Question - John Williams (birthdate August 2, 1974) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is 555-94-9358. John's earnings and withholdings as the manager of a local casino for 2016 are reported on his Form W-2:
John's other income includes interest on a savings account at Nevada National Bank of $13,575.
John pays his ex-wife, Sarah McLoughlin, $4,000 per month. When their 12-yearold child (in the wife's custody) reaches 18, the payments are reduced to $2,750 per month. His ex-wife's Social Security number is 554-44-5555.
In 2016, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,560, which exceeds the estimated amount per the IRS tables.
During the year, John paid the following amounts (all of which can be substantiated):
|
Credit card interest
|
$1,760
|
|
Auto loan interest
|
4,300
|
|
Auto insurance
|
900
|
|
Property taxes on personal residence
|
2,640
|
|
Blue Cross health insurance premiums
|
2,800
|
|
Other medical expenses
|
790
|
|
Income tax preparation fee
|
900
|
|
Charitable contributions:
|
|
Boy Scouts
|
1,350
|
|
St. Matthews Church |
3,100
|
|
U. of Nevada (Reno) Medical School |
26,900
|
|
Nevada Democratic Party |
250
|
|
Fund-raising dinner for the Reno Auto Museum (value of dinner is $25) |
100
|
John also received the following Form 1098:
Required: Complete John's federal tax return for 2016. Use Form 1040, Schedule A, and Schedule B, to complete this tax return. Make realistic assumptions about any missing data.