Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66595eb6c2242_98266595eb64ca6e.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66595eb773d2c_98266595eb6f000c.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66595eb81f26c_98366595eb7b3669.jpg)
Transcribed Image Text:
Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1111, and Freida's is 123-45-6789. Dan was born on January 15, 1965, and Freida was born on August 20, 1966. During 2016, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home: a. Gina, their daughter, age 22, a full-time student, who married on December 21, 2016, has no income of her own and for 2016 did not file a joint return with her husband, Casey, who earned $10,600 during 2016. Gina's Social Security number is 123-45-6788. b. Sam, their son, age 20, who had gross income of $6,300 in 2016, dropped out of college in October 2016. He had graduated from high school in May 2016. Sam's Social Security number is 123-45-6787. c. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786. Dan was employed as a manager by W]]], Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, Ky 40701). Selected information from the W-2 Forms provided by the employers is presented below. Dan and Freida use the cash method. Line Description 1 Wages, tips, other compensation $74,000 $86,000 Dan Freida 2 Federal income tax withheld 17 State income tax withheld 11,000 12,400 2,960 3,440 Freida sold a house on December 30, 2016, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10, 2017 closing date. Other income (as reported on 1099 Forms) for 2016 consisted of the following: Dividends on CSX stock (qualified) Interest on savings at Second Bank $4,200 1,600 Interest on City of Corbin bonds Interest on First Bank CD 900 382 The $382 from First Bank was original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2016. The CD was purchased on October 1, 2014, for $14,995, and the yield to maturity was 3.3%. Dan received a Schedule K-1 from the Falcon Partnership, which showed his distributive share of income as $7,000 (non passive income). In addition to the above information, Dan and Freida's itemized deductions included the following: Paid on 2016 Kentucky income tax Personal property tax paid Real estate taxes paid $700 600 1,800 Interest on home mortgage (Corbin S&L) 4,900 Cash contributions to the Boy Scouts 800 Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $8,000. All members of the family had health insurance coverage for all of 2016. Dan and Freida do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%. Required: Compute Dan and Freida's 2016 Federal income tax payable (or refund due). Use Form 1040 and Schedules A, B, E and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. If there is a tax overpayment, the Butlers would like a refund. If additional tax is due, assume no underpayment penalty applies. Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1111, and Freida's is 123-45-6789. Dan was born on January 15, 1965, and Freida was born on August 20, 1966. During 2016, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home: a. Gina, their daughter, age 22, a full-time student, who married on December 21, 2016, has no income of her own and for 2016 did not file a joint return with her husband, Casey, who earned $10,600 during 2016. Gina's Social Security number is 123-45-6788. b. Sam, their son, age 20, who had gross income of $6,300 in 2016, dropped out of college in October 2016. He had graduated from high school in May 2016. Sam's Social Security number is 123-45-6787. c. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786. Dan was employed as a manager by W]]], Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, Ky 40701). Selected information from the W-2 Forms provided by the employers is presented below. Dan and Freida use the cash method. Line Description 1 Wages, tips, other compensation $74,000 $86,000 Dan Freida 2 Federal income tax withheld 17 State income tax withheld 11,000 12,400 2,960 3,440 Freida sold a house on December 30, 2016, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10, 2017 closing date. Other income (as reported on 1099 Forms) for 2016 consisted of the following: Dividends on CSX stock (qualified) Interest on savings at Second Bank $4,200 1,600 Interest on City of Corbin bonds Interest on First Bank CD 900 382 The $382 from First Bank was original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2016. The CD was purchased on October 1, 2014, for $14,995, and the yield to maturity was 3.3%. Dan received a Schedule K-1 from the Falcon Partnership, which showed his distributive share of income as $7,000 (non passive income). In addition to the above information, Dan and Freida's itemized deductions included the following: Paid on 2016 Kentucky income tax Personal property tax paid Real estate taxes paid $700 600 1,800 Interest on home mortgage (Corbin S&L) 4,900 Cash contributions to the Boy Scouts 800 Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $8,000. All members of the family had health insurance coverage for all of 2016. Dan and Freida do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%. Required: Compute Dan and Freida's 2016 Federal income tax payable (or refund due). Use Form 1040 and Schedules A, B, E and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. If there is a tax overpayment, the Butlers would like a refund. If additional tax is due, assume no underpayment penalty applies.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Els Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,038.05 and No. 5893 for $484.25. The fol lowing...
-
Arthur Quillen Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Quillens direct costs and subcontractor costs as well...
-
True or false 18) Perfection standards and ideal standards are different. 13) Ideal standards have an adverse effect on employee motivation. 6) Increased productivity can be shown by maintaining the...
-
Colson Company has a line of credit with Federal Bank. Colson can borrow up to $339,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an...
-
Define Professional Misconduct and state how professional misconduct and professional ethics are related. Give few instances of professional misconduct with case decisions.
-
Discuss the role of leadership in organizational change. You might want to review part of Chapter 12 to refresh your views of leadership. Are there any current examples of leadership and...
-
The financial year of Terrys Tiles Ltd ended on 31 December 20XO. Your auditors report was signed on 26 February and the financial statements were issued on 9 March. Listed below are events that...
-
What are the advantages of the audit of a partnership firm? What special points should be included in the audit report in respect of such an audit?
-
Is the audit of sole-proprietorship business compulsory?
-
[2 marks] a) What do you understand by the term leaching [3 marks] b) Describe how equilibrium can be attained in solid-liquid extraction 3 c) 100 kg solids containing 18 per cent of extractable...
-
Describe briefly what economists call a multitask agency problem, and relate your answer to the case of microfinance. Describe the main tasks taken on by loan officers and how they might conflict or...
-
Grupo Bimbo, Krispy Kreme, and Tastykake are all competitors in the global marketplace. Key comparative figures for Grupo Bimbo (GrupoBimbo.com) for the year ended December 31, 2002 (along with...
-
Describe as many situations as you can in which there is a principal and an agent in the context of microlenders? How do the examples relate to one another? Do the proposed solutions to any one of...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App