Question
Tax return problem

Tax Return Problem 3 Kathy and Rob Wright obtained a divorce effective May 1, 2017. In accordance with the divorce decree, Rob was required to pay $2,250 per month until their only child turns 18; then the payments would be reduced to $1,500 per month. Kathy has full custody of the child and appropriately takes the dependent deduction and child credit. Furthermore, Rob was to transfer title of their house, which had a cost of $150,000 and a fair value of $200,000 on the date of transfer, to Kathy and was to continue making the monthly mortgage payments of $1,235 on behalf of Kathy. Rob works for a large oil distributor in Santa Fe, NM, and after the divorce lives at 1132 Northgate Avenue, Santa Fe, NM 87501. Robs social security number is 412-34-5671 (date of birth 11/4/1983), and Robs social security number is 412-34-5670 (date of birth 8/14/1980). Rob had qualifying health care coverage at all times during the tax year. His W-2 contained the following information: Wages (box 1)- $85,100.25 Federal W/H (box 2)- S 7,325.24 Social security wages (box 3) $85,100.25 Social security W/H (box 4)S 5,276.22 Medicare wages (box 5)$85,100.25 Medicare W/H (box 6) 1,233.95 He also received a Form 1099-INT from First New Mexico Bank with $336 of interest income in box 1. In addition, Rob made a timely $2,500 contribution to his new HSA account. Prepare a Form 1040 and a Form 8889 for Rob. We have provided selected filled-in source documents that are available in the Connect Library. We do not discuss all for AGI deductions in this chapter. Taxpayers may also take for AGI deductions for 205
0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

Answer:-

Line 31a
Add up to divorce settlement paid = $12,000 + $9,880 = $21,880

Alimony sum does exclude kid bolster. For this situation, when the tyke turns 18 provision sum is decreased to $1,500 every month, which implies $750 ($2,250 - $1,500) is paid for youngster bolster. Thus the equivalent has been avoided from support permitted as finding. In this manner, provision paid is $12,000 [$1,500 8]

Alimony sum will likewise incorporate the measure of home loan intrigue paid by Rob for the benefit of Kathy for 8 months which is $1,235 • 8 =$9,880


Line 40

Standard deduction - $6,350 Itemized deduction = $4,940 [51,235 " 4][mortgage interest paid when Rob was owner of the house] Hence higher of the above is $6,350

line 42

Exclusion = $4,050 As Rob is recording the arrival as single without any wards, individual exception for just 1 individual will be accessible which is 54,050 (1'$4,050)


Line 44

Estimation of tax1 : Adjusted gross income (Line 38)[before alimony paid deduction] = S 82,936 Less : alimony paid (line 31a) = S 21,880

Adjusted gross income (Line 38)[after alimony paid deduction] = 61,056

Less :Higher of ordered conclusion or standard finding (line 40) = $ 6,350

Less :Exemptions (line 42) = 4,050

Taxable pay = $ 50,656

Tax = $ 8,403 ( $5,226.25 + (($50.656-$37,950)'25%)}


Line 64 T

he government pay assess retained = $ 7325.24 (according to Form W-2)

   please do rate my answer......

Add a comment
Know the answer?
Add Answer to:
Tax return problem Tax Return Problem 3 Kathy and Rob Wright obtained a divorce effective May...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Tax return problem Tax Return Problem2 In June 2017 Phillip and Barbara Jones and their two...

    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...

  • Tax return problem Tax Return Problem 2 In 2017, John and Shannon O'Banion, who live at...

    Tax return problem Tax Return Problem 2 In 2017, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1979), and Shannon's is 412- 34-5671 (date of birth 11/3/1981). John and Shannon had qualifying health care coverage at all times during the tax year John's W-2 contained the following information: Wages (box 1)$66,346.74 Federal W/H (box 2) S 6,583.85 Social security wages (box...

  • In June 2019 Phillip and Barbara Jones are married, filing a joint return, and their two...

    In June 2019 Phillip and Barbara Jones are married, filing a joint return, 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 civilian job...

