Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John L Brown (Social Security number 310 40 1715) is 67 years old and is married to Jackie S Brown (Social Security number 310 50

John L Brown (Social Security number 310 40 1715) is 67 years old and is married to Jackie S Brown (Social Security number 310 50 3333), age 57. The Browns live at 1246 Martin Drive, Atlanta, GA 30039. They file a joint return and have three dependent children (Maria, Michael and Megan). Maria is 10 years (SSN 310 22 4444), Michael is 12 (SSN 310 33 5555), and Megan is 14 (SSN 310 44 6666). Megan appeared in a commercial and earned $15,000 during the year. John and Jackie also provided over 50% of the support for Jackie's cousin, Jeffery, who did not live with them the entire year. All dependents were covered by medical insurance. During the year, John and Jackie had the following transactions. John received $70,000 in salary from Great Steel Company. Withholding for Federal income tax was $18,000. The proper amount of FICA taxes was withheld. John and Jackie received $1,200 of interest on U.S. government bonds and $600 of interest on Atlanta Country Schools Bonds. In the prior year Jackie was involved in an automobile accident and incurred $12,000 of medical expenses. Insurance paid $8,000 of the expenses, and John and Jackie included the remaining $4,000 in the determination of their prior year's taxable income. During the year, Jackie received a settlement from the other driver's insurance company. She received $12,000 for her medical expenses, $65,000 as compensatory damages for physical injury, and $35,000 of punitive damages. Jackie received 10 shares of Internet, Inc., as a stock dividend. The shares received had a fair market value of $360. Jackie had the option of receiving cash equal to the value of the shares for half of the shares. She chose not to receive cash. John paid $6,500 of alimony to his wife, Andrea Wagner (Social Security number 382 80 2691). John and Jackie other expenses were as follows: State income taxes paid and withheld totaled $4,000 Real estate taxes on their principal residence were $3,500. Georgia sales taxes on consumer goods and services equal $3,700. Interest on their principal residence was $3,600. Cash contributions to the church were $2,200. The proper amount of FICA was withheld from the earnings of Michael and Maria. However, no Federal income tax was withheld from their earnings. John and Jackie took the standard deduction in the prior tax year. Prepare the Income tax Return for the current year for the Brown's family. Use Form 1040 and any other related forms.

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

Payroll Accounting 2022

Authors: Bernard J. Bieg, Judith A. Toland

32nd Edition

0357518756, 9780357518755

More Books

Students also viewed these Accounting questions

Question

Use the figure shown to determine the following. CBF BCF B D .

Answered: 1 week ago

Question

How does the concept of hegemony relate to culture?

Answered: 1 week ago