INDIVIDUAL TAX RETURN PROBLEM- Paige Turners 2012 federal income tax return
INDIVIDUAL TAX RETURN PROBLEMUse the next info to finish Paige Turners 2012 federal revenue tax return. If info is lacking, use cheap assumptions to fill within the gaps.Any required kinds, schedules, and directions might be discovered on the IRS Website online ( directions might be useful in finishing the kinds.Info:1. Paige Turner is single and has two kids from her earlier marriage. Ali lives with Paige,and Paige offers greater than half of her assist. Leif lives together with his father; Will (Lief lived withWill for all of 2012). Will offers greater than half of Leifs assist. Paige pays alimony of$400 monthly to Will. The funds are to proceed till Leif reaches age 18, once they willbe decreased to $150. Paige offers you with the next further info:She makes use of the money technique of accounting and a calendar 12 months for reporting.She needs to contribute to the presidential election marketing campaign.Paige lives at 523 Essex Avenue, Bangor, ME 04401.Paiges birthday is Could 31, 1974.Alis birthday is October 5, 2003.Leifs birthday is December 1, 2001.Paiges Social Safety quantity is 007-16-4727.Alis Social Safety quantity is 005-61-7232.Leifs Social Safety quantity is 004-23-3419.Wills Social Safety quantity is 006-45-6333.She doesn't have any overseas financial institution accounts or trusts.2. Paige is employed as a nuclear engineer with Atom Programs Consultants, Inc.(ASCI). ASCIs federal employer identification quantity is 79-1234466. Paigespay stubs point out that she had $7,230 withheld in federal taxes, $four,987 in statetaxes, $four,495 in Social Safety taxes, and $1,051 in Medicare taxes. ASCI hasan intensive fringe advantages program for its staff.three. Paige earned wage of $70,000 (earlier than subtracting her 401(ok) and flexiblespending plan contributions). She contributed $7,000 to her 401(ok) account, and shecontributed $three,600 to her versatile spending account.four. Benefiting from ASCIs instructional help program, throughout the fallPaige enrolled in two graduate engineering courses at an area school. ASCI paidher tuition, charges, and different course-related prices of $2,300.5. Paige acquired free parking within the companys safety storage that may normallycost $200 monthly.6. On January 15, 2012, Paiges father died. From her fathers property, she receivedstock valued at $30,000 (his foundation was $12,000) and her fathers home valued at$90,000 (his foundation in the home was $55,000).7. Paige owns a number of different investments and in February 2013 acquired an announcement from herbrokerage agency reporting the curiosity and dividends earned on the investments for 2012. (Seepage three.)eight. Along with the investments mentioned above, Paige owns 1,000 shares of Grubstake Mining& Improvement widespread inventory. Grubstake is organized as an S company and has 100,000shares excellent (S corp. ID quantity 45-4567890). Grubstake reported taxable revenue of$200,000 and paid a distribution of $1.00 per share throughout the present 12 months. Paige tells you thatGrubstake usually doesn't ship out its Ok-1 studies till late April. Nonetheless, its preliminaryreport has been according to the Ok- 1 for a few years. (See web page three.) Paige doesn't materiallyparticipate in Grubstakes actions.9. Paige slipped on a moist spot in entrance of a pc retailer final July. She broke her ankle and wasunable to work for 2 weeks. She incurred $1,300 in medical prices, all of which have been paid bythe proprietor of the shop. The shop additionally gave her $1,000 for ache and struggling ensuing from theinjury. ASCI continued to pay her wage throughout the two weeks she missed due to theaccident. ASCIs plan additionally paid her $1,200 in incapacity pay for the time she was unable to work.Underneath this plan ASCI pays the premiums for the incapacity insurance coverage as a taxable fringe profit.Varieties 1099 and 1098That is vital tax info and is being furnished to the Inner Income Service.1099-Div Dividends & DistributionsEntityDescriptionAmountGeneral DynamicsGross peculiar & certified dividends$3001099-Int InterestEntityDescriptionAmountNew Jersey Financial Improvement bonds Gross curiosity$300IBM bondsGross curiosity700State of Nebraska bondsGross curiosity2001098-Mortgage Curiosity StatementEntityDescriptionAmountSunbelt Credit score UnionMortgage curiosity$7,100Northeast