INDIVIDUAL TAX RETURN PROBLEM
Use the following information to complete Rhonda Hill’s 2013 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.
Rhonda Hill Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in the home. Mabel is retired and receives $2,400 of Social Security income each year. Mable's is able to save these funds because Rhonda provides all of Mabel's support. Rhonda also provided the following information. Fill out the forms 1040, Schedule A, Schedule B, Schedule D or any other required forms.
1. Rhonda received a Form W-2 Form from Carter and Associates that contained the following information: Line 1 wages, tips, other compensation $72,000 Line 2 Federal income tax withheld $9,300 Line 3 Social Security Wages $72,000 Line 4 Social Security tax withheld $4,464 Line 5 Medicare wages and tips $72,000 Line 6 Medicare tax withheld $1,044 Line 16 State Wages, tips, etc. $ 72,000 Line 17 State income tax $2,700.
2. Rhonda received $250 in interest from Tulsa City Binds, $120 interest from IBM bonds, and $15 from her savings account at UCCU Credit Union. She also received a $460 dividend from Huggies Company and $500 from Bicker Corporation. Both dividends were qualified dividends. 3. Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2011. She purchased the stock on December 12, 2006 for $10 a share. She also sold 50 shares of RSA stock for $15 a share on October 2, 2011. She purchased the stock for $65 a share on February 2, 2011.
4. The following is a record of the medical expense that Rhonda paid for herself during the year. The amounts reported are amounts she paid in excess of insurance reimbursements Insurance Premiums $3,700 Prescription medications 100 Over-the-counter medications 250 Doctor and dentist visits 1,485 Eyeglasses 300 Physical Therapy 200.
5. Rhonda paid $2,800 in mortgage interest during the year to UCU credit union. She also paid $1,200 in real property taxes during the year
6. Rhonda contributed $2,350 to Heavenly Church during the year. Heavenly Church's address is XXXXX Tulsa, OK 74101