Question
Please show all work. 70. Shuana Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her
Please show all work.
70. Shuana Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for thus year. She correctly calculated her AGI. Hoever, she wasn't sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income.
a) Shauana paid $4,676 for medical expenses for care from a broken ankle. Also, shauna's boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle.
b) Shauna paid a total of $3,400 in health insurance premums during the year (not through an exhange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and she paid $3,000 for the surgery (she received no insurance reimbursement). She also incurred $450 of other medical expenses for the year.
c)SD withheld $1,800 of state income tax, $7,495 of social security tax, and $14,500 of federal income tax from Shauna's paychecks throughout the year.
D) In 2015, Shauna was due a refund of $250 for overpaying her 2014 state taxes. On her 2014 stat tax return that she filed in april 2015, she applied the overpayment toward her 2015 state tax liability. She estimated that her state tax liability for 2015 will be $2,300.
e) Shauna paid $3,200 of property taxes on her personal residence. She also paid $500 to the developer of her subdivision, becuase he ahd to replace the sidewalk in certain areas of the subdivision.
F) Shauna paid a $200 property tax based on the state's estimate of the value of her car.
g) Shauna has a home mortgage loan in the amount of $220,000 that she secured when she purchased her home. The home is worth about $400,000. Shauna paid interest of $12,300 on the loan this year.
H) Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corp. to the red cross. On the date of contribution, the fair market value of the donated shares was $1,000 and her basis in the shares was $400. Shauna originall bought the ZYX Corp. stock in 2008. Shauna also contributed $300 cash to state university and religious artifacts she has held for several years to her church. The artifacts were valued at $500 and Shauna's basis in the items was $300. Shauna had every reason to believe the church would keep them on display indefinitely. Shauna also drove 200 miles doing church-related errands for her minister. Finally, Shauna contributed $1,200 of service to her church last year.
i) Shauna's car was totaled in a wrekc in January. The car was worth $14,000 and her cost basis in the car was $16,000. The car was a complete loss. Shauna recieved $2,000 in insurance reimbursement for the loss.
j)Shauna paid $300 for architectural design publications, $100 for continuing edu courses to keep her up to date on the latest design technology, and $200 for professional dues to maintain her staus in a professional designer's organization.
k)Shauna paid $250 in investments advisory fees, and another $150 to have her tax return prepared (that is, she paid $150 in 2015 to have her 2014 taxes return prepared).
L) Shauna is involved in horse racing as a hobby. During the year, she won $2,500 in prize money and incured $10,000 in expenses. She has never had a profitable year with her horse racing activities, so she acknowledges that this is a hobby for federal income tax purposes.
m) Shauna sustained $2,000 in gambling losses over the year (mostly horse racing bests) and only had $200 in winning.
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