Assignment 2: Form 1040A Problem WEEK 2 – HOMEWORK 2 Facts: The taxpayer is: Sal
ID: 2544288 • Letter: A
Question
Assignment 2: Form 1040A Problem
WEEK 2 – HOMEWORK 2
Facts:
The taxpayer is:
Sally Student
123 Maple Street
Cincinnati, Ohio 44000
Social Security No. 123-45-6789
Sally is a 30-year old single person. She is an accountant and also works a side weekend job in an art gallery. She is not claimed as a dependent by anyone else. For 20XX, she had the following
INCOME:
1. W-2 from 1st employer
Gross wages income: $13,164
Federal Withholding $ 921
2. W-2 from 2d employer
Gross wages $50,000.00
Federal withholding $ 9,500.00
3. Interest income from bank $132.00
4 Interest from brokerage firm $2,100.00
5. Ordinary "qualified" dividends from large U.S. Corporation: $3,000.00
To do:
Go the IRS website at irs.gov, and get a Form 1040A and instructions, and also a Schedule B. Use these, with the facts above, to prepare a Form 1040A for Sally for the most recent year for which there is a form (this is almost always the calendar year prior to the present year). Remember to consider both the standard deduction and the personal exemption, if any. Remember to consider both the standard deduction and the personal exemption, if any.
Explanation / Answer
Standard deduction will applicable upto $6300 because Sally is a single person not dependent on others or any one not depend on her so personal decuction not applicable
Salary including Federal with holding=73585
Income from bank =132
income from brokerage firm =2100
income from dividend =3000
Adjusted income =63164
standard deduction =6300
taxable income =56867