George Large (SSN 000-11-111) and his wife Marge Large (SSN 000-22-222) live at 2000 Lakeview Drive,Cleveland, OH 4901 and want you to prepare their 2014 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employer business expense. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car 24,000 miles during the year, and he placed the car in service on June 1, 2012. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. Assume his business miles were driven evenly during the year. George is a collegel basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodgoing $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home, which is 25% of the house's square footage. The business code is 811490. She had the following income and expenses: Income from rubber toy boat repairs $15,000 Cost of suppliers 5,000 Contract labor 3,500 Long-distance phone calls (business) 500 The Large's home cost a total of $150,000, of which the cost of the land was $20,000. The FMV of the house is $225,000. The house is depreciable over a 39-year recovery period. The Larges incurred other expenses: Utility bills for the house $2,000 Real estate taxes 2,500 Mortgage interest 4,500 Cash charitable contributions 3,500

We must complete this formula using the tax formula:

The formula used to calculate your taxes

Earned income (W-2 or 1099-MISC)

+ Interest and dividends (Schedule B, 1099-INT, 1099-DIV)

+ Taxable refunds (1099-G)

+ Alimony received

+ Net business income (Schedule C)

+ Capital gains and losses (Schedule D, 1099-B, 1099-S)

+ IRA and pension distributions (1099-R)

+ Rents and other income (Schedule E, Schedule K-1)

+ Social Security benefits subject to tax -------------------------

= Total income

- IRA, Keogh and SEP retirement account deductions

- Job-related moving expenses

- Half of self-employment tax, self-employed insurance

- Alimony paid

------------------------- = Adjusted gross income (AGI) a very important number!

- Deductions (Schedule A, 1098)

- Exemptions

------------------------- = Taxable income

------------------------- = Tenative tax liability

- Tax credits (child care credit, foreign tax credit etc.)

+ Other taxes (self-employment tax, household employment taxes, alternative minimum tax etc.)

------------------------- = Tax liability

- Tax withheld

- Estimated tax payments

- Earned income credit

------------------------- = Refund or amount you owe

CANNOT USE TAX FORMS TO COMPLETE THE PROBLEM MUST USE TAX FORMULA AND COMPUTE BY HAND FOR TAX YEAR 2012

Please help - Just trying to make sure I computed the problem correctly! Thanks!