Tax 1

Questions: 1. What is the net Form W-2 wages? 2. What is miscellaneous income? 3. What is Schedule B income (Interest and dividends)? 4 What is Schedule C net income (Business income)? 5. What is Schedule D net income (Capital gains and losses)? Whetic Schodule C danramintiin. 11. Paul slipped on a wet spot in front of a computer store last July. He broke his ankle and was unable to work for two weeks. He incurred $1,300 in medical costs, all of which were paid by the owner of the store. The store also gave him $1,000 for pain and suffering resulting from the injury. ASCI did not pay his salary during the two weeks he missed because of the accident. However, ASCI's disability insurance plan paid him $1,500 in disability pay for the time he was unable to work. Under this plan, ASCI pays the premium of $500 for the disability insurance as a taxable fringe benefit. The disability plan premiums and the disability benefit payments were not included in Paul's W-2 wages reported in paragraph 3. 12. Paul received a Form 1099-B from his broker for the sale of the following securities during the current year. The adjusted basis amounts were reported to the IRS. Security Sale Date Purchase Date Nebraska bonds03/14/1910/22/10 Sassill Corp 10/20/19 (500 shares) 02/19/15 Sales Price Commission Paid SaleHis Basis $2,300 $280 $1,890 $8,500 $425 59.760 13. In addition to the taxes withheld from his salary, he also made timely estimated federal tax payments of $175 per quarter and timely estimated state income tax payments of $150 for the first three quarters. The $150 fourth quarter state payment was made on December 28 of the current year. Paul would like to receive a refund for any overpayment. 14. In August of the current year, he received a federal refund of $60 and a state tax refund of S240 related to the tax returns he filed for the prior year. His itemized deductions for the prior year were $18.430 15. Paul found a renter for his father's house on August 1. The monthly rent is $600, and the lease agreement is for one year. The lease requires the tenant to pay the first and last months' rent and a $600 security deposit The security deposit is to be returned at the end of the lease if the property is in good condition on August 1. Paul received $1,800 from the tenant per the terms of the lease agreement. In November, the plumbing froze and several pipes burst. The tenant had the repairs made and paid the $300 bill. In December, he reduced his rental payment to $300 to compensate for the plumbing repairs. Paul provides you with the following additional information for the rental in the current year. 4 A 62 119 63 19 64 119 65 119 Interest Expenses Primary home mortgage Home-equity loan Credit cards Car loan 69 120 70 120 71 20 72 120 73 120 74 120 Charitable Contributiuons Clothing to the Salvation Army Larkin College United Way First Methodist Church Amos House (homeless shelter) Local Chamber of Commerce OOOOOOO 77 78 121 79 121 80 121 81 121 Casualty Loss Theft of jewelry Theft of cash Less: Insurance recovery - jewelry Less: Insurance recovery - cash Subtotal Sheet1 Sheet2 Sheet36 ooooo Enter as a positive Enter as a positive F G 78 121 79 121 80 421 81 121 Casualty Loss Theft of jewelry Theft of cash Less: Insurance recovery - jewelry Less: Insurance recovery - cash Subtotal Less: Per incident floor Less: AGI floor Deductible casualty loss OOOOOOO Enter as a positive Enter as a positive Enter as a positive Enter as a positive 88 123 89 124 90 124 Miscellanous itemized deductions Accountable expense reimbursement plan expenses Business publications expenses Tax return preparation fees Total miscellaneous expenses Less: AGI floor Deductible miscellaneous itemized deductions ooooooo Enter as a positive TOTAL ITEMIZED DEDUCTIONS STANDARD DEDUCTION Sheet1 Sheet2 Sheet3 0 Less: Per incident floor Less: AGI floor Deductible casualty loss Enter as a positive Enter as a positive o 88 123 89 124 90 24 Miscellanous itemized deductions Accountable expense reimbursement plan expenses Business publications expenses Tax return preparation fees Total miscellaneous expenses Less: AGI floor Deductible miscellaneous itemized deductions Enter as a positive TOTAL ITEMIZED DEDUCTIONS STANDARD DEDUCTION Oo oo GREATER OF ITEMIZED OR STANDARD Qualified Business Income Deduction 14 015 TAXABLE INCOME: Questions: 11. What is the Schedule A deduction for interest expense? 12. What is the Schedule A deduction for charitable contributions? 13. What is the Schedule A total itemized deductions? 14. What is the qualified business income deduction? 15. What is taxable income