mileage Property taxes for house Property taxes on autos Assessment for street repairs Sales taxes Mortgage interest Home equity mortgage interest Driver's license renewal for Mary Fishing license for George Interest on personal loan for vacation Credit card interest Charitable contributions Angel Church (cash) Clothing donation to Salvation Army Cost $600, FMV $270 Value of George's time volunteered to Boy Scouts Mileage for charitable work Dues to Bedford Falls Country Club Political contributions Professional Banker's Association dues Tax preparation fees Safe deposit box (for bonds) Meals bought by George while working late $ 3,185 220 3,350 2,500 139 900 768 1,200 869 180 150 235 215 miles 2,500 208 1,200 785 8,950 1,100 32 12 275 945 2,550 300 143 miles 535 50 350 475 40 275 On February 12, thieves broke into the Bailey's home. They were not insured against theft. They notified the police immediately. The following items were stolen: A stereo which cost $1,400 when purchased December 17, 2014. Fair market value at the time of the theft was $600 A computer which cost $2,198 when purchased January 15, 2014. Fair market value at the time of theft was $1,550 Silverware which cost $2,400 when purchased May 15, 2006. Fair market value at the time of theft was $4,500 The Bailey's itemized deductions last year and received a refund from the state of North Carolina of $870. The Baileys paid college expenses for Harry who is in his first year at Bedford Falls University. They paid $3450 in tuition and fees, $700 in books, and $960 for a computer for Harry to take to college. Harry received a scholarship of $1200. George is also taking a course at AB Tech to improve his computer skills so he can work more efficiently. The cost of the computer course was $202 and books were $90. George's father died during the year and left him $25,000 from the proceeds of a life insurance policy. The Baileys used it to fix up the old house they are living in. The Baileys paid child care for Zuzu $4,200 to Rose Petal Day Care (56-1223432) at 122 Old House Way, Bedford Falls 28802 The Baileys had $270 in interest from an account they had at the Building and Loan and $167 interest from State of NC bonds. They had dividends of $398 from Disney, and $759 from Ghostbusters Corp. The dividends from Disney are qualified dividends. They each received a $25 gift certificate from Ingles as a holiday gift from the Savings and Loan. George also received $75 in jury duty pay. On an outing with her friends to Harrah's Cherokee Casino, Mary won $400. Her gambling losses amounted to $525. The Savings and Loan paid health insurance premiums for Mary and George of $7,638. W-2 Wage and Tax Statement Copy 2 To Be Filed With Employee's State, City, or Local Income Tax Return A Control number OMB No. 1545-0008 b Employer's identification number 1 Wages, tips, other compensation 56-4778921 2 Federal income tax withheld $53,569.81 c Employer's name, address, and ZIP code 3 Social security wages Bailey Building and Loan One Main Street Bedford Falls, NC 28811 $ 3218.02 4 Social security tax withheld $53,569.81 5 Medicare wages and tips $3321.32 6 Medicare tax withheld $53,569.81 $776.76 7. Social Security tips 8. Allocated tips 9 Advance EIC payment 10 Dependent care benefits e Employee's name, address, and ZIP code 11 Nonqualified plans 12a See Instructions for Box George Bailey 22Wildbird Lane 320 Sycamore Lane Bedford Falls, NC 28802 13 Statutory employee 12b d Employee's social security number 244-19-0932 | 14 Other Retirement Third-party plan sick pay | 12c | 12d | 15 State NC | Employer's state I.D. No. 11-1329778 16 State wages, tips, etc. $53569.81 17 State income tax $2796.71 This information is being furnished to the Internal Revenue Service. If you are required to file a tax return, a negligence penalty or other sanction may be imposed on you if this income is taxable and you fail to report it. Department of the Treasury - Internal Revenue Service A Control number OMB No. 1545-0008 b Employer's identification number 1 Wages, tips, other compensation 56-4778923 2 Federal income tax withheld $22,458.92 c Employer's name, address, and ZIP code 3 Social security wages Bailey Building and Loan One Main Street Bedford Falls, NC 28811 $ 1218.02 4 Social security tax withheld $22,458.92 5 Medicare wages and tips $1459.83 6 Medicare tax withheld $22,458.92 $325.65 7. Social Security tips 8. Allocated tips 9 Advance EIC payment 10 Dependent care benefits e Employee's name, address, and ZIP code 11 Nonqualified plans 12a See Instructions for Box Mary Bailey 22Wildbird Lane 320 Sycamore Lane Bedford Falls, NC 28802 13 Statutory employee 12b d Employee's social security number 533-29-1841 | 14 Other Retirement Third-party plan sick pay | 12c | 12d | 15 State NC | Employer's state I.D. No. 11-1329778 16 State wages, tips, etc. $22,458.92 17 State income tax $796.71 This information is being furnished to the Internal Revenue Service. If you are required to file a tax return, a negligence penalty or other sanction may be imposed on you if this income is taxable and you fail to report it. You should complete a 1040 along with all necessary schedules and forms. The return is due at the beginning of class on December 8th