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Tax return project 1 Cindy Miller (SSN 000-22-1111), age 67, is a marketing manager at a local company. Cindy is single. Cindys elderly parents live

Tax return project 1

Cindy Miller (SSN 000-22-1111), age 67, is a marketing manager at a local company. Cindy is single. Cindys elderly parents live with her and Cindy provides them more than 50% of the support (both of her parents are qualified as Cindys dependents). Information about her 2017 income and expenses is as follows:

Income received

Salary

$132,000

Taxes withheld from salary:

Federal income tax $21,120

State income tax 5,940

Social Security tax 7,886

Medicare tax 1,914

Interest income ($3,000 from corporate bonds, and $1,000 from local school bonds).

4,000

Dividend income from U.S. stocks-qualified dividends

500

State income tax refund from 2016 return

300

Federal income tax refund from 2016 return

1,560

long term capital gain

4,500

short term capital gains

3,000

short term capital loss

(1,800)

Gambling wining

1,500

Annual gift from her great aunt

18,000

Expenses paid:

Unreimbursed qualified moving expenses

3,000

Unreimbursed dental and eye care costs

1,800

Medical insurance premium paid for herself

3,000

Unreimbursed medical expenses paid for her parents

3,500

Property taxes on her home

4,900

Contribution to traditional IRA

5,000

Fees paid to town for garbage pick-up

400

Gambling losses

3,200

Dues paid to American Marketing Association

1,100

Fee for preparation of 2016 tax return and IRS audit assistance

2,000

Home mortgage interest

10,000

Interest on credit card balances

2,410

Interest on car loan

1,100

Cash contribution to charity

1,000

Cindytook itemized deduction in 2016 (her total itemized deduction was $13,500). Please help Cindy to file her 2017 Federal Income Tax Return (Form 1040 and Schedule A).

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