The Park family consists of the following:
- Jackie O. Park; age 40; SSN: 123-45-6789; business analyst; single; unmarried
- Leslie T. Park; age 16; SSN: 234-56-7890; daughter; high-school student; lives at home
- Alex K. Park; age 12; SSN: 345-67-8901; son; middle-school student; lives at home
- Address: 132 Oakbrook Drive, Houston, Texas 77091
- The Parks do not want to contribute to the presidential election campaign
- Jackie does not receive child support. She pays all of the household expenses including the upkeep of Leslie and Alex. Only Jackie can claim Leslie and Alex as dependents.
- Her income tax rate is 13.05%. Do not use the Tax Tables (Note also that this rate is different from the self-employment tax rate.)
- Jackie also operates a realty company on a part-time basis. Her income from this business is from real estate sales during the year. She is a sole proprietor and her company’s name is Jaleal Realty Company. Jackie rents a small office to operate this business.
Jackie had the following earnings on her W-2:
- Wages: $55,159
- Federal tax withheld: $7,460
- Social Security tax withheld: $3,420
- Medicare tax withheld: $800
Jackie had the following income (as shown on Form 1099) and expenses from her business:
- Total self - employment income reported on Form 1099 was $23,000 and came from the real estate commissions earned from home sales.
Legal and professional
Other tax data:
- Texas State’s general sales tax deduction allowed is $924.
- Jackie received $610 of personal-interest income from her bank.
- She donated $230 in cash to her church during the year.
- Real estate taxes paid on her residence were $1,980, and the mortgage interest paid to her bank in New York, NY on the personal residence for the year was $16,000.
- Medical expenses for the family were as follows:
- medical insurance premium $3,244
- payments for doctor’s visits $1,760
- $850 was paid for dentists
- $230 for prescription drugs
To prepare Jackie O. Park's tax return without the aid of Tax preparation software, complete the following steps:
- Ensure that you have an Adobe Reader http://get.adobe.com/reader/ installed on your computer to open and use the downloadable IRS forms.
- Determine which forms are necessary for Jackie O. Park's tax return.
- Go to the IRS Web site and download the fill-in tax forms that you will need to complete: Form 1040 and the appropriate schedules.
- Complete all necessary downloaded fill-in forms on the computer and save.
- Save the completed forms as PDFs and upload for grading.
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