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Individual Tax Return Problem 2 Required: Use the following information to complete Johnelle and Latoya Henrys 2019 federal income tax return. If any information is
Individual Tax Return Problem 2
Required:
- Use the following information to complete Johnelle and Latoya Henrys 2019 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps.
- The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms.
Facts:
- Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mothers company, Long-term Investments, Inc., a full-service wealth-planning firm. They provide the following information:
- They both want to contribute to the presidential election campaign.
- They live at 9876 Old Waverly, Charleston, South Carolina 29401.
- Johnelles birthday is 7/17/1965 and his Social Security number is 555-12-6789.
- Latoyas birthday is 9/11/1967 and her Social Security number is 987654321.
- Johnelle and Latoya do not have any foreign bank accounts or trusts.
- Neither Johnelle or Latoya acquired, sold, or exchanged virtual currency in 2019.
- Johnelle received a Form W-2 from Toys Unlimited, Inc. that contained the following information:
| $45,000 |
| 7,500 |
| 45,000 |
| 2,790 |
| 45,000 |
| 653 |
| 2,200 |
- Latoya received a Form W-2 from Long-term Investments, Inc., that contained the following information:
| $85,000 |
| 12,500 |
| 85,000 |
| 5,270 |
| 85,000 |
| 1,233 |
| 4,200 |
- Johnelle and Latoya incurred the following medical expenses for the year:
| 2,000 miles |
| $6,500 |
| 1,750 |
| 2,200 |
| 150 |
| 2,000 |
- Johnelle and Latoya paid $12,000 of interest payments on their primary residence (acquisition debt of $225,000). They also paid $1,750 of interest expense on Latoyas car loan and $500 of interest on their Visa card.
- Johnelle and Latoya paid $4,000 of real estate taxes on their home and $1,000 of real estate tax on a vacant lot they purchased with the hope of building their dream home in the future. They also paid $3,000 in sales tax on Latoyas car and other purchases and $1,000 of ad valorem personal property tax on their cars.
- Johnelle and Latoya made the following contributions this year:
| $ 200 |
| 150 |
| 8,000 |
| 225 |
| 750 |
- Johnelle won $5,000 in the state lottery. He has been playing the lottery for years, spending$10 in lottery tickets every week ($520 in total) and is careful that he saves the old tickets to keep track of the numbers he plays.
- Please provide breakdown of the itemized deduction.
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