Complete Schedule A for attached files
ACT405 – Portfolio Project Case 1 Comprehensive Tax Problem – Option 1 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. Form 1040 Form 1040 Department of the Treasury Internal Revenue Service2016 U.S. Individual Tax Form OMB No.1545-0074IRS 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,,20See Separate Instructions Your first name and initialLast nameSocial Security Number If a joint return, spouses first name and initialLast nameSpouse Social Security Number Home address( number and street). If you have a P.O. Box, see instructionsMake 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 nameForeign province/state/countryForeign postal codechecking this box below will not change your tax refund.youspouse Filing Status1. Single4.Head of Household (with qualifying person.) (See instructions.) If Check only one box2.. married filing jointlythe qualifying person is a child but not your dependent, enter this 3. Married filing separately. Enter spouse's SSN abovechild's name here and full name here.5. Qualifying Window(er) with dependent child Exemptions6a 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 fourc. Dependents dependents, see(1) First nameLast name(2) dependents(3) dependents (4) check if child under age 17No. of children instructions and social security numberrelationship to youqualifying for tax credit seeon 6c who: check hereinstructions.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 ClaimedAdd numbers on lines above Income7Wages, salaries, tips, etc. Attach Forms (W-2)7 8aTaxable interest. Attach Schedule B if required8a Attach Form(s)bTax-exempt interest. Do not include on line 8a8b W-2 here. Also9aOrdinary dividends. Attach Schedule B if required9a attach Forms(s) bQualified dividends9b W-2 and 1099-R10Taxable refunds, credits, or offsets state or local income taxes10 if tax was withheld.11Alimony received11 12Business income or (loss). Attach Schedule C or C-EZ12 If you did not 13Capital gain or (loss). Attach Schedule D if required. If not required, check here13 get a W-2,14other gains or (losses). Attach Form 479714 see instructions15aIRA distributions15ab Taxable amount15b 16aPensions and annuities16ab Taxable amount16b 17Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E17 18Farm income or (loss). Attach Schedule F18 19Unemployment compensation19 20aSocial security benefits20ab Taxable amount20b 21other income. List type and amount21 22combine the amounts in the far right column for lines 7 through 21. This is your total incomeThis is your total income.22 Adjusted 23Educator expenses23 Gross24Certain business expenses of reservists, performing artists, and fee-basis government. Attach Form 2106 or 2106-EZ24 Income 25Health-savings account deduction. Attach Form 888925 26Moving Expenses. Attach Form 390326 27Deductible part of self-employment tax. Attach Schedule SE27 28Self-employed SEP, SIMPLE, and qualified plans28 29Self-employed health insurance deduction29 30Penalty on early withdrawal of savings30 31aAlimony paid b. Recipient's SSN31a 32IRA deduction32 33Student loan interest deduction33 34Tuition and fees. Attach Form 891734 35Domestic production activities deduction. Attach Form 890335 36Add lines 23 through 3536 37Subtract line 36 from line 22. This is your adjusted gross income.37 Schedule A SCHEDULE AOMB No. 1545-0074 (Form 1040)Itemized Deductions2016 Department of the Treasury Internal Revenue Service (99)▶ Information about Schedule A and its separate instructions is at www.irs.gov/schedulea Attachment ▶ Attach to Form 1040. Sequence No. 07 Name(s) shown on Form1040 Your social security number Medical and Dental Expenses Caution. Do not include expenses reimbursed or paid by others. 1Medical and dental expenses (see instructions).....1 2Enter amount from Form 1040, line 382 3Multiply line 2 by 10% (.10). But if either you or your spouse was born before January 2, 1949, multiply line 2 by 7.5% (.075) instead3 4Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-. . . . . . . . 4 Taxes You Paid5State and local (check only one box): a □ Income tax or }. . . . . . . b □ General sales tax5 6Real estate taxes (see instructions) . . . . . . . . .6 7Personal Property taxes.. . . . . . . . . . .7 8Other taxes. List type and amount >. 8 9Add lines 5 through 89 Interest You Paid Note. Your mortgage interest deduction may be limited (see instructions).10Home mortgage interest and points reported to you on Form 109810 11Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person’s name, identifying no., and address ▶ 11 12Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . . . .12 13Mortgage insurance premiums (see instructions) . . . . .13 14Investment interest. Attach Form 4952 if required. (See instructions.)14 15Add lines 10 through 14. . . . . . . . . . . . . . . . . . . . . . . . . .15 Gifts to16Gifts by cash or check. If you made any gift of $250 or more, Charitysee instructions. . . . . . . . . . . .