Question

Dave Stevens, age 34, is a self-employed physical therapist. His wife Sarah, age 31, teaches English...

Dave Stevens, age 34, is a self-employed physical therapist. His wife Sarah, age 31, teaches English as a Second Language at a local language school. Dave’s Social Security number is XXXXX Sarah’s Social Security number is XXXXX Sarah and Dave have three children—Andrew, age 8; Isaac, age 6; and Mira, age 3. The children’s Social Security numbers are, respectively, XXX-XX-XXXX, XXX-XX-XXXX, and XXX-XX-XXXX. They live at 12637 Pheasant Run, West Bend, Oregon 74658. They paid $8,900 in qualified residence interest and $2,400 in property taxes on their home. They had cash charitable contributions of $14,000. They also paid $180 to a CPA for preparing their federal and state income tax returns for the prior year, $100 of which was for the preparation of Dave’s Schedule C. Sarah and Dave earned interest on CDs of $3,200. Sarah’s salary for the year is $32,000, from which $9,600 in federal income tax and $1,400 in state income tax were withheld. Dave’s office is located at Suite 402,XXXXX Portland, Oregon 74624, and his employer ID number is XXXXX Dave has been practicing for four years, and he uses the cash method of accounting. During the current year, Dave recorded the following items of income:

Revenue from patient visits $300,000
Interest earned on the office checking balance 225

The following expenses were recorded on the office books:
Property taxes on the office $ 4,500
Mortgage interest on the office 12,000
Depreciation on the office 4,500
Malpractice insurance 37,500
Utilities 3,750
Office staff salaries 51,000
Rent payments on equipment 15,000
Office magazine subscriptions 150
Office supplies 24,000
Medical journals 330

Dave pays $50 annually for use of a safety deposit box to store certain confidential documents related to his business. In addition to his medical practice, Dave spends 15 hours every week managing his real estate investments. To make sure he is aware of all current investment strategies and best practices, he subscribes to the following journals:

Wall Street Journal $150
U.S. News & World Report 55
Money Magazine 45
Dave also paid $30,000 in estimated federal income taxes. Prepare Dave and Sarah’s tax return (Form 1040, Schedules A, B, C, and SE) for the current year. Disregard any tax credits for which they may be eligible.

The tax return uses the forms from 2018, ive been at it for 3 hours and I cannot figure out. Any help would be appreciated, thank you

Homework Answers

Answer #1

Hello, I presume this is for year 2011.

I can give you the line #s for the returns and the amounts.

Schedule B has $3200 on lines 1, 2, and 4, this will go on 8a of the 1040A.

Schedule C:

Check cash method on line F.

Line 1b = 300,000 (also 1d, 3 and 5)

Line 6 = 225

Line 7 = 300225

Line 13 = 4500

Line 15= 37500

Line 16a 12000

Line 17= 100 (tax prep fee for professional part)

Line 18 = 24150

Line 20a = 15000

Line 23= 4500

Line 25 = 3750

Line 26 = 51000

Line 27a = 380 (from medical pubs and safe deposit box entered on 2nd page part V line 48)

Line 28= 152880

Line 29 = 147345

Line 31 = 147345

Line 31 carries to line 12 on the 1040 and line 2 on Sched SE

Sched SE

Lines 2 and 3 = 147345

Line 4=136073

Line 5=15053

Line 6=8594

Schedule A=

Line 5=1400

Line 6=2400

Line 9=3800

Line 10 and 15 = 8900

Line 16 and 19 = 14000

Line 22=80

Line 23=250

Line 24=330

Line 26=3479

Line 27 = 0

Line 29= 26700

Form 1040--

Line 7 = 32000

Line 8a = 3200

Line 12 = 147345

Line 22 = 182545

Line 27 and 36=8594

Line 37 = 173951

Line 38 = 173951

Line 40=26700

Line 41= 147251

Line 42=18500

Line 43=128751

Line 44=24438 (from tax computation worksheet)

Line 46=24438

(Child tax credit not allowed (income too high)

Line 55=24438

Line 56=15053

Line 61=39491

Line 62=9600

Line 63=33000

Line 72=42600

Line 73= 3109

Client gets a nice refund!!!

