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Tax Return Problem 5.docx - Tax Return Problem 5...

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Tax Return Problem 5 -Individual Tax (after Chapter 12) Instructions: complete the 2015federal income tax return for Joseph and Diana Cohen. Ignore the requirement to attachthe form(s) W-2 to the front page of the Form 1040, sched A, sched B, C 2 forms, Sch D,form 8949, sched SE, Sched 6251, sched 8582 If required information is missing, usereasonable assumptions to fill in the gaps. Joseph and Diana Cohen live in Pleasantville,New Jersey. Joseph is the Vice-President of Sales at a small start-up company. Diana is aformer advertising executive who currently consults with former clients. She also serveson the board of directors of an advertising company. The Cohens have three childrenRebecca (age 18), Alan (age 15), and David (age 12). In January, Rebecca left home toattend a liberal arts college. All three children qualify as Joseph and Diana’s federalincome tax dependents. The Cohens plan to file a joint tax return. The Cohens providedthe following information: • Joseph’s social security number is 598-94-2583 • Diana’ssocial security number is 301-52-2942 • Rebecca’s social security number is 887-44-8710• Alan’s social security number is 810-42-9092 • David’s social security number is 855-11-3021 • The Cohen’s mailing address is 85 North Maple Drive, Pleasantville, New Jersey08233 Joseph Cohen reported the following the following information relating to hisemployment during the year: Employer Gross Wages Federal Income Tax WithholdingState Income Tax Withholding Alternative Energy $118,325 $29,230 $15,000 The aboveamounts do not reflect any income items described below. Joseph’s employer withheld allpayroll taxes it was required to withhold. The entire Cohen family was covered byminimum essential health insurance during each month in 2015. The insurance wasprovided by Joseph’s employer, Alternative Energy. Diana Cohen received the followingrevenue during the year (she uses the cash method of accounting). Consulting revenuereported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen’s HealthProducts $8,500 Strategic Solutions $3,750 Board of director compensation reported toher on a Form 1099-MISC, Box 7 Natural Sunshine, Inc. $6,500 During the year, Dianapaid the following business expenses: Consultant-related: Airfare $2,900 Hotel $1,450

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Term
Three
Professor
N/A
Tags
Taxation in the United States, Income tax in the United States

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