Required: Use the following information to complete Rhonda Hill's federal income tax return. If any information is missing, use reasonable assumption to fill in the gaps. Prepare this return for the year ending December 31, 2021 • • You may use any tax software program to complete the return, or you can do them manually by downloading fillable forms from the IRS website (www.irs.gov). • The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter & Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in her home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel's support. Rhonda also provided the following information. • Rhonda's birthday is 12/18/1955 and her SS # is 335-67-8910 • Mabel's birthday is 11/2/1946 and her SS # is 566-77-8899 • Rhonda does not have any foreign bank accounts or trusts • Rhonda did not acquire, sell, or exchange virtual currency in 2021. 2. Rhonda received a Form W-2 from Carter & Associates that contained the following information: Line 1, 3, 5, and 16 Wages • Line 2 Federal Income Tax withheld Line 4 Social Security Tax withheld Line 6 Medicare Tax withheld Line 17 State Income Tax withheld Carter & Associates address is: 1234 CPA Way, Tulsa, OK 74101 Carter & Associates FEIN is 91-0001002 Carter & Associates State ID # is: 124352667 • ● Rhonda does not want to contribute to the presidential election campaign. Rhonda lives at 1234 Blue Ridge Way, Tulsa, OK 74101 . ● ● $72,000 7,800 4,464 1,044 2,700
Required: Use the following information to complete Rhonda Hill's federal income tax return. If any information is missing, use reasonable assumption to fill in the gaps. Prepare this return for the year ending December 31, 2021 • • You may use any tax software program to complete the return, or you can do them manually by downloading fillable forms from the IRS website (www.irs.gov). • The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter & Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in her home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel's support. Rhonda also provided the following information. • Rhonda's birthday is 12/18/1955 and her SS # is 335-67-8910 • Mabel's birthday is 11/2/1946 and her SS # is 566-77-8899 • Rhonda does not have any foreign bank accounts or trusts • Rhonda did not acquire, sell, or exchange virtual currency in 2021. 2. Rhonda received a Form W-2 from Carter & Associates that contained the following information: Line 1, 3, 5, and 16 Wages • Line 2 Federal Income Tax withheld Line 4 Social Security Tax withheld Line 6 Medicare Tax withheld Line 17 State Income Tax withheld Carter & Associates address is: 1234 CPA Way, Tulsa, OK 74101 Carter & Associates FEIN is 91-0001002 Carter & Associates State ID # is: 124352667 • ● Rhonda does not want to contribute to the presidential election campaign. Rhonda lives at 1234 Blue Ridge Way, Tulsa, OK 74101 . ● ● $72,000 7,800 4,464 1,044 2,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:### Financial and Medical Records Analysis for Educational Purpose
#### 3. Investment Income and Dividends
- Rhonda received $250 in interest from Tulsa City bonds.
- She earned $120 in interest from IBM bonds.
- Her savings account at UCU Credit Union generated $15 in interest.
- She obtained dividends totaling $460 from Huggies Company and $500 from Bicker Corporation, both of which are qualified dividends.
#### 4. Stock Transactions
- **Sale of DM Stock:**
- Rhonda sold 200 shares of DM stock at $18 per share on June 15, 2021.
- The stock was purchased on December 12, 2013, for $10 per share.
- **Sale of RSA Stock:**
- She sold 50 shares of RSA stock at $15 per share on October 2, 2021.
- The purchase price for these shares was $65 per share on February 2, 2021.
#### 5. Medical Expenses
Rhonda’s medical expenses for the year, excluding insurance reimbursements, are as follows:
- Insurance Premiums: $3,700
- Prescription Medications: $100
- Over-the-Counter Medication: $250
- Doctor and Dentist Visits: $1,450
- Eyeglasses: $300
- Physical Therapy: $200
- Additionally, Rhonda traveled 210 miles for medical purposes in 2021.
#### 6. Mortgage and Property Tax
- Rhonda paid $6,800 in mortgage interest to UCU Credit Union, as reported on Form 1098.
- She also paid $1,240 in real property taxes throughout the year.
#### 7. Charitable Contributions
- Rhonda contributed $5,400 to Heavenly Church in 2021.
- The church's address is 1342 Straight Way, Tulsa, OK 74101.
These records provide a comprehensive overview of Rhonda’s financial activities and medical expenses throughout the year, giving insights into her investment returns, healthcare expenditures, and philanthropic contributions.
Transcribed Image Text:### Required:
- **Use the following information to complete Rhonda Hill’s federal income tax return.**
If any information is missing, use reasonable assumptions to fill in the gaps.
- **Prepare this return for the year ending December 31, 2021.**
- **You may use any tax software program to complete the return, or you can do them manually by downloading fillable forms from the IRS website (www.irs.gov).**
- **The forms, schedules, and instructions can be found at the IRS website (www.irs.gov).**
The instructions can be helpful in completing the forms.
### Facts:
1. **Rhonda Hill** (unmarried) is employed as an office manager at the main office of Carter & Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda’s older cousin Mabel Wright lives with Rhonda in her home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel’s support. Rhonda also provided the following information:
- Rhonda does not want to contribute to the presidential election campaign.
- Rhonda lives at 1234 Blue Ridge Way, Tulsa, OK 74101
- Rhonda’s birthday is 12/18/1955 and her SS # is 335-67-8910
- Mabel’s birthday is 11/2/1946 and her SS # is 566-77-8899
- Rhonda does not have any foreign bank accounts or trusts
- Rhonda did not acquire, sell, or exchange virtual currency in 2021.
2. **Rhonda received a Form W-2 from Carter & Associates that contained the following information:**
- Line 1, 3, 5, and 16 Wages: $72,000
- Line 2 Federal Income Tax withheld: $7,800
- Line 4 Social Security Tax withheld: $4,464
- Line 6 Medicare Tax withheld: $1,044
- Line 17 State Income Tax withheld: $2,700
- Carter & Associates address is: 1234 CPA Way, Tulsa, OK 74101
- Carter & Associates FEIN is: 91-0001002
-
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
Other than 1040, what other forms need to be completed?
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education