Question

Complete Form 1040-Schedule A for the following:

Taxpayer Information

            Name:   John Washington

            Address:   3450 Green St.

                            Miami, FL 54321

            DOB:   5/5/1960

            Filing Status:  Married

            SSN:  434-20-2020

            Occupation:  Engineer

            Name:  Debra Washington

            Address:  3450 Green St.

                           Miami, FL 54321

            DOB:  7/7/1962

            Filing Status:  Married

            SSN:  411-21-4568

            Occupation:  Teacher

INCOME INFORMATION:

            Wages and Compensation

The following information is taken from John Washington’s 2017 Form W-2 Wage and Tax Statement:

                                    

Box 1 – Wages, tips, and other compensation

80,000

Box 2 – Federal Withholding

12,500

Box 17 – State Income Tax Withholding

2,000

                        

The following information is taken from Debra Washington’s 2017 Form W-2 Wage and Tax Statement:

                                    

Box 1 – Wages, tips, and other compensation

42,000

Box 2 – Federal Withholding

3,500

Box 17 – State Income Tax Withholding

750

            Interest and Dividends

            John had interest income from a savings account from Everest Bank of $500.00

            Debra had dividend income of $550 from Blue Co. stock.

            Capital Gains

            John had the following stock transactions in 2017:

He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000

            Rental Real Estate

The couple owns a rent house which he purchased on July 1, 2014.  The income and expenses of the rental real estate unit are as follows:

                        Rental income                          $12,000

                        Property taxes                          $1,500

                        Depreciation                            $1,000

                        Repairs and Maintenance             $750

                        Insurance                                 $2,000

Other Transactions in 2017

1. Debra had educator expenses in 2017 of $450.00

2. John had gambling winnings of $1,000.

3.  John was the beneficiary of his mother’s life insurance policy.  

His mother died in 2017 and he received $50,000 under this policy.

            4.  Debra paid $700 in student loan interest.

            

Answer 1

Form 1040 Department of the Treasury

Internal Revenue Service

2016

U.S. Individual Tax Form

OMB No.1545-0074

IRS Use Only–Do not write or staple in this space

For the year Jan.1–Dec. 31,2016, or any other tax year beginning

,2016,

,20

See Separate Instructions

Your first name and initial

Last name

Social Security Number

If a joint return, spouses first name and initial

Last name

Spouse Social Security Number

Home address( number and street). If you have a P.O. Box, see instructions

Make Sure that the SSN(s) above

and on line 6c are correct

.

City, town, or post office, state, and zip code. If you have a foreign address, also complete spaces below (see instructions).

Presidential Election Campaign

Check here if you, or your spouse if filing jointly,

Foreign country name

Foreign province/state/country

Foreign postal code

checking this box below will not change your tax

refund.

you

spouse

Filing Status

1. Single

4.Head of Household (with qualifying person.) (See instructions.) If

Check only one box

2.. married filing jointly

the qualifying person is a child but not your dependent, enter this

3. Married filing separately. Enter spouse’s SSN above

child’s name here

and full name here.

5. Qualifying Window(er) with dependent child

Exemptions

6a Yourself. If someone can claim you as a dependent, do not check box 6a

]

Boxes checked

b spouse

]

on 6a and 6b

If more than four

c. Dependents

dependents, see

(1) First name

Last name

(2) dependents

(3) dependents

(4) check if child under age 17

No. of children

instructions and

social security number

relationship to you

qualifying for tax credit see

on 6c who:

check here

instructions.

lived with you

did not live with you

due to divorce or

separation

(see instructions)

Dependents on

6c not entered

above

d. Total number of Exemptions Claimed

Add numbers on lines above

Income

7

Wages, salaries, tips, etc. Attach Forms (W-2)

7

8a

Taxable interest. Attach Schedule B if required

8a

Attach Form(s)

b

Tax-exempt interest. Do not include on line 8a

8b

W-2 here. Also

9a

Ordinary dividends. Attach Schedule B if required

9a

attach Forms(s)

b

Qualified dividends

9b

W-2 and 1099-R

10

Taxable refunds, credits, or offsets state or local income taxes

10

if tax was withheld.

11

Alimony received

11

12

Business income or (loss). Attach Schedule C or C-EZ

12

If you did not

13

Capital gain or (loss). Attach Schedule D if required. If not required, check here

13

get a W-2,

14

other gains or (losses). Attach Form 4797

14

see instructions

15a

IRA distributions

15a

b Taxable amount

15b

16a

Pensions and annuities

16a

b Taxable amount

16b

17

Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E

17

18

Farm income or (loss). Attach Schedule F

18

19

Unemployment compensation

19

20a

Social security benefits

20a

b Taxable amount

20b

21

other income. List type and amount

21

22

combine the amounts in the far right column for lines 7 through 21. This is your total income

This is your total income.

22

Adjusted

23

Educator expenses

23

Gross

24

Certain business expenses of reservists, performing artists, and fee-basis government. Attach Form 2106 or 2106-EZ

24

Income

25

Health-savings account deduction. Attach Form 8889

25

26

Moving Expenses. Attach Form 3903

26

27

Deductible part of self-employment tax. Attach Schedule SE

27

28

Self-employed SEP, SIMPLE, and qualified plans

28

29

Self-employed health insurance deduction

29

30

Penalty on early withdrawal of savings

30

31a

Alimony paid b. Recipient’s SSN

31a

32

IRA deduction

32

33

Student loan interest deduction

33

34

Tuition and fees. Attach Form 8917

34

35

Domestic production activities deduction. Attach Form 8903

35

36

Add lines 23 through 35

36

37

Subtract line 36 from line 22. This is your adjusted gross income.

37