  • Tax return problem Tax Return Problem 1 Elise Dubois is single, has no dependents, and lives...

    Tax return problem Tax Return Problem 1 Elise Dubois is single, has no dependents, and lives at 55855 Ridge Drive in Lafayette, LA 70593. His social security number is 412-34-5670 (date of birth 3/15/1976). Elise had qualifying health care coverage at all times during the tax year. Her W-2 contained the following information: Wages (box 1)$48,965.25 Federal W/H (box 2) $ 5,043.40 Social security wages (box 3) $48,965.25 Social security W/H (box 4)$ 3,035.85 Medicare wages (box 5)$48,965.25 Medicare W/H...

  • What amount goes on line 20 and 21a from 2019 1040 tax return? What line should...

    What amount goes on line 20 and 21a from 2019 1040 tax return? What line should I put the $35? What amount goes on line 12a? I got some answers wrong but I am not sure which ones John and Martha Holloway are married filing jointly. They are 35 and 31 years old, respectively. Their address is 10010 Dove Street Atlanta, GA 30294. Additional information about Mr. and Mrs. Holloway is as folows: Social security numbers John 412-34-5670 Date of...

  • Tax return problem Tax Return Problem 3 Keisha Sanders, a divorced single taxpayer and practicing attorney,...

    Tax return problem Tax Return Problem 3 Keisha Sanders, a divorced single taxpayer and practicing attorney, lives at 9551 Oak Lane in Menifee, CA 92584. Her social security number is 412- 34-5670 (date of birth 2/27/1973). Keisha had qualifying health care coverage at all times during the tax year. Her W-2 contained the following information: 390 Wages (box 1)$84,601.55 Federal W/H (box 2) $9,898.38 Social security wages (box 3) $84,601.55 Social security W/H (box 4)S 5,245.30 Medicare wages (box 5)$84,601.55...

  • Tax Return Problem (please write steps) Jin Xiang is single and lives at 2468 North Lake...

    Tax Return Problem (please write steps) Jin Xiang is single and lives at 2468 North Lake Road in Lakeland, MN 56444. Her SSN is 412-34-5670. She worked the entire year for Lakeland Automotive. The Form W-2 from Lakeland contained information in the following boxes: Wages (box 1) = $ 42,851.89 Federal W/H (box 2) = $ 4,583.91 Social security wages (box 3) = $ 42,851.89 Social security W/H (box 4) = $ 2,656.82 Medicare wages (box 5) = $ 42,851.89...

  • what amount goes on 12a Tax? 1040 of 2019 1040 for a couple Married Filing Jointly...

    what amount goes on 12a Tax? 1040 of 2019 1040 for a couple Married Filing Jointly with no dependents. 1040 PG 1 1040 PG 2 Page 2 of Form 1040. Some information does not carry over from Page 1 Form 1040 (2019) Holloway Holloway 412-34-5670 Page 2 John 12a Tax (see inst. Check it any from Form(s) (1) 8814 Martha 12) 4972 (3) 3,677 ® b Add Schedule 2. line 3, and line 12 and enter the total 3,677 13a...

  • Prepare a Form 1040 with a Schedule 1 and Schedule A

    John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1982), and Shannon’s is 412-34-5671 (date of birth 11/3/1984).John’s W-2 contained the following information: Wages (box 1) =$ 66,346.74Federal W/H (box 2) =$ 5,224.75Social security wages (box 3) =$ 66,346.74Social security W/H (box 4) =$ 4,113.50Medicare wages (box 5) =$ 66,346.74Medicare W/H (box 6) =$ 962.03 Shannon did not work for the year due to a...

  • In 2016, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file...

    In 2016, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1978), and Shannon’s is 412-34-5671 (date of birth 11/3/1980). John and Shannon had qualifying health care coverage at all times during the tax year. John’s W-2 contained the following information: Wages (box 1) = $ 66,346.74 Federal W/H (box 2) = $ 6,583.85 Social security wages (box 3) = $ 66,346.74...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT