Compute Kevin and Jim’s 2015 federal income tax return using Form 1040, Schedules A and B and Form 8283, if necessary. Last year they filed as married filing jointly
2- Write a formal memo to the taxpayers in which you explain very generally how you computed their tax, any assumptions you made or questions you would have liked to know the answers to, and any planning advice you would recommend going forward. The memo can be in any format and should be less than a page long, but more than a few sentences
This is information relating to Kevin and Jim Jones for 2015. Kevin and Jim are married and have 2 adopted children, Aubrynne (a girl) and Bryson (a boy). They live at 236 9th Ave., New York, NY 10011
Kevin is a lawyer who works for a law firm. Jim works part time in a genetic research lab.
The Jones’ Social Security numbers and ages are as follows:
Kevin’s salary $94,000
Jim’s salary 32,000
Municipal bond interest 2,400
Interest on C.D.s at Universal Savings 3,100
*Qualified dividend on GM stock 1,600
*Qualified dividends should be reported as both qualified and ordinary on the tax forms.
Eye exam and eyeglasses for Aubrynne 600
Orthodontic work to correct Bryson’s congenital defect 2,500
Medical insurance premiums (paid on an after tax basis) 1,800
State withholding for income tax 7,200
Federal withholding for income tax 16,000
State income taxes paid with last year’s return 500
Property tax on condo 1,100
Ad valorem Property tax on automobile 300
Home mortgage interest 9,700
Interest on credit cards 200
Cash contribution to Oregon Meditation center 3,900
Cash contribution to a senator’s campaign 1,500
Charitable donation of stock
On September 17, Kevin and Jim donated Beta Trade Inc. stock to Portland State University Accounting Scholarship Fund. Beta Trader, Inc. is publicly traded. Kevin and Jim had purchased the sock on November 7, 2003 for $300. On the date of donation, the fair market value of the contribution is $700.
The taxpayers did not have signature authority over a foreign bank account.
The taxpayers did not receive a distribution from a foreign trust.
You do not need to complete any state tax returns.
Do not worry about Alternative Minimum Tax (AMT)