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Use your tax software to complete the following problems. If you are manually preparing the tax returns, you will need Form 1040, Schedule A,
Use your tax software to complete the following problems. If you are manually preparing the tax returns, you will need Form 1040, Schedule A, Schedule B, Schedule D, Schedule D worksheets, and Form 4797, Form 8949, or other forms, depending on the problems. Danae Coleman is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. Her SSN is 412-34-5670. Using the following information, complete her tax return for 2016: Kimber Company W-2: Gross $90,000 Social security tax 5.580 Medicare tax 1.305 Federal withholding tax 17,300 State withholding tax 2,700 Leo Company W-2: Gross $22,500 Social security tax 1,395 Medicare tax 326 Federal withholding tax 2,300 State withholding tax 600 Danae has the following itemized deductions: Real estate tax $7,633 Mortgage interest 8,445 Charitable contributions 3,000 Danae has the following investments: 1099-INT $2.510 1099-DN Ordinary dividends 2,389 Qualified dividends 1,963 Capital gain distribution 4,711 2015 shorttom loss canyover (1.000) Danae received a gift of 2,000 shares of FNP Inc. stock from her Aunt Jane on January 19, 2016. The basis of the shares to Aunt Jane was $4,300, and they had an FMV of $4,600 on the date of the gift. Aunt Jane purchased the stock on December 30, 2014. On June 30, 2016, Danae sold all the shares for $6,000. Danae is an avid stamp collector and purchased a rare stamp on March 20, 2007, for $4,000. She sold the stamp for $6,000 on April 8, 2016. Prepare Form 1040 and all related schedules, forms, and worksheets for 2016. Danae does not donate to the presidential election campaign. Danae had qualifying health care coverage at all times during the tax year.
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