Question
can someone show me what this problem whould look like on a 1040and 8889 tax form Karen and Carl Sanders obtained a divorce effective March
can someone show me what this problem whould look like on a 1040and 8889 tax form
Karen and Carl Sanders obtained a divorce effective March 1, 2016. In accordance with the divorce decree, Carl was required to pay Karen $2,250 per month until their only child turns 18; then the payments would be reduced to $1,500 per month. Karen has full custody of the child and appropriately takes the dependent deduction and child credit. Furthermore, Carl was to transfer title of their house, which had a cost of $150,000 and a fair value of $200,000 on the date of transfer, to Karen and was to continue making the monthly mortgage payments of $1,235 on behalf of Karen. Carl works for a large oil distributor in Santa Fe, NM, and after the divorce lives at 1132 Northgate Avenue, Santa Fe, NM 87501. Karens social security number is 412-34-5671 (date of birth 11/4/1982), and Carls social security number is 412-34-5670 (date of birth 8/14/1979). Carl had qualifying health care coverage at all times during the tax year. His new HSA account is self-only and that he has a HDHP.
His W-2 contained the following information:
Wages (box 1) | = | $ | 85,100.25 |
Federal W/H (box 2) | = | $ | 7,325.24 |
Social security wages (box 3) | = | $ | 85,100.25 |
Social security W/H (box 4) | = | $ | 5,276.22 |
Medicare wages (box 5) | = | $ | 85,100.25 |
Medicare W/H (box 6) | = | $ | 1,233.95 |
He also received a Form 1099-INT from First New Mexico Bank with $336 of interest income in box 1. In addition, Carl made a timely $2,500 contribution to his new HSA account.
Prepare a Form 1040 and a Form 8889 for Carl. (Do not round your intermediate computations. Input all the values as positive numbers.)
Use the appropriate Tax Tables.
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