Accounting- Income Tax Return Help Reliable Assignment Help

  

Question Description

Daniel B. Butler and Freida C. Butler, husband and wife,
file a joint return. The Butlers live at 625 Oak Street Corbin, KY 40701. Dan’s
social security number is 111-11-1111, and Freida’s is 123-45-6789. Dan was
born on 1/15/63 and Freida was born on 8/20/1964.

  During
2014, Dan and Freida furnished over half of the total support of each of the
following individuals, all of whom still live at home:

  a. Gina,
their daughter, age 22, a full-time student, who married on December 21, 2014,
has no income of her own and for 2014 did not file a joint return with her
husband, Casey, who earned $10,600 during 2014. Gina’s social security number
is 123-45-6788.

  b. Sam,
their son, age 20, who had gross income of $6,300 in 2014, dropped out of
college in October 2014. He had graduated from high school in May 2014. Sam’s
social security number is 123-45-6787.

  c. Ben,
their oldest son, age 26, is a full-time graduate student with gross income of
$5,200. Ben’s social security number is 12304506786.

Dan was employed as a manager at WJJJ, Inc. (employer ID
number is 11-111), 604 Franklin Street, Corbin KY 40702), and Freida was employed
as a sales-person for Corbin Realty, Inc. (employer ID number is 98-7654321,
899 Central Street, Corbin, KY 40701). Selected Information from the W-2 forms
provided by the employers is presented below. Dan and Freida use the cash
method.

Line  Description  Dan  Freida

1  Wages,
tips, other compensation  $74,000  $86,000

2  Federal
Income tax withheld  $11,000  $12,400

17  State
income tax withheld  $2,960  $3,440

Freida sold a house on 12/30/2014 and will be paid a
commission of $3,100 (not included in the $86,000 reported on the W-2) on the
January 10, 2015 closing date.

 

Other income (as reported on 1099 Forms) for 2014 consisted
of the following:

Dividends on CSX stock (qualified)  $4,200

Interest on savings at Second Bank  1,600

Interest on City of Corbin bonds  900

Interest on First Bank CD  382

The $382 from First Bank was original issue discount. Dan
and Freida collected $16,000 on the First Bank CD that matured on September 30,
2014. The CD was purchased on October 1, 2012, for $14,995, and the yield to
maturity was 3.3%

Dan received a schedule K-1 from the Falcon partnership,
which showed his distributive share of income as $7,000. In addition to the
above, Dan and Freida’s itemized deductions included the following:

Paid on 2014 Kentucky income tax  $700

Personal property tax paid  600

Real estate taxes paid  1,800

Interest on home mortgage (Corbin S&L) 4,900

Cash contributions to the Boy Scouts  800

Sales tax from the sales tax table is $1,860. Dan and Freida
made Federal estimated tax payments of $8,000. The Kentucky income tax rate is
4%.

Tax Computation:

Compute Dan and Freida’s
2014 Federal income tax payable (or refund due).

Using tax forms for
your computations you will need 1040 and schedules A,B, and E.

Attach
separate document showing any work done in order to complete forms

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