Question Details

Answered: - i have to fill out a tax 1040 form for my accounting problem,


i have to fill out a tax 1040 form for my accounting problem, please help.


Instructions:

 

Please complete the 2015 federal income tax return for Magdalena Schmitz. Ignore the requirement to

 

attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use

 

reasonable assumptions to fill in the gaps.

 

Magdalena Schmitz has undergone some major changes in her life recently. In 2013, at the age of 46, her

 

husband, Roger, passed away. Magdalena has not remarried as of the end of 2015. Magdalena currently

 

lives in Bedford, Pennsylvania. She was living in Pittsburgh when her husband passed away but she

 

moved back to her childhood home so she could get help from her family raising her children.

 

Magdalena was employed in Pittsburgh early in the year but left that job and relocated 100 miles away

 

to pursue a new life and start her new job. Magdalena has three children (ages as of the end of the

 

year): Alyssa (23), Tyler (16), and Connor (11). Magdalena would like to determine her federal income

 

tax under the filing status that is most advantageous for her.

 

Magdalena reported the following information:

 


 


 


 


 


 


 

Magdalena?s social security number is 294-83-2845

 

Alyssa?s social security number is 824-84-8456

 

Tyler?s social security number is 824-34-9584

 

Connor?s social security number is 824-56-2984

 

Magdalena?s mailing address is 623 S. Liberty Road Bedford, Pennsylvania 15522

 


 

Alyssa is unmarried and a full-time graduate student at Pennsylvania State University (PSU) (EIN 339876543). PSU?s address is 1250 Happy Valley, State College, PA 16801. She received her bachelor?s

 

degree the year her father passed away. This year represents her fifth year of full-time higher education

 

schooling. Alyssa works part-time in State College to help with some of her living expenses. Alyssa

 

earned $2,300 in gross income during the year and had her income tax return prepared on campus by

 

Volunteer Income Tax Assistance (VITA) volunteers. Magdalena provided support for Alyssa including

 

paying for rent, books, tuition, food, clothes, medicine, and other support items. In total, Magdalena

 

provided $12,700 of support for the year. PSU provided Alyssa with a Form 1098-T at year end.

 

Alyssa?s higher education expenses for her university studies were as follows:

 

Tuition

 

$6,500

 

Books

 

$2,000

 


 

In order to permit Magdalena to maintain a full-time job, she sends Connor to a day care program after

 

school five days a week. During the year, Magdalena paid the day care operator $4,250 for Connor?s

 

care.

 

The day care details are as follows:

 

Horizon Day Care

 

452 S. Patriot Road

 

Bedford, PA 15522

 

EIN-43-6598324

 

Magdalena incurred the following moving-related expenses during the year:

 

Household items

 

Meals in transit

 

House hunting trip

 


 

$3,200

 

150

 

1,350

 


 

In addition she drove her car the 100 miles to Bedford as part of the move. Her previous workplace was

 

located 10 miles from the previous home she was renting and her new job is exactly 100 miles away

 

from her prior residence.

 

Magdalena?s W-2s for the year reported the following:

 

Employer

 

Juniata Development

 

Corporation

 

Pittsburgh Real Estate

 


 

Gross Wages

 

$28,435

 


 

Federal Income Tax

 

Withholding

 

$900

 


 

State Income Tax

 

Withholding

 

$700

 


 

$2,450

 


 

$200

 


 

$125

 


 

Magdalena?s employers withheld all applicable and appropriate payroll taxes. The entire Schmitz family

 

was covered by minimum essential health insurance during each month in 2015. The insurance was

 

provided by Magdalena?s employers.

 

On January 1, 2014 (prior year), Magdalena started a photography business in which she takes bridal and

 

wedding photographs. She does not do any of the professional printing. However, she provides all of

 

the original negatives to her clients on a password-protected web site as part of her service. This unique

 

service along with her skill and reputation has allowed her to earn additional money on the weekends,

 

primarily in the summer, to help support her daughter in college. Magdalena rents all of the camera

 

equipment from a friend and does not currently own any equipment herself. The photography business

 

uses the cash method of accounting. The business did not have any obligation to file a Form 1099 to any

 

payee during the year. Magdalena reported the following revenue and expenses for her business for the

 

year:

 

Gross Revenue

 

Photographic supplies

 

Camera rental

 

Web site hosting fee

 


 

$6,500

 

$ 430

 

$1,050

 

$ 200

 


 

Magdalena also received the following during the year:

 


 

Cash gift from her father

 

Interest income-First Bank of Bedford

 

Interest income-General Electric Bond

 

Interest income-Bedford School District Municipal Bond

 

Interest income-Johnstown Rural Improvement District Bond

 


 

$

 

$

 

$

 

$

 

$

 


 

5,000

 

310

 

3,200

 

2,500

 

1,300

 


 

Magdalena did not own, control or manage any foreign bank accounts nor was she a grantor or

 

beneficiary of a foreign trust during the tax year.

 

Magdalena paid or incurred the following expenses during the year:

 

Dentist (unreimbursed by insurance)

 

Doctors (unreimbursed by insurance)

 

Prescriptions (unreimbursed by insurance)

 

Real property taxes on residence

 

Vehicle registration fee based upon age of vehicle

 

Mortgage interest on principal residence (Form 1098 received)

 

Contribution to the American Lung Association

 

Contribution to the Habitat for Humanity

 

Contribution to Methodist Church of PA

 

Contribution to Penn State University

 


 

$1,500

 

$ 475

 

$ 255

 

$ 950

 

$ 175

 

$6,845

 

$ 600

 

$1,000

 

$3,000

 

$ 400

 


 

Magdalena wants to contribute to the Presidential Election Campaign. She would like to receive a refund

 

(if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by

 

check.

 


 

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Oct 07, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now