Question

Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2018. 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 2019 for her job as a manager at a Florida shrimp-processing plant are:

Earnings from the Gulf Shrimp Co. $44,000 Federal income tax withheld 4,600 State income tax withheld 0

Bea's other income includes interest on a savings account at Beach National Bank of $1,200 and $600 per month alimony from her ex-husband in accordance with their August 2011 divorce decree.

Bea's employer operates a 401(k) plan, and although she is eligible, Bea does not participate.

During 2019, Bea paid the following amounts (all of which can be substantiated):

Home mortgage interest (1098 not shown) $8,800 Auto loan interest 2,300 State sales tax 820 Property taxes on personal residence 3,233 Unreimbursed hospital bills 3,275 Doctor bills 2,612 Other deductible medical expenses 720 Income tax preparation fee 600 Job-hunting expenses 925 Contribution to IRA 2,300

In September 2019, Tropical Storm Yuri struck Gulfport and a tree fell on Bea's home. Bea acquired the home in February 2012 for $110,000. The FMV of her home before the storm was $117,800. The estimated loss in market value from damage was equal to her repair charge of $7,800. The damage caused by TS Yuri was declared a federal disaster (code EM-1212). Bea's deductible was quite high and her insurance company only reimbursed her $1,200.

Required:
Complete Bea's Form 1040 and Schedules 1, A and Form 4684.

• Bea had health coverage for the entire year and does not want to make a contribution to the presidential election campaign.
• Make realistic assumptions about any missing data.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required round any dollar amount to the nearest dollar.

Answer 1

Bea Jones
Particulars	Amount($)
Wages , salary from Gulf shrimp co	44000
Taxable Interest	1200	add
Additional Income as per schedule 1	7200	600*12 = alimony #
Less contribution to IRA as per schedule 1	-2300	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	17192	## schedule A rounded off 17067.5
Taxable income	32908	(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%	2806	(32908-9525)*12%= 2805.96 rounded off
Tax on Taxable income	3759	(2806+953)
With holding tax	4600
Refund	841	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	3275
Doctor Bills	2612
other deductiable medical biils	720
Total Medical Expenses		6607
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	6607-3757.5	2849.5
Home mortgage Interest		8800
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		17192.5
### 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