Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During 2019, Jason and Vicki Hurting, who are married with two children and filing jointly, had the following tax information. Jason owns a cash-basis landscaping

During 2019, Jason and Vicki Hurting, who are married with two children and filing jointly, had the following tax information. Jason owns a cash-basis landscaping business, and Vicki works as a sales executive for a manufacturing business. Jason (SSN 412-34-5670) and Vicki (SSN 412-34-5671) reside at 123 Bate Street, Bright, AL 36116. Both children are under the age of 17: Jason Jr. (412-34-5672), date of birth 7/20/11 Catlin (412-34-5673), date of birth 1/08/15 Vickis W-2 information is as follows:

Wages $ 94,000
Federal withholding 22,000
Social security wages 94,000
Social security withholding 5,828
Medicare withholding 1,363
State withholding 4,700
Other income:
1099-G Alabama state tax refund is taxable because $4,700 was deducted on last years return $ 423
1099-INT First Bank of Alabama 225
1099-DIV IBM, Inc.Ordinary dividends 125
Qualified dividends 125

Jasons landscaping business (business code 811490):

Revenue $ 153,000
Wages 41,600
Payroll tax 3,182
Cell phone charge 425
Assets ( 179 elected)

Item Date Purchased Business Use Amount Percentage
Truck (100% business) 2/05/19 $ 28,000 100 %
Mower 1 3/08/19 12,000 100
Mower 2 3/08/19 3,400 100
Equipment 6/25/19 1,595 100

The truck was over 6,000 lbs. The Hurtings had the following itemized deductions:

State income tax withholding (from above) $ 4,700
Real estate tax 2,100
Personal property tax 425
Mortgage interest 8,300
Charitable contributions 2,400

The Hurtings made four federal estimated payments of $2,500 each on their due dates.

Required:

Prepare Form 1040 plus appropriate schedules for the Hurtings for 2019. The Hurtings had qualifying health care coverage at all times during the tax year. Use the appropriate Tax Rate Schedules.

Please use Forms: 1040 PG 1, 1040 PG 2, Schedule 1, Schedule 2, Schedule 3, Schedule C PG 1, Schedule C PG 2, Schedule SE, and Form 4562 (List the names of the taxpayers in the order in which they appear in the problem. Enter the required information in the Dependents section in a chronological order of "Dependent's social security number". Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

tell all in detail

Answered: 1 week ago