Tax_return_2_revised_5-7-11 - TAX RETURN PROBLEM 2 40...

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40 POINTS Revised May 7, 2011 Stacey Harrison (453-44-5321) and Warren Harrison (444-32-5890) live at 5755 Warren Road, Santa Barbara, Ca. 90432. Stacey was born 7/1/1972. She is employed as a teacher at Milliken Secondary School. Her W-2 for 2009 shows wages of $34,982.15, federal income tax withheld of $2314.23, California State income taxes withheld of $982.53, FICA and Medicare tax were withheld at the appropriate rate. She is married to Warren Harrison, born 3/2/1960. He is employed as an accountant at Chlorox Corporation EIN 44-324351. His W-2 shows salary of $73,215.25, federal income tax withheld of $3832.74, California State income taxes withheld of $1992.35, social security and Medicare tax withheld based on the appropriate rate. They file a joint tax return. They contribute $3 to the presidential election return. On April 1, 2010 they file their 2009 tax return. On May 20, 2009 they received a $478 refund of their 2008 Federal taxes which they applied to their 2009 estimated tax. They also received a California tax refund of $964.53 on May 1, 2009 for the 2008 year which they applied to their 2009 California estimated tax. In 2008 itemized deductions totaled $24,353.53, AGI was $80,200, California tax was $5000, property tax 11,700. In 2009 they made estimated tax payments of $775 per quarter for federal taxes and $372 per quarter for state taxes. The payments were made on 4/21/09, 7/15/09, 9/01/09 and 1/10/10. On 1/24/09 they paid the fourth quarter 2008 estimated Federal tax of $700, no fourth quarter payment was made in 2009 for 2008 California taxes. The Harrisons have not received an Economic Recovery Payment. The sales tax rate they paid on purchases was 10 percent. They have three children that they support. Barry (583-22-5787) was born 4-12-2000. He still lives at home with his parents and attends school Wally (524-31-2784) was born 4-1- 2002 and Theodora (524-34-3591) was born 4/01/1989. Stacey paid job-related child care expenses of $7442 ($3000 on behalf of Wally and $4442 on behalf of Barry) to Phillip Williams (782-31-2739). He lived with the family full-time. The Harrisons did not withhold any taxes on behalf of Phillip Williams, but pay the “nanny tax” and file the appropriate forms with the 2009 tax return. No state unemployment taxes were due on behalf of Williams. Theodora was a junior who lived in the dormitories at UC Santa Barbara, 11300 Hillside Road, Santa Barbara, 92031, where she was receiving a degree in economics. She spent her vacations at home. In addition to the amount she earned from her mother’s travel agency, she earned $10,500 from a part-time job at Wonderworld, Inc (EIN 33-444444). Her parents provided over half her support. She received an ordinary dividend that was also qualified of $1742 from Heinz, Corp on 9/25/2009. If eligible, her parents elect to report the kiddie tax on their return. If the parents are not eligible, she files her own tax return. During the year she had
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This note was uploaded on 11/07/2011 for the course ACCT 508 taught by Professor Frankel during the Spring '10 term at S.F. State.

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Tax_return_2_revised_5-7-11 - TAX RETURN PROBLEM 2 40...

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