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Please solve completely and show work for a full rating. Thank you. Questions and Problems Group 4: Comprehensive Problems 1. John Williams (birthdate August 2,
Please solve completely and show work for a full rating. Thank you.
Questions and Problems Group 4: Comprehensive Problems 1. John Williams (birthdate August 2, 1975) is a single taxpayer. John's earnings and withholdings as the manager of a local casino for 2018 are reported on his Form W-2 555-04-0358 e-file MU 128 400 00 Lucky Ace Casino 700 N. Sierra Street Reno, NV 89503 195 800.00 John Williams 1324 Skywalker Drive Reno, NV 89501 NVI W-2 st 2018 John's other income includes interest on a savings account at Nevada National Bank of $13,700 John pays his ex-wife, Sarah McLoughlin, $3,900 per month in accordance with their 2012 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,725 per month. His ex-wife's Social Security number is 554-44-5555 In 2018, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,660, which exceeds the estimated amount per the IRS tables John participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $125 in 2018. During the year, John paid the following amounts (all of which can be substantiated): Credit card interest $1,760 Auto loan interest 4,300 Auto insurance 900 Contribution to IRA 5,500 Property taxes on personal residence 2,640 Contributions to HSA 2,800 Income tax preparation fee 900 Charitable contributions (all cash) Boy Scouts 1,350 St. Matthews Church 3,100 U of Nevada (Reno) Medical School 26,900 Nevada Democratic Party Fund-raising dinner for the Reno Auto Museum (value of dinner is $25) John also received the following Form 1098: CORRECTED checked NOTLINGERIE pore. Po w der Reno Bank & Trust 49 Commerce Street Reno, NV 89501 2018 Mortgage Interest Statement Copy For 16 056.78 POR 592 700 00 03/01/2002 Trento 33-1234569 555-94-9358 ta John Williams RO 1324 Skyewalker Drive * Reno, NV 89501 Required: Complete John's federal tax return for 2018. Use Form 1040, Schedule 1, Schedule A, Schedule B, and Form 8889 to complete this tax return. Make realistic assumptions about any missing data. Questions and Problems Group 4: Comprehensive Problems 1. John Williams (birthdate August 2, 1975) is a single taxpayer. John's earnings and withholdings as the manager of a local casino for 2018 are reported on his Form W-2 555-04-0358 e-file MU 128 400 00 Lucky Ace Casino 700 N. Sierra Street Reno, NV 89503 195 800.00 John Williams 1324 Skywalker Drive Reno, NV 89501 NVI W-2 st 2018 John's other income includes interest on a savings account at Nevada National Bank of $13,700 John pays his ex-wife, Sarah McLoughlin, $3,900 per month in accordance with their 2012 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,725 per month. His ex-wife's Social Security number is 554-44-5555 In 2018, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,660, which exceeds the estimated amount per the IRS tables John participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $125 in 2018. During the year, John paid the following amounts (all of which can be substantiated): Credit card interest $1,760 Auto loan interest 4,300 Auto insurance 900 Contribution to IRA 5,500 Property taxes on personal residence 2,640 Contributions to HSA 2,800 Income tax preparation fee 900 Charitable contributions (all cash) Boy Scouts 1,350 St. Matthews Church 3,100 U of Nevada (Reno) Medical School 26,900 Nevada Democratic Party Fund-raising dinner for the Reno Auto Museum (value of dinner is $25) John also received the following Form 1098: CORRECTED checked NOTLINGERIE pore. Po w der Reno Bank & Trust 49 Commerce Street Reno, NV 89501 2018 Mortgage Interest Statement Copy For 16 056.78 POR 592 700 00 03/01/2002 Trento 33-1234569 555-94-9358 ta John Williams RO 1324 Skyewalker Drive * Reno, NV 89501 Required: Complete John's federal tax return for 2018. Use Form 1040, Schedule 1, Schedule A, Schedule B, and Form 8889 to complete this tax return. Make realistic assumptions about any missing dataStep by Step Solution
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