Please show all computations in legible form.

Sara Williams (age 42) is not married but supports her 5-year-old daughter. They live at 1324 Forest Drive, Reno, NJ 89501 which is owned by Sara. Saras earnings and withholding as the manager of a local casino for 2017 are as follows:

Gross annual earnings from the lucky Ace Casino $185,000

(this amount is before any employee contributions for fringe benefits)

Federal income Tax withheld $49,800

State Income Tax withheld $8,200

Sara participates in Lucky Ace Casinos employer-sponsored health insurance plan. Her premiums of $7200 were withheld from her salary pre-tax. Sara is also eligible for the retirement plan and contributed $5,000 of her salary and the casino matched the contribution in the amount of $2,500.

Sara also receives a 25% discount in the shops owned by the casino. This includes the clothing stores, gift shops and jewelry store. Sara used the discount to save $850 this year for personal items and gifts. All employers are eligible for this benefit and the discount is than the mark-up.

Sara also was able to book a vacation at the casinos property in Cancun, Mexico. She spent 7 days at the property and did not have to pay for a hotel room since the Cancun casino had vacancy. The cost of the hotel would have been $2,000. Her boss also paid for the meals during the time of her stay in the amount of $1,800.

Sara has other income, which includes qualifying dividends on New Jersey Light & Power stock of $ 2,500 and interest on a savings account at New Jersey National Bank of $5,575. She received the stock from her dad this past year when he passed away. The value of the stock was $ 125,000 but was originally purchased for $22,000.

Sara entered a drawing and received 10 gift certificates each valued at $100.00 to local merchants. Sara received all the certificates in December of 2017 but did not use them until the next year.

Sara decided that she needed to ensure her employment and decided on taking a training course for managers. The casino thought it was a great idea but would only reimburse her $500 for the cost of the course. The tuition for the course was $2,700 but Sara felt that it would be worth the investment and paid for the training out of her own pocket ($ 2,200). It actually paid off because at the end if the year, Sara received a bonus of $ 5,000 for job performance. (The bonus is included in the gross annual earnings amount of $185,000.)

Sara owns a property in Las Vegas that was rented by a retired couple for the year. They pay a monthly rent of $1,400. Sara had the following annual expenses:

Mtg. Interests $8,000

Real estate Taxes $1,500

Utilities & Insurance $1,850

During the year, Sara had additional expenses for the year (all of which can be substantiated):

Home Mortgage Interest $19,700

Credit Card Interest $1,760

Auto Loan Interest $4,300

Auto Insurance $900

Real Estate Taxes on

Personal Residence $6,200

Real Estate Taxes

For her brothers property $2,000(she paid them when visiting her brother)

Co-payments and prescriptions $790

Over-the-Counter Medications $275

Income Taxes Prep $700

Safe Deposit Box $45

Certified Financial Planner $300

Casino Executives Institute Dues $350

Tennis Club Dues $300

Charitable Contributions:

Boy Scouts $800

St. Matthew School for Boys $300

U. of Nevada Med. School $1000

Nevada Democratic Party $500

Required: Compute the following information for Sara showing all computations:

AGI _________________________________________________

TAXABLE INCOME __________________________________________________

TAX LIABILITY __________________________________________________

AMOUNT DUE OR REFUND ________________________________________________