Question

Obtain the supporting information from your Portfolio Project option. You will also use the Schedule A template included under that same option.

Show all calculations within the cells of the template. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well; no hard coding of solutions. Submit a single MS Excel file for grading.

The deliverable is as follows:

The completed Form 1040-Schedule A template.

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.

Answer 1

Name: John Washington

Occupation: Engineer

Statement showing total income of John Washington

Wages,tips& other compensation. =80000

Less:- federal withholding. =12500

Less:- state income tax withholding = 2000

Income from occupation = 65500 Add:- interest income = 500

Add:- gambling winnings = 1000

Add:- amount received from LIC = 50000

Less:- loss on sale of shares = 13000

Total income =104000

Name :-. Debra washiWashi

Occupation:- teacher

Statement showing total income of Debra Washington

wages, tips and other compensation = 42000

Less:- fedral withholding = 3500

Less:- state income tax withholding = 750

Income from occupation = 37750

Add:- Divided income = 550

Less:- educator expenses. = 450

Less:- education loan = 700

Total income = 37150

Statement showing total income

total income of john wasWashing = 104000

Total income of Debra Washington= 37150

Gross total income = 141150

Add:- rental income = 12000

Less:- Depreciation. = 1000

Less:- property tax = 1500

Less:- repairs and maintenance = 750

Less:- insurance = 2000

Net total income = 147900