Question

Tax return problem

Tax Return Problem2 In June 2017 Phillip and Barbara Jones and their two dependent children, who are both over 17, moved from Chicago to Albuquerque, New Mexico a distance of 1,327 miles, which they drove in their own car. The children's names are Roger and Gwen and both will be attending the University of New Mexico in the fall, Roger as a freshman and Gwen as a junior. The move was a result of a job transfer for Phillip. The distance from their old home to Phillip's old office was 30 miles. Barbara quit her job in Chicago and decided to perform volunteer work for a year before seeking further employment. Phillip and Barbara incurred expenses of $4,550 to the moving company (which included $320 for temporary furniture storage), hotel charges of $550, and meals of $712 en route from Chicago to Albuquerque. Their new home is located at 7432 Desert Springs Way, Albuquerque, NM 87101. Phillip, but not Barbara, was employed in the new location throughout the year. Phillip's social security number is 412-34-5670 (date of birth 6/12/1975), Barbara's is 412-34- 5671 (date of birth 8/12/1977), Roger's is 412-34-5672 (date of birth 2/17/2000), and Gwen's is 412-34-5673 (date of birth 9/14/1998). The Joneses had qualifying health care coverage at al times during the tax year. page 4-33 Phillip is a civil engineer for a national firm; his W-2 contained the following information: Wages (box 1)$110,220.45 Federal W/H (box 2)11,015.42 Social security wages (box 3) $110,220.45 Social security W/H (box 4)S 6,833.67 Medicare wages (box 5) $110,220.45 Medicare W/H (box 6) 1,598.20 Employer moving expense reimbursement (box 12, Code P) $5,000.00 In addition, both he and Barbara received Forms 1098-E from the federal

Answer 1

Form 1040

Income

      wage                                   110220.45

      social security wage            110220.45

      medical care wages 110220.45

                                       330661.35

less:      Federal W/H                11015.42

         social security wage W/H    6388.33

         medical care wages W/H     1598.20

                                                   311659.40

medical expenses reimbursement    5000

                                                  306659.40

                                                   Fotm 3903

moving expenses is equal to

moving comapny         4550

hotel charges               550

meals                           750

                                   5850