Tax Return Problems
Tax Return Problem 2.1
Leslie Adams is a single taxpayer living at 456 Sherman Road, Denver, Colorado 80209. Her Social Security number is 646-33-1234. For 2008, Leslie has no dependents, and her W-2 from her job at a local restaurant where she is a sous chef contains the following information:
Wages $24,260
Withholding (federal income tax) $3,300
These wages are Leslie’s only income for 2008, and she wishes to donate to the Presidential Election Campaign Fund.
Required: Complete Leslie’s Form 1040EZ.
Tax Return Problem 2.2
Bea and Carl Arthur are married and file a joint return. Bea’s Social Security number is 774-12-3711 and Carl’s is 645-74-4351. They live at 143 Snapdragon Drive, Reno, Nevada 82102. Carl did not work this year, and Bea’s W-2 from her casino dealer’s job showed the following:
Wages $43,500
Withholding (federal income tax) $4,900
Bea and Carl have an 18-year-old son named Bert (Social Security number 152-32-6552), who is a dependent, a full-time student, and does not qualify for the child tax credit due to his age.
Required: Complete Bea and Carl’s Form 1040A.
Tax Return Problem 2.3
Eric (Social Security number 342-13-4989) and Tracey Steadman (Social Security number 487-65-1111) reside at 27415 King Street, Overland Park, Kansas 66213. They have one dependent child, Frank, age 5 (Social Security number 222-33-4444), and they are both under 65 years old. They do not wish to take advantage of the Presidential Election Campaign checkoff. Other relevant information includes:
Eric’s salary as a marketing manager $56,000.
Tracey’s salary as a teacher $28,000.
Interest from Johnson County Savings Bank $1,800.
Withholding for both (federal income tax) $8,551.
Required: Complete Eric and Tracey’s Form 1040A.
Tax Return Problem 2.4
Jeff Franklin (Social Security number 333-44-5555) lives at 1010 Grandview Road, Blue Springs, Missouri 61243. Jeff, a single taxpayer, age 60, provided 100% of his cousin’s support. The cousin lives in Texas. He wants to take advantage of the Presidential Election Campaign checkoff. Jeff is a cook. Other relevant information includes:
Salary $18,500
Taxable pension $32,000
IRA deduction $5,000
Federal withholding $6,445
Required: Complete Jeff’s Form 1040A.
