Question

Comprehensive Problem 5-2A Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2017. She lives at 654 Ocean Way, Gulfport, FL 33707. Bea's Social Security number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2018 for her job as a manager at a Florida shrimp-processing plant are: Earnings from the Gulf Shrimp Co. $43,200 4,600 Federal income tax withheld State income tax withheld Bea's other income includes interest on a savings account at Beach National Bank of $2,200 and $600 per month alimony from her ex-husband in accordance with their 2010 divorce decree. Bea's employer operates a 401(k) plan, and although she is eligible, Bea does not participate. During 2018, Bea paid the following amounts all of which can be substantiated):

Answer 1

statement showing Computation of Bea jones Taxable income and federal tax liability as per year 2018

status of filling single

Bea Jones

Particulars	Amount($)
Wages , salary from Gulf shrimp co	43200
Taxable Interest	2200	add
Additional Income as per schedule 1	7200	600*12 = alimony #
Less contribution to IRA as per schedule 1	-2500	Traditional contibution to ira are deductable and money received after reteirment as pension is taxable
Adjustable Gross Income	50100	43200+2200+7200-2500
Less Standard deduction	0	standard dedution of 12000 is less than itemized deduction so its beeten to take itemized deduction
less itemized deduction as per schedule A	17068	## schedule A rounded off 17067.5
Taxable income	33032	(50100-17067.5)
Taxes on Taxable income
Tax liability on base bracket	953	10% of 9525 rounded off
Tax liability on excess over base@12%	2821	(33032-9525)*12%= 2820.84 rounded off
Tax on Taxable income	3774	(2821+953)
With holding tax	4600
Refund	826	full refund will be delivered as he has opted for health insuranse coverage , so deduction of presidential election campain will be done

# Alimony will be added in the income in the hand bea jones because as per federal tax laws alimony received after 2018 is not to be added as income , alimony receiver before 2018 will be added

## statement showing calculation of Itemized deduction as per schedule A

Unreimbursed Hospital Bill	3250
Doctor Bills	2612
other deductiable medical biils	720
Total Medical Expenses		6582
Adjustable gross income as per form 1040	50100
Multiply adjustable gross income with 7.5%		3757.5
ALLOWED MEDICAL EXPENSES over 7.5% OF ADJUSTABLE GROSS INCOME	6582-3757.5	2824.5
Home mortgage Interest		8700
state sales tax	820
property tax	3233
Total state sales tax and Property tax allowed upto $ 1000		4053
CAsuality and theft loss ###		1490
Total Itemized deduction		17067.5

### casulaity loss

loss in market value of house = 7800

less insurance claim received =-1200

Total loss = 6600

less deduction alllowed upto $ 100 as per federal tax rules  = $100

so total loss = 6600-100

= 6500

adjusted gross income= 50100*10% = 5010

allowed casuality loss above deduction =5010

Casuality loss allowed = 6500-5010

=1490

#### auto loan interest , income tax prepartion and job hunting expenses are disallowed expenses as per new 2018 federal tax rules