Comprehensive Tax Return

To complete this assignment, read the information below and then complete the 2019 individual Federal income tax return for Kevin and Jim by hand (this means hand written numbers in the forms). You will need the following forms: 1040, Schedules A and B and Form 8283, if necessary. You should use 2019 tax forms and rates (you must use the tax rate tables to find the tax due). Last year they filed as married filing jointly

This assignment may be completed individually, or with one other student. If completed with another student, please put both students names on the assignment and turn in one document. If you have extenuating circumstances, please let me know with ample time before the deadline so we can make alternate arrangements. This assignment must be scanned and submitted to the class dropbox on D2L prior to the due date. Outside of extenuating circumstances, late projects will have 5% deducted from the grade for each day beyond the due date, up to a maximum of 20% deduction. Projects will not be accepted after the final exam, at which point final grades will be calculated. In addition to the tax forms, also include a formal memo (typed) to the taxpayers in which you explain very generally how you computed their tax, any assumptions you made or questions you would have liked to know the answers to, and any planning advice you would recommend going forward. The memo can be in any format and should be less than a page long, but more than a few sentences. This is the type of email or letter that would accompany your final deliverable to the client. You will also need to include some statements that link any calculated amounts in the tax forms to a statement showing what went into the calculation. An example of statements will be provided with the solutions to Assignment 4.

FACTS

This is information relating to Kevin and Jim Jones for 2019. Kevin and Jim are married and have 2 adopted children, Aubrynne (a girl) and Bryson (a boy). They live at 236 9^th Ave., New York, NY 10011

Kevin is a lawyer who works for a law firm. Jim works part time in a genetic research lab.

The Jones Social Security numbers and ages are as follows:

Kevin 111-11-1111 32

Jim 222-22-2222 28

Aubrynne 333-33-3333 5

Bryson 444-44-4444 3

Receipts

Kevins salary $95,000

Jims salary 30,000

Municipal bond interest 2,550

Interest on C.D.s at Universal Savings 2,900

*Qualified dividend on GM stock 1,800

*Qualified dividends should be reported as both qualified and ordinary on the tax forms.

Expenditures

Eye exam and eyeglasses for Aubrynne 700

Orthodontic work to correct Brysons congenital defect 2,200

Medical insurance premiums (paid on an after tax basis) 2,000

State withholding for income tax 8,750

Federal withholding for income tax 15,000

State income taxes paid with last years return 600

Property tax on condo 1,200

Ad valorem Property tax on automobile 450

Home mortgage interest 10,300

Interest on credit cards 300

Cash contribution to Oregon Meditation center 4,150

Cash contribution to a senators campaign 1,600

Charitable donation of stock

On September 17, Kevin and Jim donated Beta Trade Inc. stock to Portland State University Accounting Scholarship Fund. Beta Trader, Inc. is publicly traded. Kevin and Jim had purchased the sock on November 7, 2004 for $350. On the date of donation, the fair market value of the contribution is $800.

Miscellaneous

The taxpayers did not have signature authority over a foreign bank account.

The taxpayers did not receive a distribution from a foreign trust.

You do not need to complete any state tax returns.

Do not worry about Alternative Minimum Tax (AMT)