Question
Required Use the following information to complete Rhonda Hills 2018 federal income tax return. If any information is missing, use reasonable assumptions to fill in
Required Use the following information to complete Rhonda Hills 2018 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms.
Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhondas older cousin Mabel Wright lives with Rhonda in the home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabels support. Rhonda also provided the following information: Rhonda does not want to contribute to the presidential election campaign. Rhonda lives at 1234 Blue Ridge Way, Tulsa, Oklahoma 74101. Rhondas birthday is 12/18/1953 and her Social Security number is 335-67-8910. Mabels birthday is 11/2/1945 and her Social Security number is 566-77-8899. Rhonda does not have any foreign bank accounts or trusts. Rhonda has qualifying insurance for purposes of the Affordable Care Act (ACA). 2. Rhonda received a Form W-2 from Carter and Associates (her employer) that contained the following information: Line 1 Wages, tips, other compensation $72,000 Line 2 Federal income tax withheld 9,300 Line 3 Social Security wages 72,000 Line 4 Social Security tax withheld 4,464 Line 5 Medicare wages and tips 72,000 Line 6 Medicare tax withheld 1,044 Line 16 State wages, tips, etc. 72,000 Line 17 State income tax 2,700 Carter and Associates address is 1234 CPA Way Tulsa, Oklahoma 74101; its FEIN is 91:0001002; and its State ID number is 123456678 3. Rhonda received $250 in interest from Tulsa City bonds, $1200 interest from IBM bonds, and $150 from her savings account at UCU Credit Union. She also received a $460 dividend from Huggies Company and $500 from Bicker Corporation. Both dividends are qualified dividends. 4. The following is a record of the medical expenses that Rhonda paid for herself during the year. The amounts reported are amounts she paid in excess of insurance reimbursements. Rhonda drove 210 miles for medical purposes in 2018. Insurance premiums $3,700 Prescription medications 1,000 Over-the-counter medications 250 Doctor and dentist visits 1,450 Eyeglasses 300 Physical therapy 200 5. Rhonda paid $3,800 in mortgage interest during the year to UCU credit union (reported to her on Form 1098). She also paid $2,200 in real property taxes during the year. 7. Rhonda contributed $2,350 to Heavenly Church during the year. Heavenly Churchs address is 1342 Religion Way, Tulsa, Oklahoma 74101.
Line 5 from IT-1040 is $191,285
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