Question - Harold J. Milton (SSN 000-22-1111) is unmarried filing single with no dependents. He had the following income and deductions for 2011:
Salary $177,000
State income taxes 18,000
Interest income from bank 12,000
Mortgage interest expense on residence 19,000
Dividend income (qualified) 18,000
Deductible IRA contribution 5,000
Interest expense on car loan 3,000
Tax-exempt interest from municipal bonds 24,000
Real estate taxes on residence 2,000
Charitable contributions 27,000
Miscellaneous deductions-other (before the 2% AGI floor) 7,000
Income taxes withheld 20,000
Estimated tax payments ($2,500 per quarter) 10,000
Complete Milton's 2011 Form 1040, Schedule A, B, D, Form 6251, and Form 2210.
Milton had AGI in 2010 of $200,000 and his 2010 income tax liability was $46,000. (Note: Milton is eligible to use the Short Method on Form 2210.)