Prepare a tax return for Bart & Belinda Hilton. Make all other assumptions necessary to fill out the particular form. If there is a refund on the tax return, apply it to next year, if not, are there any penalties due

Bart (650-30-1222) & Belinda (306-30-0202) Hilton are married taxpayers.

They live at 301 HWY Dr. in Newton, Il 24075.

They have 2 children Mia age 16 (301-01-0123) and Molly age 14 (311-30-1511).

Belinda is a nurse, her W-2 has gross income of $63,000, $6,300 federal taxes and $5,000 in state taxes withheld.

Belinda contributed $3,000 to a TRADITIONAL IRA for the year.

Belinda received:

Dividends from FNB Bank of $625

Interest on a savings account at Bank of America of $150

US Savings Bond interest of $125

She also received 100 shares of Peach stock from her parents as a wedding gift a few years ago and she sold the stock December 1 for $2500, she needed money for Christmas presents for the kids.

Received $2,000 in alimony from her ex-husband.

The Molly stayed at Sweet Kids Daycare last summer (37-2345600) in Newton. The total bill was $2,000.

Barny received $6,000 from farm rental income and had the following expenses:

fertilizer bill for $2,850

real estate tax bill of $2,220

insurance of $500.

They also received $16,000 from the rent of a cabin in the country. The cabin had the following expenses:

Real estate agent $2,500 to manage the property

Real estate taxes of $2,400

For depreciation purposes, the cabin was purchased January 16 this year for $95,000. The cabin is not used more than 14 days for personal use.

On the personal side they had the following expenses:

medical bills of $6,500

real estate taxes on their home of $5,800

mortgage interest of $15,000

church contributions of $5,300

an old junk car that they gave the Salvation Army valued at $2,750

received $55,000 from Lora's s grandmother s estate on June 5 to this year after she passed away.

Made federal estimated tax payments of $3,000 in June, September, and December for this tax year.

Made state estimates of $1,250 in June, September, and December for this tax year.

Bart is a self-employed mechanic who grossed $125,000. He had the following expenses:

Purchased $52,000 in parts.

Business insurance was $2,200

Self-employed health insurance was $9,000

Professional fees of $3,000

Office supplies of $2,300

Food while working on the road $830

Credit card fees of $2,975

Utilities on business $12,440

Vehicle license $114

Interest for a Line of Credit $12,100

He also purchased depreciable equipment on 4/1 of this year for $8,000 that he decided to write off this year (Sec 179 expense).