Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Steve Jackson (age 51) is a single taxpayer living at 3215 Pacific Dr., Del Mar, CA 92014. His Social Security number is 465-88-9415. In 2015,

Steve Jackson (age 51) is a single taxpayer living at 3215 Pacific Dr., Del Mar, CA 92014. His Social Security number is 465-88-9415. In 2015, Steves earnings and income tax withholding as the manager of a local hotel are:

Earnings from the Ocean View Hotel

$121,000

Federal income tax withheld

18,500

State income tax withheld

9,300

Steves other income includes interest from General Electric bonds of $2,500 and interest on a savings account at Wells Fargo Bank of $3,210. Also, Steve received tax-exempt interest of $29,200 on private activity bonds that is subject to alternative minimum tax. Steve had full medical coverage for the entire tax year.

During the year, Steve paid the following amounts (all of which can be substantiated):

Home mortgage interest

$31,600

Credit card interest

1,760

Auto insurance

900

State income taxes paid in 2015 (for 2013 audit)

12,540

Property taxes on personal residence

6,200

Kaiser HMO premiums

4,800

Other medical expenses

790

CPA fees paid to handle 2013 state audit

7,000

Charitable contributions:

Girl Scouts

800

San Diego State University (contribution)

10,000

Italian Red Cross

250

Required: Complete Steves federal tax return for 2015. UseForm 1040,Schedule A, andSchedule BandForm 6251. Make realistic assumptions about any missing data.

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

Core Concepts Financial Analysis

Authors: Gary Giroux

1st Edition

047146712X, 9780471467120

More Books

Students also viewed these Accounting questions