Question
LEO Doe is divorced and has the following tax information for 2015. LEO's address is 123 Main Street, Annapolis, MD. 12345 LEO's social security number
LEO Doe is divorced and has the following tax information for 2015.
LEO's address is 123 Main Street, Annapolis, MD. 12345
LEO's social security number is 123-45-6789.
LEO's 9 year old son (GEO) lives with him year-round and LEO has sole custody. GEO's social security number is 987-65-4321. LEO claims the exemption for his son.
LEO's occupation is a photographer.
Wages
LEO's 2015 wage was $50,000.
Federal taxes withheld was $6,000
State taxes withheld was $3,000
Other income
Interest earned on bank account = $50
LEO was laid-off in the second half of the year. After being laid off, LEO received Unemployment Compensation of $4,000 for three months. (No taxes were withheld).
After unemployment compensation ended, LEO performed several freelance photography jobs out of his home. He earned $2,000. He only tracked two expenses. He drove his car 400 miles related to the photography jobs. Supplies were $300. (You may ignore self-employment taxes).
IRA and other expenses
Contributed to a Roth IRA = $4,000
Mortgage interest = $7,900
Property tax on home = $2,200
Church donations = $2,100
Clothing and housewares donated to Goodwill = $100
LEO and GEO medical expenses = $1,100
LEO gave his mother $1,000 to help her with medical expenses
Pet food and veterinary expenses = $400
Tax preparation fee = $300
GEO's before/after school child care expenses = Zero. His grandparents take care of him during this time.
In 2015, LEOs motorcycle was stolen. LEO paid $2,000 for the motorcycle on 1/1/2010. It has a fair market value of $800 when stolen. The motorcycle was not insured. It was used personally - not for business.
Complete Form 1040 (pages 1 and 2), Schedule A, Schedule C, and Form 4684.
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