Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 100
(value of dinner is $25)

Complete John's federal tax return for 2015. Use Form 1040, Schedule A, and Schedule B, 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

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

Corporate Financial Reporting And Analysis

Authors: S David Young, Jacob Cohen, Daniel A Bens

4th Edition

111949463X, 9781119494638

Students also viewed these Accounting questions

Question

An action plan is prepared.

Answered: 1 week ago