1. Put together the 2013 Type 1040 and all different required Federal kinds and schedules for Brett Simons. The returns needs to be ready taking the utmost tax profit allowable into consideration. Spherical all quantities to entire dollars.2. Don’t put together tax returns for every other people talked about in the issue.three. The ages offered in the issue are decided as of 12/31/13.four. Put together return utilizing 2013 tax kinds offered or discovered at www.irs.gov.5. Vital Requirement! Any and all quantities excluded from earnings or deductions both restricted or not taken should be recognized.Info:Brett, age 45, is single and resides at 123 Major Road, West Haven, CT 06516. His social safety quantity is 123-45-6788. Brett has two youngsters, Kyle (age 17) and Grace (age 10), and their social safety #âs are 049-52-5472 and 045-23-5432 respectively. Brettâs mom, Donna Simons (age 70, social safety #048-68-5874) lives at 50 Benton Road, West Haven, CT. Donna receives Social Safety earnings of $15,000 per yr, $5,000 in part-time wages, and Brett pays his mom $75 per week to look at Grace after college (36 weeks). Brett doesn’t need to designate $three to the Presidential Election Marketing campaign fund.On New Yearâs Eve 2009, Brettâs spouse and Graceâs mom Susan, was tragically killed in an car accident attributable to a drunk driver. Brett survived the accident sustaining a damaged leg and arm. He filed a lawsuit with respect to his accidents which was settled in 2013 awarding compensatory damages of $15,000 and punitive damages of $25,000.Brett was the named beneficiary of Susanâs $150,000 life insurance coverage coverage. Brett was given the choice by Liberty Mutual to both obtain the whole proceeds as one fee in 2010 or to obtain $32,000 per yr for 5 years. Brett selected to obtain the proceeds in installments, the fourth of which was acquired in February, 2013.Because of the lack of his spouse, Brett determined that he ought to work at home. In December of 2012, he retired from his job as a Waterbury police officer and began his personal safety firm on January 1, 2013. He continued to work part-time for the Police Division in 2013. His W-2 from the Waterbury Police Division (EIN 06-1234567) reported the next: wages $10,000, federal earnings taxes withheld $1,500, and Connecticut earnings taxes withheld $500. WPD withheld the right quantities of social safety and medicare taxes from Brettâs pay throughout the yr. Brett was not a participant in WPDâs retirement plan.In 2013 Brett returned to highschool to pursue a masterâs diploma in Felony Justice. Throughout 2013, Brett paid $four,000 for certified tuition bills.Brettâs enterprise âSecure & Secureâ (taxpayer I.D. #06-7654321) opened for enterprise on January 1st. He makes use of the money technique of accounting and materially participates within the operation of this enterprise. Brett makes use of his completed basement as his workplace. It has a separate entrance for shoppers and occupies roughly 500 of the three,000 whole sq. footage of his residence. The house value $400,000 at acquisition (12/01/2000 and doesn’t embrace value of land). Brett rents all vital workplace furnishings and gear nonetheless repairs to the partitions and portray had been required to make it consumer prepared. The overall value for the wall repairs and portray was $three,000.Income and bills for Secure & Safe for the yr had been as follows:Safety providers Income $60,000Alarm monitoring providers Income $10,000Gear lease expense $6,000Enterprise insurance coverage expense $500Promoting expense $900Authorized bills $500Wages paid to his worker $9,000Payroll taxes paid on worker wages $800Workplace Provides Expense $1,100Legal responsibility Insurance coverage Expense $300Brett acquired the next curiosity and dividend earnings in 2013 (he didn’t have any curiosity in a overseas account or belief):Curiosity DividendsWebster Financial institution $600 UTC Company** $2,000Waterbury Credit score Union $300 Ace Company** $300Multistate Municipal Bonds $800 Walmart** $500**Non-Certified dividendsOn November 1, 2005, Brett and Susan invested in Ace Company by buying 100 shares at $80/share. Involved about the way forward for the corporate, he bought the shares at $40/share on February 1, 2013. Brett acquired a Type 1099-B from his funding firm that reported the sale and foundation of the inventory bought.Previous to assembly Susan, Brett was married to Elaine, Kyleâs mom (social safety #985-25-6975). Pursuant to their divorce settlement, Brett is required to make month-to-month alimony funds of $600 to Elaine. Brett faithfully makes every monthâs fee. As well as, Elaine is required to pay Brett $800 monthly for little one assist. Kyle resides along with his mom throughout the summer season and college holidays.Kyle graduated highschool in June and determined to review chemistry at a state college. He acquired a tutorial scholarship of $10,000 in direction of his first semester tuition bills of $18,000. As well as, he took a pupil mortgage for $6,000 to pay for room and board. Brett paid the steadiness of Kyleâs tuition prices from Brettâs financial savings account.Brett paid (and might substantiate) the next throughout the yr:Medical insurance premiums for Brett and youngsters (paid throughout 2013) $6,600Curiosity on Uncover bank card $300Dental bills (Graceâs braces) $6,000âLifestyleâ carry for Donna $6,500Mortgage curiosity (Major St) (Whole mortgage < 1,000,000) $7,800Actual property taxes (Major St) $2,000Mortgage curiosity (Donnaâs residence) $1,000Property taxes (assessed on carâs worth) $350Utilities for residence $5,500Homeownerâs insurance coverage $900Contributions to church $700Used furnishings donated to Goodwill (FMV) (Value = 1,000) $800Value of 1 dinner ticket to attend a fundraiser for the âRepublican Nationwide Committeeâ; worth of a comparable dinner = $50 $475Brett didn't preserve mileage information for medical or charitable contribution deduction functions.In 2013, Brett paid a steadiness of $900 along with his 2012 Connecticut earnings tax return. He additionally made state estimated tax funds totaling $1,000 ($250 on every of the next dates four/15/13, 06/15/13, 09/15/13 and 01/15/14).In 2013, Brett made federal estimated tax funds totaling $6,000 ($1,500 on every of the next dates four/15/13, 06/15/13, 09/15/13 and 01/15/14).Within the occasion he's due a refund of tax, Brett wish to apply all of his overpayment to his 2014 tax legal responsibility.
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