Assignment
Complete the schedule A for the taxpayer. Explain you conclusions and show your computation for each entry. If an item is not deductible note that in your answer. You may lose points for omitting items, even if not deductible.
Rob and Sue, husband and wife are both in their 50s. In 2013 they gave their accountant a list of their expenses to prepare the tax return. Based on their list, prepare Schedule A. Their adjusted gross income was $85,000.
Prescription medication for Rob's high blood pressure 250
Non-prescription medication for Sue's allergies 85
Eye glasses for Sue, designer frame and special coating 775
Sun glasses for Rob, no prescription 185
Prescription medication for their daughter who is 29 and earned $45,000 in 2013 $185
In November 2013, they were both having major breathing problems and their doctor told them to go to a warm dry climate for 10 days. They went to Arizona and were able to relieve the problems. Cost of the trip $4,000 ($800 airfare. $2,500 hotel and 700 meals)
Sue paid for her mother's nursing home $36,000. Her mother is in the home because she is so senile she cannot bathe or feed herself. Mother earned $5,000 interest on her savings in 2012
Their payroll deductions were
Federal income tax 6,000
New York State tax 2,000
New York City tax 750
They got a refund of their 2012 Federal tax of 185 and paid $800 on April 15, 2013 when they filed their state tax
According to the tax tables their New York State sales tax deduction would be $2,600
They paid real estate tax on their properties
Home (Brooklyn) 3,600
Summer home (Upstate) 800
Ski home (Utah) 400
They paid the real estate tax on their daughter's home because she was late and threatened with foreclosure. $1,100 was paid on to New York City in 3013
They paid mortgage interest of
Home (Brooklyn) 1,800
Summer home (Upstate) 400
Ski home (Utah) 350
Their son attends school operated by their church. Cost of tuition 3,000
They paid membership dues to their church of $600 and have all the documentation needed.
They each took two days off from work to help prepare and serve Thanksgiving dinners for the poor at their church. Lost wages $600, cost of getting there and back $10.
They donated canned goods to the Church's food pantry, cost $65. It was food that they would not eat because of diet restrictions.
At work a client spilled coffee on Rob. The tie (cost $45) was ruined and the cost to clean his suit was $15.
They paid union dues of $200 and safe deposit box (to keep important documents) $35.
Complete the Schedule A.