Martin S. Albert (Social Security number 111-11-111) is 39 years old and is married to Michele R. Albert

Number 59 Part 1

AM Aid Society, e receives a salary of e taxes and $2,400 hey receive a $1,900 refund (Federal I.D. No. 98-10) him with group term life insurall withheld $24,900 for Federal income taxes and proper amounts were withheld for FICA taxes. hool and is employed by Legal Aid S. Beulah recently graduated from law school and is employed by Legal Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes for state income taxes. The proper amounts were withheld for FICA taya Alfred and Beulah had interest income of $500. They receive a on their 2017 state income taxes. They itemized deductions on their 2 income tax return (total of $15,000). Alfred and Beulah pay $4,500 $1,450 property taxes on their personal residence in 2018. Their char butions total $2,400 (all to their church). They paid sales taxes of $1,400 on their 2017 Federal av $4,500 interest and Their charitable contri- ses of $1,400, for which for all months of 2018 due) for 2018. Suggested software: they maintain the receipts. Both spouses had health insurance for all mont and do not want to contribute to the Presidential Election Campaign. Compute the Olds' net tax payable (or refund due) for 2018. Suggested soft ProConnect Tax Online. blem 59. Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married aking Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferr Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene's Social Security number is 123-45-6788, and Jordan's Social Security number is 123-45-6787. In 2019, Martin and Michele had the following transactions: tions a. Martin received $120,000 in salary from Red Steel Corporation, where he is a con- struction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: $7,049 ($113,700 X 6.2% for Social Security and $1,740 ($120,000 X 1.45%) for Medicare. Martin worked in Mexico from January 1, 2018, until February 15, 2019. His $120,000 salary for 2019 includes $18,000 he earned for January and one-half of February 2019 while working in Mexico. CHAPTER 5 Gross Income: stin and Michele received $400 interest on Montgomery County (Virginia) b. Martin and Mid school bonds. c. Martin received $23 d. Michele received 50 received $2,300 interest from a Bahamian bank account. le received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele eived them, and she did not have the option of receiving cash. tin and Michele received a $1,200 refund on their 2018 Virginia income taxes. Their itemized deductions in 2018 totaled $34,000. E Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016. a Martin and Michele kept the receipts for their sales taxes paid of $1,100. h. Martin and Michele's itemized deductions were as follows: State income tax paid and withheld totaled $5,100. Real estate taxes on their principal residence were $3,700. Mortgage interest on their principal residence was $2,500. Cash contributions to the church totaled $2,800. Part 1Tax Computation Compute the Alberts' net tax payable (or refund due) for 2019. Part 2-Tax Planning The Alberts are considering buying another house. Their house mortgage payments would increase by $500 (to $1,500 per month, which includes a $250 increase in interest and a $100 increase in property tax. The Alberts would like to know how much the mortgage payments would increase net of any change in their income tax. Write a letter to the Alberts that contains your advice. Re Solutions to the Research Problems can be prepared by using the Thomson euters Checkpoint online tax research database, which accompan Solutions can also be prepared by using research materials found in a typical tax library. earch Problem 1. Murray reported to the Environmental Protection Agency that employer was illegally dumping chemicals into a river. His charges were true, nyer was fined. In retaliation, Murray's employer fired him and mining other employment. Murray AM Aid Society, e receives a salary of e taxes and $2,400 hey receive a $1,900 refund (Federal I.D. No. 98-10) him with group term life insurall withheld $24,900 for Federal income taxes and proper amounts were withheld for FICA taxes. hool and is employed by Legal Aid S. Beulah recently graduated from law school and is employed by Legal Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes for state income taxes. The proper amounts were withheld for FICA taya Alfred and Beulah had interest income of $500. They receive a on their 2017 state income taxes. They itemized deductions on their 2 income tax return (total of $15,000). Alfred and Beulah pay $4,500 $1,450 property taxes on their personal residence in 2018. Their char butions total $2,400 (all to their church). They paid sales taxes of $1,400 on their 2017 Federal av $4,500 interest and Their charitable contri- ses of $1,400, for which for all months of 2018 due) for 2018. Suggested software: they maintain the receipts. Both spouses had health insurance for all mont and do not want to contribute to the Presidential Election Campaign. Compute the Olds' net tax payable (or refund due) for 2018. Suggested soft ProConnect Tax Online. blem 59. Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married aking Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferr Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene's Social Security number is 123-45-6788, and Jordan's Social Security number is 123-45-6787. In 2019, Martin and Michele had the following transactions: tions a. Martin received $120,000 in salary from Red Steel Corporation, where he is a con- struction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: $7,049 ($113,700 X 6.2% for Social Security and $1,740 ($120,000 X 1.45%) for Medicare. Martin worked in Mexico from January 1, 2018, until February 15, 2019. His $120,000 salary for 2019 includes $18,000 he earned for January and one-half of February 2019 while working in Mexico. CHAPTER 5 Gross Income: stin and Michele received $400 interest on Montgomery County (Virginia) b. Martin and Mid school bonds. c. Martin received $23 d. Michele received 50 received $2,300 interest from a Bahamian bank account. le received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele eived them, and she did not have the option of receiving cash. tin and Michele received a $1,200 refund on their 2018 Virginia income taxes. Their itemized deductions in 2018 totaled $34,000. E Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016. a Martin and Michele kept the receipts for their sales taxes paid of $1,100. h. Martin and Michele's itemized deductions were as follows: State income tax paid and withheld totaled $5,100. Real estate taxes on their principal residence were $3,700. Mortgage interest on their principal residence was $2,500. Cash contributions to the church totaled $2,800. Part 1Tax Computation Compute the Alberts' net tax payable (or refund due) for 2019. Part 2-Tax Planning The Alberts are considering buying another house. Their house mortgage payments would increase by $500 (to $1,500 per month, which includes a $250 increase in interest and a $100 increase in property tax. The Alberts would like to know how much the mortgage payments would increase net of any change in their income tax. Write a letter to the Alberts that contains your advice. Re Solutions to the Research Problems can be prepared by using the Thomson euters Checkpoint online tax research database, which accompan Solutions can also be prepared by using research materials found in a typical tax library. earch Problem 1. Murray reported to the Environmental Protection Agency that employer was illegally dumping chemicals into a river. His charges were true, nyer was fined. In retaliation, Murray's employer fired him and mining other employment. Murray