c SD withheld 1800 of state income tax 7495 of Social Security tax and 14500 of

C sd withheld 1800 of state income tax 7495 of social

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c. SD withheld $1,800 of state income tax, $7,495 of Social Security tax, and $14,500 of federal income tax from Shauna’s paychecks throughout the year. d. In 2010, Shauna was due a refund of $250 for overpaying her 2009 state taxes. On her 2009 state tax return that she filed in April of 2010, she applied the overpayment towards her 2010 state tax liability. She estimated that her state tax liability for 2010 will be $2,300. e. Shauna paid $3,200 of property taxes on her personal residence. She also paid $500 to the developer of her subdivision, because he had to replace the sidewalk in certain areas of the subdivision. f. Shauna paid a $200 property tax based on the state’s estimate of the value of her car. g. Shauna has a home mortgage loan in the amount of $220,000. The home is worth about $400,000. Shauna paid interest of $12,300 in interest on the loan this year. h. Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corp. to the Red Cross. On the date of the contribution, the FMV of the donated shares was $1,000 and her basis in the shares was $400. Shauna also contributed $300 cash to State University and religious artifacts she has held for several years to her church. The artifacts were valued at $500 and Shauna’s basis in the items was $300. Shauna had every reason to believe the church would keep them on display indefinitely. Shauna also drove 200 miles doing church-related errands for her minister. Finally, Shauna contributed $1,200 of services to her church last year. i. Shauna’s car was totaled in a wreck in January. The car was worth $14,000 and her cost basis in the car was $16,000. The car was a complete loss. Shauna received $2,000 in insurance reimbursements for the loss. j. Shauna paid $300 for architectural design publications, $100 for continuing education courses to keep her up to date on the latest design technology, and $200 for professional dues to maintain her status in a professional designer’s organization. 6-12
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Topic 6 - Individual Deductions k. Shauna paid $250 in investment advisory fees and another $150 to have her tax return prepared (that is, she paid $150 in 2010 to have her 2009 tax return prepared). l. Shauna is involved in horse racing as a hobby. During the year, she won $2,500 in prize money and incurred $10,000 in expenses. She has never had a profitable year with her horse racing activities, so she acknowledges that this is a hobby for federal income tax purposes. m. Shauna sustained $2,000 in gambling losses over the year (mostly horse- racing bets) and only had $200 in winnings. Required: A. Determine Shauna’s taxable income assuming her AGI is $107,000. B. Determine Shauna’s taxable income assuming her AGI is $207,000 Part A : $80,168, computed as follows: Description Amount Explanation (1) AGI $107,00 0 From AGI deductions: a) and b) Medical expenses $ 844 Medical expenses in excess of 7.5 percent of AGI are deductible. See Note A below.
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  • Spring '12
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  • Taxation in the United States, Shauna Coleman

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