Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a
Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in the home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel's support. Rhonda also provided the following information Rhonda does not want to contribute to the presidential election campaign Rhonda lives at 1234 Blue Ridge Way, Tulsa, Oklahoma 74101 Rhonda's birthday is 12/18/1950 and her Social Security number is 335-67-8910. Mabel's birthday is 11/2/1942 and her Social Security number is 566-77-8899. Rhonda does not have any foreign bank accounts or trusts Rhonda has qualifying insurance for purposes of the Affordable Care Act (ACA) 2. Rhonda received a Form W-2 from Carter and Associates (her employer) that contained the following information Line 1 Wages, tips, other compensation $72,000 Line 2 Federal income tax withheld 9,300 72,000 Line 3 Social Security wages Line 4 Social Security tax withheld 4,464 72,000 Line 5 Medicare wages and tips Line 6 Medicare tax withheld 1,044 Line 16 State wages, tips, etc 72,000 Line 17 State income tax 2,700 Carter and Associates address is 1234 CPA Way Tulsa, Oklahoma 74101; its FEIN is 91:0001002; and its State ID number is 123456678 3. Rhonda received $250 in interest from Tulsa City bonds, $120 interest from IBM bonds, and $15 from her savings account at UCU Credit Union. She also received a $460 dividend from Huggies Company and $500 from Bicker Corporation. Both dividends are qualified dividends. 4. Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2015. She purchased the stock on December 12, 2010, for $10 a share. She also sold 50 shares of RSA stock for $15 a share on October 2, 2015. She purchased the stock for $65 a share on February 2, 2015. Stock basis amounts have been reported to the IRS 5. The following is a record of the medical expenses that Rhonda paid for herself during the year. The amounts reported are amounts she paid in excess of insurance reimbursements. Rhonda drove 210 miles for medical purposes in 2015 Insurance premiums $3,700 Prescription medications 100 Over-the-counter medications 250 Doctor and dentist visits 1,450 Eyeglasses 300 Physical therapy 200 Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in the home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel's support. Rhonda also provided the following information Rhonda does not want to contribute to the presidential election campaign Rhonda lives at 1234 Blue Ridge Way, Tulsa, Oklahoma 74101 Rhonda's birthday is 12/18/1950 and her Social Security number is 335-67-8910. Mabel's birthday is 11/2/1942 and her Social Security number is 566-77-8899. Rhonda does not have any foreign bank accounts or trusts Rhonda has qualifying insurance for purposes of the Affordable Care Act (ACA) 2. Rhonda received a Form W-2 from Carter and Associates (her employer) that contained the following information Line 1 Wages, tips, other compensation $72,000 Line 2 Federal income tax withheld 9,300 72,000 Line 3 Social Security wages Line 4 Social Security tax withheld 4,464 72,000 Line 5 Medicare wages and tips Line 6 Medicare tax withheld 1,044 Line 16 State wages, tips, etc 72,000 Line 17 State income tax 2,700 Carter and Associates address is 1234 CPA Way Tulsa, Oklahoma 74101; its FEIN is 91:0001002; and its State ID number is 123456678 3. Rhonda received $250 in interest from Tulsa City bonds, $120 interest from IBM bonds, and $15 from her savings account at UCU Credit Union. She also received a $460 dividend from Huggies Company and $500 from Bicker Corporation. Both dividends are qualified dividends. 4. Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2015. She purchased the stock on December 12, 2010, for $10 a share. She also sold 50 shares of RSA stock for $15 a share on October 2, 2015. She purchased the stock for $65 a share on February 2, 2015. Stock basis amounts have been reported to the IRS 5. The following is a record of the medical expenses that Rhonda paid for herself during the year. The amounts reported are amounts she paid in excess of insurance reimbursements. Rhonda drove 210 miles for medical purposes in 2015 Insurance premiums $3,700 Prescription medications 100 Over-the-counter medications 250 Doctor and dentist visits 1,450 Eyeglasses 300 Physical therapy 200
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