BankHome-equity mortgage curiosity435Grubstake Mining & Improvement: preliminary report (preliminary Ok-1) to Paige for the 2012tax yearDistribution to shareholder$1,000Atypical revenue (1% of $200,000)$2,00010. Paige acquired a Kind 1099-B from her dealer for the sale of the next securities throughout2012. The adjusted foundation quantities have been reported to the IRS.Sale DatePurchase DateSales PriceHerBasisNebraska state bonds03/14/1210/22/06$2,300$1,890$eight,500$9,760Cassill Corp (500 shares)10/20/1202/19/1111. Along with the taxes withheld from her wage, she additionally made well timed estimated federal taxpayments of $175 per quarter. Paige want to obtain a refund for any overpayment.12. Paige discovered a renter for her fathers home on February 1, 2012. The month-to-month lease is $400,and the lease settlement is for one 12 months. The lease requires the tenant to pay the primary and lastmonths lease and a $400 safety deposit. The safety deposit is to be returned on the finish of thelease if the property is in good situation. On February 1 2012, Paige acquired $1,200 from thetenant per the phrases of the lease settlement. In November, the plumbing froze and a number of other pipesburst. The tenant had the repairs made and paid the $300 invoice. In December, he decreased his rentalpayment to $100 to compensate for the plumbing repairs. Paige offers you with the followingadditional info for the rental in 2012.Property taxes$770Different upkeep bills285Insurance coverage expense495Administration charge350Depreciation2,760The rental property is situated at 35 Harvest Avenue, Orono, ME 04473. Native apply is toallocate 12 p.c of the honest market worth of the property to the land. (See #6.) Paige makes alldecisions with respect to the property.13. Paige paid $2,zero50 in actual property taxes on her principal residence. The actual property tax is used topay for city colleges and different municipal providers.14. Paige drives a 2011 Acura TL. Her automotive registration charge (based mostly on the automotive 12 months) is $50 andcovers the interval 1/1/12 by 12/31/12. As well as, she paid $280 in property tax to the statebased on the ebook worth of the automotive.15. Along with the medical prices introduced in #9, Paige incurred the next unreimbursedmedical prices:Dentist$ 310Physician390Pharmaceuticals215Over-the-counter medicine140Optometrist125Emergency room fees440LASIK eye surgeryChiropractor2,00026516. On March 1, Paige took benefit of low rates of interest and refinanced her $75,000 homemortgage together with her unique lender. The brand new dwelling mortgage is for 15 years. She paid $215 in closingcosts and $1,500 in low cost factors (pay as you go curiosity) to acquire the mortgage. The home is value$155,000, and Paiges foundation in the home is $90,000. As a part of the refinancing association, shealso obtained a $10,000 home-equity mortgage. She used the proceeds from the home-equity mortgage toreduce the stability due on her bank cards. Paige acquired a number of Kind 1098 statements fromher financial institution for curiosity paid by her in 2012. Particulars seem under. (See additionally on web page three.)Major dwelling mortgage$7,100Dwelling-equity mortgage435Bank cards498Automobile mortgage39017. On Could 14, 2012, Paige contributed clothes to the Salvation Military. The unique price of theclothing was $740. She has substantiation valuing the donation at $360. The Salvation Military islocated at 350 Stone Ridge Highway, Bangor, ME 04401. As well as, she made the next cashcontributions and acquired an announcement from every of the next organizations acknowledgingher contribution:Larkin School$850United Approach125First Methodist Church790Amos Home (homeless shelter)200Native Chamber of Commerce10018. On April 1, 2012, Paiges home was robbed. She apparently interrupted the burglar becauseall thats lacking is an vintage brooch she inherited from her grandmother (June 12, 2004) and$300 in money. Sadly, she didnt have a separate rider on her insurance coverage coverage protecting thejewelry. Due to this fact, the insurance coverage firm reimbursed her solely $500 for the brooch. Her foundation inthe brooch was $6,000, and its honest market worth was $7,500. Her insurance coverage coverage additionally limits to$100 the amount of money that may be claimed in a theft.19. Throughout 2012, Paige paid an area CPA $350 to organize her 2011 tax return.