In: Accounting
Tax Return Problem
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 |
Medicare W/H (box 6) | = | $ | 631.35 |
On the weekends, Jin worked at Parts-Galore, a local auto parts store. The Form W-2 from Parts-Galore contained information in the following boxes:
Wages (box 1) | = | $ | 9,167.02 |
Federal W/H (box 2) | = | $ | 348.39 |
Social security wages (box 3) | = | $ | 9,167.02 |
Social security W/H (box 4) | = | $ | 568.36 |
Medicare wages (box 5) | = | $ | 9,167.02 |
Medicare W/H (box 6) | = | $ | 132.92 |
Jin also received a Form 1099-INT from Minnesota Savings and Loan. The amount of interest income in box 1 of the Form 1099-INT was $51.92. Jin had qualifying health care coverage at all times during the tax year. Prepare a Form 1040 for Jin. (Input all the values as positive numbers. Round your final answers to the nearest whole dollar amount.)
Use the appropriate Tax Tables.
Form 1040 (2018) for a Single taxpayer with no dependents.
Total wages (42851.89+9167.02) |
52018.91 |
Interest income |
51.92 |
Gross income |
52070.83 |
Less: adjustments |
0 |
AGI |
52070.83 |
Less: standard deduction |
12000 |
Taxable income |
40070.83 |
Tax liability (4453.50+(22%*(40070.83-38700))) |
4755.08 |
Federal income tax withholding (4583.91+348.39) |
4932.90 |
Tax due (Refund) |
$(177.22) |