I used all tax rates from 2014! My question is this right? I am not sure on the taxable income and refund. I tax dividends at 15%.

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, 1964, and Freida was born on August 20, 1965.

During 2014, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home:

Gina, their daughter, age 22, a full-time student, who married on December 21, 2014, has no income of her own and for 2014 did not file a joint return with her husband, Casey, who earned $10,600 during 2014. Gina's Social Security number is 123-45-6788.

Sam, their son, age 20, who had gross income of $6,300 in 2014, dropped out of college in October 2014. He had graduated from high school in May 2014. Sam's Social Security number is 123-45-6787.

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 WJJJ, 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 W2 Forms provided by the employers is presented below. Dan and Freida use the cash method.

Line	Description	Dan	Freida
1	Wages, tips, other compensation	$74,000	$86,000
2	Federal income tax withheld	11,000	12,400
17	State income tax withheld	2,960	3,440

Freida sold a house on December 30, 2014, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W2) on the January 10, 2015 closing date.

Other income (as reported on 1099 Forms) for 2014 consisted of the following:

Dividends on CSX stock (qualified)	$4,200
Interest on savings at Second Bank	1,600
Interest on City of Corbin bonds	900
Interest on First Bank CD	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, 2014. The CD was purchased on October 1, 2012, for $14,995, and the yield to maturity was 3.3%.

Dan received a Schedule K1 from the Falcon Partnership, which showed his distributive share of income as $7,000. In addition to the above information, Dan and Freida's itemized deductions included the following:

Paid on 2014 Kentucky income tax	$ 700
Personal property tax paid	600
Real estate taxes paid	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 2014. Dan and Freida do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%.

Part 1Tax Computation

Compute Dan and Freida's 2014 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Form 1040 and Schedules A, B, and E. Suggested software: H&R BLOCK Tax Software.

I used all the rates for 2014! My question is this right? I was having trouble with taxable income and their refund. I am not sure if those are right. I tax the dividends at 15%.

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, 1964, and Freida was born on August 20, 1965.

During 2014, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home:

Gina, their daughter, age 22, a full-time student, who married on December 21, 2014, has no income of her own and for 2014 did not file a joint return with her husband, Casey, who earned $10,600 during 2014. Gina's Social Security number is 123-45-6788.

Sam, their son, age 20, who had gross income of $6,300 in 2014, dropped out of college in October 2014. He had graduated from high school in May 2014. Sam's Social Security number is 123-45-6787.

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 WJJJ, 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 W2 Forms provided by the employers is presented below. Dan and Freida use the cash method.

Line	Description	Dan	Freida
1	Wages, tips, other compensation	$74,000	$86,000
2	Federal income tax withheld	11,000	12,400
17	State income tax withheld	2,960	3,440

Freida sold a house on December 30, 2014, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W2) on the January 10, 2015 closing date.

Other income (as reported on 1099 Forms) for 2014 consisted of the following:

Dividends on CSX stock (qualified)	$4,200
Interest on savings at Second Bank	1,600
Interest on City of Corbin bonds	900
Interest on First Bank CD	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, 2014. The CD was purchased on October 1, 2012, for $14,995, and the yield to maturity was 3.3%.

Dan received a Schedule K1 from the Falcon Partnership, which showed his distributive share of income as $7,000. In addition to the above information, Dan and Freida's itemized deductions included the following:

Paid on 2014 Kentucky income tax	$ 700
Personal property tax paid	600
Real estate taxes paid	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 2014. Dan and Freida do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%.

Part 1Tax Computation

Compute Dan and Freida's 2014 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Form 1040 and Schedules A, B, and E. Suggested software: H&R BLOCK Tax Software.

1040 Department of the Treasury-Intemal Revenue S Return 2014 (99) U.S. Individual Income Tax OMB No. 1545-0074 RS Use Only-Do not write or staple in this space. See separate instructions For the year Jan Dec. 31, 2014, or other tax year beginning 2014. ending 20 Your social security number Your first name and initial Daniel B lfaj nt return, spouse's first name and initial Freida C 6789 Home address (number and street. If you have a P.O. box, see instructions Apt. no. Make sure the SSN(s) above 625 OAK STREET and on line 6c are correct Presidential Election campaign City, town or post office, state, and ZIP code. f you have a foreign address, also complete spaces below (see instructions Corbin, KY 40701 Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking Foreign country name Foreign province/state/county Foreign postal code a box below will not change your tax or Spouse refund You 1 single 4 0 Head of household (with qualifying person). (See instructions. Filing Status 2 O Married filing jointly (even if only one had income the qualifying perso n is a child but not your dependent, enter this 3 O child's name here. Check only one Married filing separately. Enter spouse's SSN above box. and full name here. 5 O Qualifying widow(e) with dependent child Exemptions ea O Boxes checked Yourself. If someone can claim you as a dependent, do not check box 6a on 6a and 6b b O Spouse No. of children (40 if ch d under age 17 on 6c who c Dependents: (2) Dependent's (3) Dependent's qualifying for child tax cred lived with you Social Security number relationship to you (1) First name Last name (see instructions) did not live with you due to divorce 123 45 6788 Daughter Gina or separation If more than four Samm 123 45 6787 Son (see instructions) dependents, see Dependents on 6c instructions and not entered above check here Add numbers on Total number of exemptions clai ed lines above 160,000 7 Wages, salaries, tips, etc. Attach Fo W-2 Income 1982 8a Taxable interest. Attach Schedule B if required b Tax-exempt interest. Do not include on line 8a 900 8b 1040 Department of the Treasury-Intemal Revenue S Return 2014 (99) U.S. Individual Income Tax OMB No. 1545-0074 RS Use Only-Do not write or staple in this space. See separate instructions For the year Jan Dec. 31, 2014, or other tax year beginning 2014. ending 20 Your social security number Your first name and initial Daniel B lfaj nt return, spouse's first name and initial Freida C 6789 Home address (number and street. If you have a P.O. box, see instructions Apt. no. Make sure the SSN(s) above 625 OAK STREET and on line 6c are correct Presidential Election campaign City, town or post office, state, and ZIP code. f you have a foreign address, also complete spaces below (see instructions Corbin, KY 40701 Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking Foreign country name Foreign province/state/county Foreign postal code a box below will not change your tax or Spouse refund You 1 single 4 0 Head of household (with qualifying person). (See instructions. Filing Status 2 O Married filing jointly (even if only one had income the qualifying perso n is a child but not your dependent, enter this 3 O child's name here. Check only one Married filing separately. Enter spouse's SSN above box. and full name here. 5 O Qualifying widow(e) with dependent child Exemptions ea O Boxes checked Yourself. If someone can claim you as a dependent, do not check box 6a on 6a and 6b b O Spouse No. of children (40 if ch d under age 17 on 6c who c Dependents: (2) Dependent's (3) Dependent's qualifying for child tax cred lived with you Social Security number relationship to you (1) First name Last name (see instructions) did not live with you due to divorce 123 45 6788 Daughter Gina or separation If more than four Samm 123 45 6787 Son (see instructions) dependents, see Dependents on 6c instructions and not entered above check here Add numbers on Total number of exemptions clai ed lines above 160,000 7 Wages, salaries, tips, etc. Attach Fo W-2 Income 1982 8a Taxable interest. Attach Schedule B if required b Tax-exempt interest. Do not include on line 8a 900 8b