Question
James and Esther Johnson live at 45678 S.W. 112th Street, Homestead, FL 33033. James, who is 67 years old (date of birth 12/14/1950), is retired
James and Esther Johnson live at 45678 S.W. 112th Street, Homestead, FL 33033. James, who is 67 years old (date of birth 12/14/1950), is retired receiving social security benefits and Esther, who is 66 years old (date of birth 06/11/1951), is also retired but working on a part-time basis. Their social security numbers are 412-34-5670 and 412-34-5671, respectively. The Johnsons had qualifying health care coverage at all times during the tax year. Annual social security income for Jim is $18,000 (SSA-1099, box 5) and for Esther is $10,800 (SSA-1099, box 5). Interest received by them from Central Bank is $2,545 (1099-INT, box 1). No income tax withholding was made. Esther is working part-time as an interior decorator as an employee of Decorating House, a corporation. Her form W-2 shows the following information:
Wages | = | $ | 15,000.00 | |
Federal W/H | = | $ | 1,500.00 | |
Social security wages | = | $ | 15,000.00 | |
Social security W/H | = | $ | 930.00 | |
Medicare wages | = | $ | 15,000.00 | |
Medicare W/H | = | $ | 217.50 |
Their itemized deductions are as follows:
Mortgage interest on their main home = $8,100
Real estate taxes = $5,600
Personal property taxes = $185
Doctors' expenses unreimbursed by insurance = $5,400
Medical insurance premiums for the year = $2,400
Prescribed medicine = $1,995
Vitamins = $300
Total cash contributions to their church, $675. The contributions were made over the course of the year and no individual contribution was greater than $250.
Tax preparation fees for their 2016 return, $325, paid in 2017.
Lottery tickets bought by Esther during the year, $750. Winnings received, $940 (W-2G, box 1). Income tax withholding on winnings, $35 (W-2G, box 4).
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