Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [The following information applies to the questions displayed below.] Shauna Coleman is single. She is employed as an architectural designer

Required information

Skip to question

[The following information applies to the questions displayed below.]

Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year. She correctly calculated her AGI. However, 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 for 2023.

  1. Shauna paid $4,680 for medical expenses for care from a broken ankle in October. 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.
  2. Shauna paid a total of $3,400 in health insurance premiums during the year (not through an exchange). 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 paid $3,000 for the surgery (she received no insurance reimbursement). She also incurred $450 of other medical expenses for the year.
  3. 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.
  4. In 2023, Shauna was due a refund of $250 for overpaying her 2022 state taxes. On her 2022 state tax return that she filed in April 2023, she applied the overpayment toward her 2023 state tax liability. She estimated that her state tax liability for 2023 will be $2,300.
  5. Shauna paid $3,200 of property taxes on her personal residence. She also paid $500 to the developer of her subdivision because he had to replace the sidewalk in certain areas of the subdivision.
  6. Shauna paid a $200 property tax based on the state's estimate of the value of her car.
  7. 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.
  8. Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corporation to the Red Cross. On the date of the contribution, the fair market value of the donated shares was $1,000 and her basis in the shares was $400. Shauna originally bought the ZYX Corporation stock in 2009. 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 services to her church last year.
  9. Shauna paid $250 in investment advisory fees and another $150 to have her tax return prepared (that is, she paid $150 in 2023 to have her 2022 tax return prepared).
  10. Shauna is involved in horse racing as a hobby. During the year, she won $2,500 in prize money and incurred $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.
  11. Shauna sustained $2,000 in gambling losses over the year (mostly horse-racing bets) and had only $200 in winnings.

a-2. Complete page 1 of Form 1040 (through taxable income, line 15) and Schedule A assuming her AGI is $107,000.

(Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2023 tax rules regardless of year on form.) Shauna does not wish to contribute to the Presidential Election Campaign fund or did not have any virtual currency transactions or interests.

Shauna's address is 19010 N.W. 135th Street, Miami, FL 33054.

Social security numbers:

Shauna Coleman: 111-11-1111

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory And Analysis Text And Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

14th Edition

1119881226, 978-1119881223

More Books

Students also viewed these Accounting questions