Ken and Susan Jones, ages 47 and 45, are married and live at 584 Thoreau Drive, Boston, MA 59483. Ken Social Security number is 111-11-1111 and Susan is 222-22-2222. The Jones have two children: Emma, age 28, and Charlie, age 18. Their Social Security numbers are 333-33-3333 and 444-44-4444, respectively.
Ken is a commercial pilot for a small airline. His salary is $95,000, from which $19,000 of federal income tax and $8,000 of state income tax were withheld. Kelly also pays premiums for health, disability, and life insurance. $2,000 of the premium was for health insurance
Susan owns ABC Networks, a proprietorship that does network consulting. She works out of her home. During the year, Chanelle's gross revenues were $33,000. She incurred the following expenses in her business:
Liability insurance $ 700
Software rental 5,400
Journals and magazines 150
Training seminars 1,200
Supplies 1,300
Depreciation on assets acquired prior to 2013 2000
Susan purchased a laptop computer for $5000 on March 1, 2013. She chooses to elect the maximum Sec 179 expense on this computer.
Ken father passed away during the year. Ken and Susan received $100,000 from the life insurance policy. Neither Ken nor Susan paid any of the premiums.
Susan purchased 1000 shares of GE stock at $30 per share on May 1, 2003. She sold 500 shares at $45 per share on June 1 2013
Ken had to see a physical therapist for an injury this year. The $7,000 in charges was not covered by his insurance and he paid these billed this year.
Ken and Susan gave $900 to their church and, during the year, they had the following other income and expenses:
Real estate taxes $1,400
Home Mortgage interest 9,000
Credit card finance charges 2,600
Tax return preparation fees ($600 is allocable to Susan business) 1,000
Sales tax on purchases during the year 6,200
Interest from a savings account 1600
Interest from City of Boston Bonds 700
Dividend from P$G stock(Qualified) 2000
Prepare Ken and Susan tax return Form 1040 and Schedules A, B, C, D, Foem 8949, Form4562 and SE for the current year.