Question
John Williams (birthdate August 2, 1974) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is
John Williams (birthdate August 2, 1974) 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 2016 are reported on his Form W-2:
John?s other income includes interest on a savings account at Nevada National Bank of $13,575.
John pays his ex-wife, Sarah McLoughlin, $4,000 per month. When their 12-yearold 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.
In 2016, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,560, which exceeds the estimated amount per the IRS tables.
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
2,640
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
3,100
- 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 2016. UseForm 1040, Schedule A, and Schedule B, to complete this tax return. Make realistic assumptions about any missing data.
John Williams (birthdate August 2, 1974) 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 2016 are reported on his Form W-2: John's other income includes interest on a savings account at Nevada National Bank of $13,575. John pays his ex-wife, Sarah McLoughlin, $4,000 per month. When their 12yearold 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. In 2016, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,560, which exceeds the estimated amount per the IRS tables. During the year, John paid the following amounts (all of which can be substantiated): Credit card interest Auto loan interest Auto insurance Property taxes on personal residence Blue Cross health insurance premiums Other medical expenses Income tax preparation fee Charitable contributions: Boy Scouts St. Matthews Church U. of Nevada (Reno) Medical School Nevada Democratic Party Fund-raising dinner for the Reno Auto Museum (value of dinner is $25) John also received the following Form 1098: $1,76 0 4,300 900 2,640 2,800 790 900 1,350 3,100 26,90 0 250 100 Required: Complete John's federal tax return for 2016. Use Form 1040, Schedule A, and Schedule B, to complete this tax return. Make realistic assumptions about any missing dataStep by Step Solution
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