Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to complete Rhonda Hill's 2015 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

Use the following information to complete Rhonda Hill's 2015 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms.

Facts:

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. Rhonda's 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 Mabel's 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.

Rhonda's birthday is 12/18/1950 and her Social Security number is 335-67-8910.

Mabel's birthday is 11/2/1942 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).

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

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.

Page C-5

Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2015. She purchased the stock on December 12, 2010, for $10 a share. She also sold 50 shares of RSA stock for $15 a share on October 2, 2015. She purchased the stock for $65 a share on February 2, 2015. Stock basis amounts have been reported to the IRS.

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 2015.

Insurance premiums

$3,700

Prescription medications

100

Over-the-counter medications

250

Doctor and dentist visits

1,450

Eyeglasses

300

Physical therapy

200

Rhonda paid $2,800 in mortgage interest during the year to UCU credit union (reported to her on Form 1098). She also paid $1,200 in real property taxes during the year.

Rhonda contributed $2,350 to Heavenly Church during the year. Heavenly Church's address is 1342 Religion Way, Tulsa, Oklahoma 74101.

image text in transcribed Use the following information to complete Rhonda Hill's 2015 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and instructions can be found at the IRS Web site (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. Rhonda's 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 Mabel's 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. Rhonda's birthday is 12/18/1950 and her Social Security number is 335678910. Mabel's birthday is 11/2/1942 and her Social Security number is 566778899. Rhonda does not have any foreign bank accounts or trusts. Rhonda has qualifying insurance for purposes of the Affordable Care Act (ACA). 1 Rhonda received a Form W2 from Carter and Associates (her employer) that contained the following information: Line 1 Wages, tips, other compensation Line 2 Federal income tax withheld $72,000 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 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. 1 Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2015. She purchased the stock on December 12, 2010, for $10 a share. She also sold 50 shares of RSA stock for $15 a share on October 2, 2015. She purchased the stock for $65 a share on February 2, 2015. Stock basis amounts have been reported to the IRS. Page C-5 1 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 2015. Insurance premiums Prescription medications 100 Over-the-counter medications 250 Doctor and dentist visits 1 1 $3,700 1,450 Eyeglasses 300 Physical therapy 200 Rhonda paid $2,800 in mortgage interest during the year to UCU credit union (reported to her on Form 1098). She also paid $1,200 in real property taxes during the year. Rhonda contributed $2,350 to Heavenly Church during the year. Heavenly Church's address is 1342 Religion Way, Tulsa, Oklahoma 74101

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_2

Step: 3

blur-text-image_3

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

Psychology Applied To Teaching

Authors: Jack Snowman, Rick McCown

14th Edition

1285734556, 9781285734552

More Books

Students also viewed these Accounting questions