Question
James Reynolds (SSN 434-44-4300){DOB 06-20-1969} and Carol Reynolds (SSN 433-43-4400) [DOB 03-18-1972] are husband and wife and file a joint return. They live at 7843
James Reynolds (SSN 434-44-4300){DOB 06-20-1969} and Carol Reynolds (SSN 433-43-4400) [DOB 03-18-1972] are husband and wife and file a joint return. They live at 7843 Campus Road, Sacramento, CA 95823. They fully support their daughter Alicia (SSN 435-45-45000 [DOB 04-16-1996] who attends UC Davis full-time as a medical student. They also have a son Joseph (SSN 436-46-4600) [DOB 03-02-2000]. James and Carol furnish all of the support of Grace (Carol's grandmother) (SSN 437-47-4700) [DOB 01-30-1937] and lives in an assisted living facility
Alicia recieves a $3,540 scholarship covering her room and board.
James recieved a W-2 from Quality Products Inc.
Gross Wages | $125,000.00 |
Federal Income Tax WIthheld | 16,650.00 |
Social Securtiy Tax | 4,485.60 |
Medicare Tax Withheld | 1,812.50 |
State Income Tax Withheld | 6,385.00 |
SDI WIthheld | 960.68 |
Interest Income: | |
Bank of America | $ 975 |
State of California interest on income tax refund | 15 |
State of Georgia Bonds | 435 |
Sacramento City school bonds | 845 |
Interest from US Treasury bonds | 320 |
Dividends: | |
Alpha Mutual Fund (qualifying dividends of 1,500 included) | 2,250 |
Bayer Company (all are qualifying dividends) | 750 |
2015 federal income tax refund recieved in 2017 | 2,750 |
2015 state income tax refund recieved in 2017 | 325 |
[They itemized in 2015 and 2016] | |
California lottery winnings | 1,500 |
Texas lottery winnings | 750 |
Casino slot winnings | 5,250 |
Unemployment compensation - Carol | 17,350 |
Mortgage interest on personal residence | $16,250 |
Interest on motor home | 4,345 |
Doctors fees for cosmetic surgery | 7,500 |
Dentist fees | 2,500 |
Prescribed vitamins | 120 |
Medical insurance | 9,450 |
Property taxes | 5,450 |
DMV fees on motor home [tax portion] | 1,250 |
DMV fees on family auto [tax portion] | 525 |
Doctor bills for grandmother | 3,200 |
Hospital bills for grandmother | 11,500 |
Wheelchair for grandmother | 125 |
Property taxes on boat | 675 |
Interest on personal credit cards | 435 |
Interest on loan to buy school bonds | 225 |
Interest on loan to buy stocks | 300 |
Cash contributions to church | 5,000 |
Cash contributions to homeless family | 25 |
Gambling losses | 6,500 |
Contributions of furniture to Goodwill - cost basis | 7,500 |
Contrtibutions of furniture to Goodwill - fair market value | 650 |
Tax return preparation fee | 650 |
The family had health insurance coverage for the current tax year
Goodwill address is 8735 Cosumnes River Parkway, Sacramento, CA 95823
Required:
Prepare 2017 Federal and California income tax returns including all appropriate forms and schedules. They do not want to contribute to the presidential election campaign and do not want to be a third party designee.
For any missing information, make reasonable assumptions and then document them when submitting the return.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started