Question
Lou and Joann Girardi are married and file a joint return. They recently bought a new home on 21680 Skyline Drive, Henderson, NV 89077. Their
Lou and Joann Girardi are married and file a joint return. They recently bought a new home
on 21680 Skyline Drive, Henderson, NV 89077. Their son, Stuart, attends the University of
Pennsylvania full-time. Stuart is claimed as a dependent on the Girardis tax return. Their
SSNs are Lou, 412-34-5670; Joann, 412-34-5671; and Stuart, 412-34-5672. Their birth dates
are as follows: Lou, May 18, 1962; Joann, December 24, 1962; and Stuart, May 9, 1995. Their
relevant tax information follows:
Lou is an attorney and owns his law firm, which is operating as an S corporation. His W-2
information and Schedule K-1 from his law firm are as follows:
| Wages (box 1) | = | $ 114,800.50 |
| Federal W/H (box 2) | = | $ 15,000.14 |
| Social security wages (box 3) | = | $ 114,800.50 |
| Social security W/H (box 4) | = | $ 7,117.63 |
| Medicare wages (box 5) | = | $ 114,800.50 |
| Medicare W/H (box 6) | = | $ 1,664.61 |
Schedule K-1 from the law offices of Lou Girardi:
Line 1 = $22,582.00 (ordinary business income)
Line 11 = $22,582.00 ( 179 deduction)
Joann is a full-time lecturer at Arizona State University. Her W-2 information from ASU is as follows:
| Wages (box 1) | = | $ 65,000.00 |
| Federal W/H (box 2) | = | $ 9,950.25 |
| Social security wages (box 3) | = | $ 65,000.00 |
| Social security W/H (box 4) | = | $ 4,030.00 |
| Medicare wages (box 5) | = | $ 65,000.00 |
| Medicare W/H (box 6) | = | $ 942.50 |
The following are other income and expenses they received and incurred during the year:
| Income | ||
| Dividend (Ordinary) | $ 666 | |
| Dividend (Qualified) | 666 | |
| Interest | 765 | |
| Expenses | ||
| Real estate taxes | 7,836 | |
| Mortgage interest | 32,562 | |
| Charitable contribution | 2, 598 | |
| Tuition to University of Pennsylvania | 28,950 | |
Prepare the Girardis federal tax return for 2014. Use Form 1040,4562, Schedules A, and E worksheet. Assume that the Girardis do not qualify for any credits
(although they may). For any missing information, make reasonable assumptions. (Assume no
AMT although it may apply; Form 6251 or the AMT calculation is not required.)
Note: Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Input all the values as positive numbers.
Use the appropriate Tax Tables or Tax Rate Schedules.
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