Please let me know if you need clarification.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5. Dave, age 32, loses his job in a corporate downsizing. As a result of his...
5. Dave, age 32, loses his job in a corporate downsizing. As a result of his termination, he receives a distribution of the balance in his § 401(k) account of $20,000 ($25,000 − $5,000 Federal income tax withholding) on May 1, 2018. Dave’s marginal tax rate is 24%. a. What effect will the distribution have on Dave’s gross income and tax liability if he invests the $20,000 received in a mutual fund? b. Same as part (a) except that Dave...
Tim and Sarah Lawrence are married and file a joint return. Tim’s Social Security number is...
Tim and Sarah Lawrence are married and file a joint return. Tim’s Social Security number is 123-45-6789, and Sarah’s Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean’s Social Security number is 123-45-6788, and Debra’s Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive. Tim has the following...
It's been a year since Brian, a self-employed professional accountant, started his business on December 31,...
It's been a year since Brian, a self-employed professional accountant, started his business on December 31, 2019. During the year, he provided accounting services and earned # 120 million. He has an accountant and two clerks. He himself has a monthly salary of 81,500,000 and pays 712,600,000 and 110,800,000 a year, respectively, to the accountant and clerk. The total PIT and social security costs for Bat and his staff for the year are 89936000. The cost of office supplies, including...
David Miller (age 34) and his wife, Emily Miller (age 33), reside at 293 E. Main...
David Miller (age 34) and his wife, Emily Miller (age 33), reside at 293 E. Main Street in Sterling, MA, 01564 with their two children whom they fully support: Catherine (age 13) and Michael (age 11). During the year, Emily worked full-time as a customer service representative at a local bank and earned $37,600. Her employer withheld the following from her wages: Federal income tax $2,250.00 State income tax 1,124.60 Social security tax 2,331.20 Medicare tax 545.20 ROTH IRA contribution...
Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives...
Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2019, he had the following receipts: Salary $ 80,000 Interest income—    Money market account at Omni Bank $300    Savings account at Boone State Bank 1,100    City of Springfield general purpose bonds 3,000 4,400 Inheritance from Daniel 60,000 Life insurance proceeds 200,000 Amount from sale of...
For a single self-employed individual who runs a retail coffee shop is age 35 and has...
For a single self-employed individual who runs a retail coffee shop is age 35 and has no dependents. He opened his business in January 2018. He is a cash basis taxpayer. He reported following income and expense items connected with business: Income from sale:89000, Rent:17000, Utilities:6800, Supplies:2000, Insurance:5500. He purchased and placed in service some fixed assets for business. He wants to elect immediate expensing under  § 179:1.Machinery and Equip(new) costing 22000 on Jan 9, 2. Computer Equip(new) costing 13000 on...
John, age 53, (social security number 554-78-4556) is single and is supporting his 18 year old...
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...
1. Peter, age 17 and employed by his family-owned corporation, is covered under FICA. True or...
1. Peter, age 17 and employed by his family-owned corporation, is covered under FICA. True or False 2. FICA does not consider the first six months of sick pay as taxable wages. True or False 3. Payments made to a worker's spouse for hospital expenses in connection with an accident disability are not considered wages under FICA. True or False 4. Employer payments made directly to employees in lieu of health insurance coverage are taxable wages. True or False 5....
All answers must follow New York State tax laws. David Miller (age 34, SSN 846-66-7922) and...
All answers must follow New York State tax laws. David Miller (age 34, SSN 846-66-7922) and his wife, Emily Miller (age 33, SSN 234- 56-7891), reside at 293 E. Main Street in Sterling, MA, 01564 with their two children whom they fully support: Catherine (age 13, SSN 397-73-8399) and Michael (age 11, SSN 397-73-8566). During the year, Emily worked full-time as a customer service representative at a local bank and earned $37,600. Her employer withheld the following from her wages:...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age 55, is the designated beneficiary on his Roth IRA. Ray's Roth IRA was established 3 years ago. Which of the following statements is(are) CORRECT? I Ray was not subject to required minimum distributions from his Roth IRA during his lifetime. II If Mary chooses to distribute the entire balance of the Roth IRA this year, the distribution may be subject to both regular income...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT