Question
john Williams (age 42) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is 555-94-9358. John?s
john Williams (age 42) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is 555-94-9358. John?s earnings and withholdings as the manager of a local casino for 2015 are:
Earnings from the Lucky Ace Casino | $194,000 |
Federal income tax withheld | 32,000 |
State income tax withheld | 0 |
John?s other income includes interest on a savings account at Nevada National Bank of $13,575.
John pays his ex-wife $4,000 per month. When their 12-year-old child (in the wife?s custody) reaches 18, the payments are reduced to $2,750 per month. His ex-wife?s Social Security number is 554-44-5555.
During the year, John paid the following amounts (all of which can be substantiated):
Credit card interest | 1,760 |
Auto loan interest | 4,300 |
Auto insurance | 900 |
Property taxes on personal residence | 6,300 |
Blue Cross health insurance premiums | 2,800 |
Other medical expenses | 790 |
Income tax preparation fee | 900 |
Charitable contributions: | |
Boy Scouts | 1,350 |
St. Matthews Church | 3,000 |
U. of Nevada (Reno) Medical School | 26,900 |
Nevada Democratic Party | 250 |
Fund-raising dinner for the Reno Auto Museum (value of dinner is $25) | 100 |
John also received the following Form 1098:
Required: Complete John?s federal tax return for 2015. Use Form 1040, Schedule A, and Schedule B, below to complete this tax return. Make realistic assumptions about any missing data.
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