Question
Casey Morgan is a single taxpayer, social security number 412-34-5670, who lives at 582 Brockton Lane, Columbus, OH 43081. Casey has income from a job
Casey Morgan is a single taxpayer, social security number 412-34-5670, who lives at 582 Brockton Lane, Columbus, OH 43081. Casey has income from a job as a manager, interest and dividend income, and stock investments. Some of these investments are in a mutual fund.
For the tax year 2022, Casey had the following income information:
Wages | $ 128,796 |
---|---|
Social security tax withholding | 7,985 |
Medicare tax withholding | 1,868 |
Federal income tax withholding | 17,950 |
State income tax withholding | 3,727 |
Casey had the following investment income:
Foundation Bank 1099-INT | $ 1,000 | |
---|---|---|
Great Return Mutual Fund 1099-INT | 2,105 | |
Great Return Mutual Fund 1099-DIV | 1,200 | (ordinary dividends) ($328 qualified) |
Great Return Mutual Fund 1099-DIV CGD | 4,380 | (capital gain distribution) |
Casey had the following investment sales:
- A 1099-B from Great Return Mutual Fund for the sale of 100 shares of the fund. Casey had purchased 50 shares on September 21, 2021, for $650; 50 shares on October 1, 2021, for $500; and 50 shares on November 30, 2021, for $800. He sold 100 shares on June 13, 2022, for $700. She uses the average cost method to calculate the cost basis of fund shares.
- A 1099-B from XYZ Brokerage Company for $5,500 gross proceeds from the October 21, 2022, sale of 50 shares of Liquid Rhino Marketing. The shares were originally purchased on October 22, 2021, for $2,500.
- A 1099-B from ABC Brokerage Company for $2,000 gross proceeds from the November 2, 2022, sale of 60 shares of Crestwood Company. Casey originally inherited the shares from a relative on February 18, 2022. The shares had an FMV of $2,500 on the relatives date of death. The relative originally purchased the shares for $400 in 1994.
Other information:
- Casey had a capital loss carryover from 2021; $2,163 short-term
Casey had the following itemized deductions:
Medical insurance premiums | $ 5,000 |
---|---|
Real estate taxes | 6,188 |
Home mortgage interest (Form 1098) | 24,891 |
Cash charitable contributions | 2,000 |
Tax preparation fee | 200 |
Casey does not want to contribute to the presidential election campaign and does not want anyone to be a third-party designee.
Required:
Complete the 2022 tax return for Casey Morgan. Casey has not acquired any financial interest in virtual currency last year. For any missing information, make reasonable assumptions. Use the appropriate Tax Tables or Tax Rate Schedules.
Note: List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Do not skip rows while entering in Sales and Other Dispositions of Capital Asset's Short term section. Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round all intermediate calculations and your final answers to the nearest whole dollar amount. Enter zero where applicable.
ge 1 of Form 1040. Use provided information and follow instructions on form
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started