Unformatted text preview: Mary stayed at home during the year to care for her mother. Debra has no gross income for tax purposes for the year, but received $2,800 in social security benefits. The Stuarts provide the remaining $7,000 of Debra’s support. Bill and Mary’s income for the year is composed of: Bill’s salary of $44,000 and $380 of interest on a savings account at Pelham National Bank. During the year Bill made a $4,000 investment in his Traditional IRA. In addition, the Stuarts received $400 of interest on a state of Mississippi bond. Bill was unemployed for 2 months of the year during which time he received $1,000 in unemployment compensation. Bill had $5,200 of federal income taxes and $1,400 of state income tax withheld from his paycheck....
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- Spring '11
- Taxation in the United States, Income tax in the United States