Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John Raymond (age 73) and his wife Martina (age 53) will be filing a joint tax return in 2019. John recently became divorced in March

John Raymond (age 73) and his wife Martina (age 53) will be filing a joint tax return in 2019. John recently became divorced in March 2019 and married Martina on October 5, 2019. Martina was divorced in 2016 and has custody of her two daughters, Brenda (age 14) and (Wendy (age 19) from her previous marriage.

John retired in 2018 from Southern Company, where he had been a Senior VP of Engineering. He now currently does some part-time contract-work for several, small engineering firms in Atlanta, when he is not playing golf. Martina is currently employed as a stewardess working for Delta.

Other information to be read in connection with Johns Excel sheet:

  1. Note that most, but not all, of the dividends are Qualified Dividends.
  2. $4,000 of the $130,000 Pension that John received from Southern Co.is considered to be from non-deductible contributions that John made during his working years at Southern Co.
  3. Because John is over age 72, he must take a Required Minimum Distribution (RMD) from his IRA during 2019. His RMD amount is $78,500 and John is planning to take his entire distribution in December.
  4. John receives $36,000 ($3,000 per month) from the Social Security Administration.
  5. John earned $17,500 from his part-time engineering contract work and had $5,782 in supportable business expenses. His net profit from his self-employment activity was $11,718.
  6. As part of his divorce settlement, John must pay his ex-wife $1,250 per month in alimony. For 2019, he will pay her $11,250 ($1,250 x 9 months).
  7. Martina received $33,000 as part of her divorce settlement as a combination of alimony and child support. She received $3,000 each month until she re-married ($3,000 x Jan-Sept.), after which her payment was reduced and she received $2,000 per month ($2,000 x Oct-Dec.).
  8. John has committed to make a $50,000 contribution to Vanderbilt University, his alma mater, and will have a small conference room in the new library named in his honor. He plans to visit the campus and make his contribution over the upcoming Christmas holidays.
  9. John and his family must purchase their own medical insurance. Neither Southern or Delta offer plans to cover them.

Form a tax return for John Raymond given this information and using (https://www.chegg.com/homework-help/questions-and-answers/raymond-income-deductions-projected-2019-80-000-59-5-685-2-029-71-2-750-wages-delta-intere-q45679326)

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

The Birth Of American Accountancy

Authors: Peter L. McMickle, Paul H. Jensen

1st Edition

0367534681, 9780367534684

More Books

Students also viewed these Accounting questions