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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

  1. 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

7,800

  • 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
  1. Rhonda received $250 in interest from Tulsa City bonds, $120 interest from IBM bonds, and $15 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.
  2. Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2019. She purchased the stock on December 12, 2013, for $10 a share. She also sold 50 shares of RSA stock for $15 a share on October 2, 2019. She purchased the stock for $65 a share on February 2, 2019. Stock basis amounts have been reported to the IRS.
  3. 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 2019.

Insurance premiums

Prescription medications

Over-the-counter medications

Doctor and dentist visits

Eyeglasses

Physical therapy

$3,700

100

250

1,450

300

200

  1. Rhonda paid $6,800 in mortgage interest during the year to UCU credit union (reported to her on Form 1098). She also paid $1,240 in real property taxes during the year.
  2. Rhonda contributed $5,400 to Heavenly Church during the year. Heavenly Church's address is 1342 Religion Way, Tulsa, Oklahoma 74101.

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