Question
Danae Coleman is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. She is a supervisor and her SSN is 412-34-5670. Using the following
Danae Coleman is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. She is a supervisor and her SSN is 412-34-5670. Using the following information, complete her tax return for 2019:
Kimber Company W-2: | |||
Gross | $ | 90,000 | |
Social security tax | 5,580 | ||
Medicare tax | 1,305 | ||
Federal withholding tax | 16,300 | ||
State withholding tax | 2,700 | ||
Lee Company W-2: | |||
Gross | $ | 22,500 | |
Social security tax | 1,395 | ||
Medicare tax | 326 | ||
Federal withholding tax | 2,300 | ||
State withholding tax | 600 | ||
Danae has the following itemized deductions: | |||
Real estate tax | $ | 7,633 | |
Mortgage interest | 8,445 | ||
Charitable contributions | 3,000 | ||
Danae has the following investments: | |||
1099-INT | $ | 2,510 | |
1099-DIV | |||
Ordinary dividends | 2,389 | ||
Qualified dividends | 1,963 | ||
Capital gain distribution | 4,711 | ||
2018 short-term loss carryover | (1,000 | ) | |
He also has received interest from a 1099-INT of $2,510 from Asha Corporation Bank and a dividend from a Form 1099-DIV of $2,389 in ordinary dividends received from Mint brokerage, of which $1,963 are considered qualified dividends.
Danae received a gift of 2,000 shares of FNP Inc. stock from her Aunt Jane on January 19, 2019. The basis of the shares to Aunt Jane was $4,300, and they had an FMV of $4,600 on the date of the gift. Aunt Jane purchased the stock on December 30, 2017. On June 30, 2019, Danae sold all the shares for $6,000.
Danae is an avid stamp collector and purchased a rare stamp on March 20, 2009, for $4,000. She sold the stamp for $6,000 on April 8, 2019.
Required:
Prepare Form 1040 and all related schedules, forms, and worksheets for 2019. Danae does not donate to the presidential election campaign. Danae is a manager at Kimber Company and had qualifying health care coverage at all times during the tax year. (Indicate losses with minus sign and enter all other values as positive amounts. Round your final answers to nearest whole dollar.)
Use the appropriate Tax Tables and Tax Rate Schedules.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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