Using 2016 Tax Laws:

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for three years. They have a son, Jason, who is 15, and daughter, June, who is 19. Jasons social security is 111-11-1111, and Junes is 123-45-6788.

Roberta, an advertising executive, earned a salary (Form W-2) of $80,000 in 2015. Her employer withheld $8,500 in federal income tax, $3,100 in state income tax, and the appropriate amount of FICA tax: $3,960 for Social Security and $1,160 for Medicare tax.

Roberta has legal custody of Jason and June. The divorce degree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during the summer vacation. Wayne indicates that his expenses for Jason are $10,500. Roberta can document that she spent $6,500 for Jasons support in 2015. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2015, she has decided not to do so. Roberta provides all of Junes support except for tuition. June is a full time student (fall and spring) at Northern Illinois University and Wayne paid $5,000 in tuition for his daughter June.

Robertas mother died on January 7, 2015. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mothers life insurance policy, Roberta received insurance proceeds of $300,000. Her mothers cost basis for the life insurance policy was $120,000. Robertas favorite aunt gave her $13,000 for her birthday in October.

On November 8, 2015, Roberta sold for $20,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2009, Walts cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2009. On December 1, 2015, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2012, for $7,000.

An examination of Robertas records reveals that she received the following:

Form 1099-INT for interest income of $2,000 from First Savings Bank

Groceries valued at $750 from a local grocery store for being the 100,000^th customer.

Form 1099-DIV, qualified dividend income, from Amber for $1,800

Interest income of $3,750 on City of Springfield school bonds.

Alimony of $12,000 from Wayne.

Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300 (ordinary income, box 1). Also, she had distributive share of a Section 1031 gain of $2,000 and interest income of $500. (See ST Partnership K-1 included in the handouts.)

From her checkbook records, she determined that she made the following payments during 2015:

Charitable contributions of $3,350 to First Presbyterian Church and $1,500 to the American Red Cross (proper documentation was obtained).

Qualified mortgage interest on her residence of $7,800.

Property taxes of $3,100 on her residence and $1,100 on her car.

Estimated Federal income tax payments of $3,800 and estimated state income taxes of $1,000.

Medical expenses of $5,000 for her and $800 for Jason. In December her medical insurance policy reimbursed $1,500 of her medical expenses.

She paid a $1,000 ticket for parking in a handicap space.

Attorneys fees of $500 associated with unsuccessfully contesting the parking ticket.

Contribution of $250 to the campaign of a candidate for governor.

She had $950 of sales taxes paid.

Calculate Robertas net tax payable or refund due for 2015. Use 2014 forms, but use 2015 exemption amounts, standard deduction and tax rates. You will need Form 1040 and Schedules A, B, D, and E. There are additional form(s) required. You will be graded on the accuracy and completeness of the tax forms. The return should be prepared in your own writing. Make sure to include names and social security numbers where required. Lastly, the return should appear as if you were going to file it with the IRS on behalf of your client Roberta Santos. Good luck!

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for three years. They have a son, Jason, who is 15, and daughter, June, who is 19. Jasons social security is 111-11-1111, and Junes is 123-45-6788.

Roberta, an advertising executive, earned a salary (Form W-2) of $80,000 in 2015. Her employer withheld $8,500 in federal income tax, $3,100 in state income tax, and the appropriate amount of FICA tax: $3,960 for Social Security and $1,160 for Medicare tax.

Roberta has legal custody of Jason and June. The divorce degree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during the summer vacation. Wayne indicates that his expenses for Jason are $10,500. Roberta can document that she spent $6,500 for Jasons support in 2015. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2015, she has decided not to do so. Roberta provides all of Junes support except for tuition. June is a full time student (fall and spring) at Northern Illinois University and Wayne paid $5,000 in tuition for his daughter June.

Robertas mother died on January 7, 2015. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mothers life insurance policy, Roberta received insurance proceeds of $300,000. Her mothers cost basis for the life insurance policy was $120,000. Robertas favorite aunt gave her $13,000 for her birthday in October.

On November 8, 2015, Roberta sold for $20,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2009, Walts cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2009. On December 1, 2015, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2012, for $7,000.

An examination of Robertas records reveals that she received the following:

Form 1099-INT for interest income of $2,000 from First Savings Bank

Groceries valued at $750 from a local grocery store for being the 100,000^th customer.

Form 1099-DIV, qualified dividend income, from Amber for $1,800

Interest income of $3,750 on City of Springfield school bonds.

Alimony of $12,000 from Wayne.

Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300 (ordinary income, box 1). Also, she had distributive share of a Section 1031 gain of $2,000 and interest income of $500. (See ST Partnership K-1 included in the handouts.)

From her checkbook records, she determined that she made the following payments during 2015:

Charitable contributions of $3,350 to First Presbyterian Church and $1,500 to the American Red Cross (proper documentation was obtained).

Qualified mortgage interest on her residence of $7,800.

Property taxes of $3,100 on her residence and $1,100 on her car.

Estimated Federal income tax payments of $3,800 and estimated state income taxes of $1,000.

Medical expenses of $5,000 for her and $800 for Jason. In December her medical insurance policy reimbursed $1,500 of her medical expenses.

She paid a $1,000 ticket for parking in a handicap space.

Attorneys fees of $500 associated with unsuccessfully contesting the parking ticket.

Contribution of $250 to the campaign of a candidate for governor.

She had $950 of sales taxes paid.

Calculate Robertas net tax payable or refund due for 2015. Use 2014 forms, but use 2015 exemption amounts, standard deduction and tax rates. You will need Form 1040 and Schedules A, B, D, and E. There are additional form(s) required.

Please help!

I need help with the whole project!

Please specify what the the additional forms needed are as well as how to calculate the gains on the stock sold.