Question

Ann Johnson is a single taxpayer and is employed as a secretary by State University of Texas. She has the following items pertaining to her income tax return for the current year:

• Received a $20,000 salary from her employer, who withheld $3,000 federal income tax

• Received a gift of 1,000 shares of Beta Corporation Stock with a $100,000 FMV from her mother. She also received $4,000 of cash dividends from the Beta Corporation. The dividends are qualified dividends.

• Received $1,000 of interest income on bonds issues by the City of Tyler Texas

• Received a regular stock dividend (nontaxable under Sec. 305) of 50 shares of Beta Corporation stock with a $5,000 FMV

• Ann’s employer paid $2,000 of medical and health insurance premiums on her behalf

• Received $12,000 alimony from her ex-husband

• State University provided $50,000 of group term life insurance. Ann is 42 years old and is not a key employee (consult insurance table to calculate tax liability)

• Received a $1,000 cash award from her employer for being designated Secretary of the Year

• Total itemized deductions are $8,000

Complete Form 1040 and accompanying schedules for Ann’s federal income tax return for the current year.

Answer 1

Answer:-

Coming up next are the responses to the inquiries:

(1) List the structures and timetables for A J: A J should record Form 1040 and its going with calendars (Refer Form 1040).

(2) Ordinary dividends as per Line 9a are $4,000.

(3) The total of amounts from Line 7 to Line 21 is $37,012.

(4) The assessable pay according to Line 43 is $25,712.

(5) The aggregate expense according to Line 60 is $3,481.