Individual income taxes: tax return

58. Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan’s SSN is 111-11-1112, and Fredia’s is 123-45-6789. Dan was born on 1/15/67.

   During 2018 Dan and Freida furnished over half of the total support of each of the following individuals, all of whome still live at home:

Gina, their daughter 22 a full time student who married on 12/21/18 has no income of her own and for 2018 did not file a joint return with her husband Casey, who earned $10,600.00 during 2018. Gina’s SSN is 123-45-6788

Sam their son is 20 who had a gross income of 6300 in 2018 dropped out of college in October 2018. HE had graduated high school in May 2018. Sam’s SSN is 123-45-6787.

Ben their oldest son age 26 is a full time graduate student with gross income of 5200. Ben’s SSN is 123-45-6786

Dan was employed as a manager by WJJJ, inc. EIN # 11-11111111, 604 Franklin Street Corbin KY 40702, and Freida was employed as a salesperson for Corbin Realty KY 40701. Selected information from the W-2 forms provided by the employers is presented below. Dan and Freida use the cash method.

Line                        Description                                             Dan                 Freida

1                             Wages,tips, other compensation        74,000            86,000

2                             Federal income tax withheld                11,000            12,400

17                           State income tax withheld                       2,960              3,440

Freida sold a house on 12/30/18 and will be paid a commission of $3100(not included in the 86k reported on W-2) on the January 10, 2019 closing date.

     Other income (as reported on 1099 forms) for 2018 consisted of the following:

    Dividends on CSX stock (qualified)  700.00

     Interest on savings at Second bank 1600.00

     Interest on City of Corbin bonds           900.00

     Interest on First Bank CD                         382. 00

The $382 from First Bank was original issue discount. Dan and Freida collected 16k on the First Bank CD that matured on 09/30/18. The CD was purchased on 10/1/16 for $14,995.00 and the yield to maturity was 3.3%

Dan received a Schedule K-1 from Falcon Partnership which showed his distribution share of income as $7,000.00. In addition to the above information, Dan and Freida’s itemized deductions included the following:

    Paid on 2018 Kentucky income tax          700.00

    Personal property tax paid                         600.00

     Real estate taxes paid                               1,800.00

     Interest on home mortage (Corbin S&L) 4,900.00

     Cash contributions to the Boy Scouts        800.00

Sales tax from the sales tax table is $1,860. Dan and Freida made estimated tax payments of $8000.00. The Kentucky income tax rate is 4%.

Part 1- Tax Computation

Compute Dan and Freida’s 2018 icome tax payable (or refund due) If you use tax forms for the computations you will need Form 1040 and Schedules A, B and E

Part 2 Tax Planning

Dan plans to reduce his work schedule andonly work half time for WJJJ in 2019. He has been writing songs for several years and wants to devote his time to developing a career as a songwriter. Because of the uncertainty in the music business, however, he would like you to make all computations assuming that he will have no income from song writing in 2019. To make up for the loss of income Freida plans to increase the amount of time she spends selling real estate. She estimates that she will be able to earn $90k in 2019. Assume that all other income and expense items will be approximately the same as they were for 2019. Assume that Sam will be in enrolled in college as a full time student for the summer and fall semesters. Will the Butlers have more or less disposable income (after Federal income tax) in 2019? Write a letter to the Butlers that contains your advice and prepare a memo for the tax files.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Essay USA, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Essay USA has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At Essay USA, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.