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How do you account for each of the following transactions on a 2018 tax return for a married couple filing jointly? Jose (SSN 150-45-6789) and
How do you account for each of the following transactions on a 2018 tax return for a married couple filing jointly?
Jose (SSN 150-45-6789) and Rosanna (SSN 123-45-7890) Martinez are a married couple who reside at 1234 University Drive in Coral Gables, FL 33146. They have two children: Carmen, age 19 (SSN 234-65-4321), and Greg, age 10 (SSN 234-65-5432). Carmen is a full-time student at the local univer- sity; she lives at home and commutes to school. Jose is an architect for Deco Design Architects and is covered by his employer's defined benefit pension plan. His Form W-2 XXO reported the following information: 65,000 65,000 Wages Federal income tax withheld$6,100.00 Social Security wages 65,000 Social Security tax withhed ,030.00 942.50 Medicare wages Medicare tax withheld Rosanna was a loan officer at BankOne until October of the current year. Her Form W-2 NX0X reported the following information: Wages 43,000 Federal income tax withheld $3,000.00 Social Security wages 43,000Social Security tax withheld 2,666.00 623.50 Medicare wages 3,000 Medicare tax withheld Rosanna's employer does not provide any retirement plan for its employees. Jose and Rosanna received $3,500 of interest income from BankOne and $130 of qualified dividend income on Microserf stock (reported in boxes la and 1b on Form 1099-DIV). On November 10, they sold 1,000 shares of Dotcom stock for $925. They had purchased the Dotcom stock last year on October 2 for $4,900. On September 12, they sold 800 shares of Microserf stock for $3,800. They had purchased the Microserf stock three years ago on April 22 for $3,050. The proceeds from these sales were reported on the Form 1099-B they received from their broker, this statement reported the basis for the Dotcom stock but basis was not reported for the Microserf stock. Rosanna received $45 in jury duty pay in May The Martinez family has medical insurance that they purchase through the cafeteria plan offered by Jose's employer (on a pre-tax basis). The annual cost of this medical insurance for the entire family was $3,600. Martinez family also paid $12,300 for qualified medical expenses for which they received no insurance reimbursements. The Martinez family paid $9,400 in interest on their home mortgage (which Overmight Mort- gage Company reported to them on Form 1098). The Martinez family also owns a vacation home in Breckenridge, Colorado, for which they paid $4,100 of mortgage interest. (This is qualified mortgage interest for a second home.) Other interest paid by Jose and Rosanna includes $1,100 for a loan on their personal automobile and $400 on credit cards. Jose (SSN 150-45-6789) and Rosanna (SSN 123-45-7890) Martinez are a married couple who reside at 1234 University Drive in Coral Gables, FL 33146. They have two children: Carmen, age 19 (SSN 234-65-4321), and Greg, age 10 (SSN 234-65-5432). Carmen is a full-time student at the local univer- sity; she lives at home and commutes to school. Jose is an architect for Deco Design Architects and is covered by his employer's defined benefit pension plan. His Form W-2 XXO reported the following information: 65,000 65,000 Wages Federal income tax withheld$6,100.00 Social Security wages 65,000 Social Security tax withhed ,030.00 942.50 Medicare wages Medicare tax withheld Rosanna was a loan officer at BankOne until October of the current year. Her Form W-2 NX0X reported the following information: Wages 43,000 Federal income tax withheld $3,000.00 Social Security wages 43,000Social Security tax withheld 2,666.00 623.50 Medicare wages 3,000 Medicare tax withheld Rosanna's employer does not provide any retirement plan for its employees. Jose and Rosanna received $3,500 of interest income from BankOne and $130 of qualified dividend income on Microserf stock (reported in boxes la and 1b on Form 1099-DIV). On November 10, they sold 1,000 shares of Dotcom stock for $925. They had purchased the Dotcom stock last year on October 2 for $4,900. On September 12, they sold 800 shares of Microserf stock for $3,800. They had purchased the Microserf stock three years ago on April 22 for $3,050. The proceeds from these sales were reported on the Form 1099-B they received from their broker, this statement reported the basis for the Dotcom stock but basis was not reported for the Microserf stock. Rosanna received $45 in jury duty pay in May The Martinez family has medical insurance that they purchase through the cafeteria plan offered by Jose's employer (on a pre-tax basis). The annual cost of this medical insurance for the entire family was $3,600. Martinez family also paid $12,300 for qualified medical expenses for which they received no insurance reimbursements. The Martinez family paid $9,400 in interest on their home mortgage (which Overmight Mort- gage Company reported to them on Form 1098). The Martinez family also owns a vacation home in Breckenridge, Colorado, for which they paid $4,100 of mortgage interest. (This is qualified mortgage interest for a second home.) Other interest paid by Jose and Rosanna includes $1,100 for a loan on their personal automobile and $400 on credit cardsStep by Step Solution
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