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COMPREHENSIVE TAX RETURN PROBLEM 2 2. Richard M. and Anna K. Wilson a. Richard and Anna Wilson are married and file a joint return. Richard

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COMPREHENSIVE TAX RETURN PROBLEM 2 2. Richard M. and Anna K. Wilson a. Richard and Anna Wilson are married and file a joint return. Richard is 47 years of age and Anna is 46. Richard is employed by Telstar Corporation as its con- troller and Anna is self-employed as a travel agent. They have three children: Michael, age 22; Lisa, age 17; and Laura, age 14. Michael is a full-time student at Rutgers University. Lisa and Laura both live at home and attend school full-time. The Wilsons currently live at 3721 Chestnut Ridge Road, Montvale, New Jersey 07645, in a home they have owned since July 1989. Richard and Anna provided over half of the support of Anna's mother, who currently lives in a nursing home in Mahwah, New Jersey. They also provided over half of the support of their son. Michael, who earned $4,750 during the summer as an accounting student intern for a national accounting firm. b. Richard received a Form W-2 from his employer reporting the following informa- tion for 2010: Richard M. Wilson. Social Security No. 294-38-6249: Gross wages and taxable benefits . .. . . . . . . dad $63,000 Federal income taxes withheld. 11/400 F.I.C.A. taxes withheld: Social security . . .. . . . . . 3.906 Medicare . . . . . . 914 State income taxes withheld 1,850 The taxable benefits reported on his W-2 Form include $2,700 (based on the cur- rently deductible standard auto mileage rate) for Richard's personal use of the company car provided by his employer

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