Question

Martin S. Albert is 39 years old and is married to Michele R. Albert. The Alberts live at 512 Ferry Rd, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18.

Martin and Michele had the following transactions:

a. Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: $7,049 for Social Security and $1,740 for Medicare. Martin worked in Mexico from January 1, 2017, until February 15, 2018. His $120,000 salary for 2018 included $18,000 he earned for January and one-half of February while working in Mexico.

b. Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.

c. Martin received $2,500 interest from a Bahamian bank account.

d. Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them and she did not have the option of receiving cash.

e. Martin and Michele received a $1,200 refund on their 2017 Virginia income taxes. Their itemized deductions for 2017 totaled $14,000.

f. Martin paid $6,000 alimony to his former wife Rose T. Morgan. The divorce was finalized in 2015.

g. Martin and Michele kept the receipts for their sales tax paid of $1,100.

h. Martin and Michele’s itemized deductions were as follows: a. State income tax paid and withheld $5,100 b. Real estate taxes on their principal residence $3,700 c. Mortgage interest on their principal residence $2,500 d. Cash contributions to the church totaled $2,800

compute the albert's net tax payable or refund due

Answer 1

ANSWER:-

Martin & Michele form 1040.
	Salary Martin		102000
	Dividend qualified	400
	Interest on bonds		400
	Interest from banks		2,500
	Tax refund		1200
	Gross Income		1,06,100
	Less
	Alimony paid		6,000
	AGI		100,100
	Itimized deduction	23989
	Standard deduction	12600	23989
	Taxable income		75,311
	Tax liability		10370
	Fedral tax paid		10750
	Tax refund		380
	Form - A,	itimized deductions
	FICA tax		7049
	Social securty tax		1740
	Sales tax		1100
	Real estate tax		3700
	State income tax		5100	18689
	Mortgage interest			2500
	Cash contribution to church			2800
	Itimized deduction			23989