Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2019

Authors: Gerald E. Whittenburg, Steven Gill

37th Edition

1337703060, 1337673218, 9781337673211, 978-1337703062

More Books

Students also viewed these Accounting questions

Question

Explain why a demand curve slopes downward.

Answered: 1 week ago