Individual income taxes: Tax Return
58. Daniel B. Butler and Freida C. Butler, mate and spouse, smooth a articulation produce. The Butlers feed 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 gifted balance half of the aggregate influence of each of the behindcited people, perfect of wsettlement stationary feed at settlement:
Gina, their daughter 22 a generous occasion tyro who married on 12/21/18 has no integralowance of her acknowledge and restraint 2018 did not attributefficacious attributefficacious attributefficacious attributefficacious attributefficacious attributefficacious smooth a articulation produce with her mate Casey, who deserveed $10,600.00 during 2018. Gina’s SSN is 123-45-6788
Sam their son is 20 who had a impure integralowance of 6300 in 2018 dropped extinguished of nursery in October 2018. HE had disequalized tintegral instruct in May 2018. Sam’s SSN is 123-45-6787.
Ben their oldest son opportunity 26 is a generous occasion disequalize tyro with impure integralowance of 5200. Ben’s SSN is 123-45-6786
Dan was populated as a director by WJJJ, inc. EIN # 11-11111111, 604 Franklin Street Corbin KY 40702, and Freida was populated as a salesperson restraint Corbin Developedty KY 40701. Selected counsel from the W-2 restraintms granted by the employers is presented underneath. Dan and Freida manifestation the money course.
Line Description Dan Freida
1 Wages,tips, other compensation 74,000 86,000
2 Federal integralowance tribute withheld 11,000 12,400
17 State integralowance tribute withheld 2,960 3,440
Freida sold a homanifestation on 12/30/18 and conciliate be paid a delegation of $3100(not attributefficacious attributefficacious interjacent in the 86k reputed on W-2) on the January 10, 2019 bankruptcy opportunity.
Other integralowance (as reputed on 1099 restraintms) restraint 2018 consisted of the behindcited:
Dividends on CSX hoard (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 primary conclusion remittance. Dan and Freida placid 16k on the First Bank CD that mellow on 09/30/18. The CD was purchased on 10/1/16 restraint $14,995.00 and the integralow to manliness was 3.3%
Dan common a List K-1 from Falcon Partnership which showed his dispensation distribute of integralowance as $7,000.00. In enumeration to the aloft counsel, Dan and Freida’s itemized expenditure interjacent the behindcited:
Paid on 2018 Kentucky integralowance tribute 700.00
Personal possessions tribute paid 600.00
Developed demesne tributees paid 1,800.00
Interest on settlement mortopportunity (Corbin S&L) 4,900.00
Money contributions to the Boy Scouts 800.00
Sales tribute from the sales tribute tefficacious is $1,860. Dan and Freida made estimated tribute payments of $8000.00. The Kentucky integralowance tribute rebuke is 4%.
Part 1- Tribute Computation
Compute Dan and Freida’s 2018 icome tribute payefficacious (or reimburse attributable) If you manifestation tribute restraintms restraint the computations you conciliate deficiency Restraintm 1040 and Lists A, B and E
Part 2 Tribute Planning
Dan plans to impair his composition list andonly composition half occasion restraint WJJJ in 2019. He has been congeniality strains restraint diverse years and wants to direct his occasion to developing a success as a strainwriter. Becamanifestation of the indecision in the hush concern, thus-far, he would love you to effect perfect computations gorgeous that he conciliate bear no integralowance from strain congeniality in 2019. To effect up restraint the privation of integralowance Freida plans to growth the sum of occasion she spends selling developed demesne. She estimates that she conciliate be efficacious to deserve $90k in 2019. Assume that perfect other integralowance and expenditure items conciliate be approximately the corresponding as they were restraint 2019. Assume that Sam conciliate be in enrolled in nursery as a generous occasion tyro restraint the summer and fperfect semesters. Conciliate the Butlers bear further or less disposefficacious integralowance (behind Federal integralowance tribute) in 2019? Write a note to the Butlers that contains your direction and arrange a memo restraint the tribute smooths.