Question

John, age 53, (social security number 554-78-4556) is single and is supporting his 18 year old son, David (social security number 444-55-7777). David is a student at MirMonte High School. They live in a rented home at 1245 West 5Th Street, Coalinga, CA. John is employed as a engineer and received the following on his W-2, Wages, $124,566, Federal Income Tax withheld, $32400. John also received dividends from Pepsico, $1500 of which 1344 were qualified dividends. Be sure to calculate the tax using the Qualified Dividends and Capital Gains tax worksheet. He also received interest from Bank of America totaling $245. Other items of income were a gift from John's father of cash, $50,000, lottery winnings of $1500 on a Lottery Scratcher ticket.

Answer 1