Question

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.

Prepare Form 1040 Schedule A,B,D,E

Answer 1