Use the following information to complete Johnelle and Latoya Henry's 2018 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. You may need the following forms to complete the project: Form 1040 and Schedule A. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms. Facts: Page C-4 Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mother's company, Long-term Investments, Inc., a full-service wealth-planning firm. They provide the following information: Page C-3 They both want to contribute to the presidential election campaign. They live at 9876 Old Waverly, Charleston, South Carolina. Johnelle's birthday is 7/17/1965 and his Social Security number is 555-12-6789. Latoya's birthday is 9/11/1967 and her Social Security number is 987-65-4321. Johnelle or Latoya do not have any foreign bank accounts or trusts. Johnelle received a Form W-2 from Toys Unlimited, Inc. that contained the following information: • Line 1 Wages, tips, other compensation: $45,000 • Line 2 Federal income tax withheld: 7,500 • Line 3 Social Security wages: 45,000 • Line 4 Social Security tax withheld: 2,790 • Line 5 Medicare wages and tips: 45,000 • Line 6 Medicare tax withheld: 653 • Line 17 State income tax: 2,200 Latoya received a Form W-2 from Long-term Investments, Inc. that contained the following information: • Line 1 Wages, tips, other compensation: $85,000 • Line 2 Federal income tax withheld: 12,500 • Line 3 Social Security wages: 85,000 • Line 4 Social Security tax withheld: 5,270 • Line 5 Medicare wages and tips: 85,000 • Line 6 Medicare tax withheld: 1,233 • Line 17 State income tax: 4,200 Johnelle and Latoya incurred the following medical expenses for the year: • Transportation to Chicago for Johnelle's cancer treatment: 2,000 miles • Unreimbursed hospital charges for Johnelle: $6,500 • Unreimbursed prescription drug charges for Johnelle and Latoya: 1,750 • Unreimbursed physician charges for Johnelle and Latoya: 2,200 • Unreimbursed prescription glasses for Latoya: 150 • Laser hair treatment for Latoya (so that she will no longer need to shave her legs) 2,000 Johnelle and Latoya paid $12,000 of interest payments on their primary residence (acquisition debt of $225,000). They also paid $1,750 of interest expense on Latoya's car loan and $500 of interest on their Visa card. Johnelle and Latoya paid $4,000 of real estate taxes on their home and $1,000 of real estate tax on a vacant lot they purchased with the hope of building their dream home in the future. They also paid $3,000 in sales tax on Latoya's car and other purchases and $1,000 of ad valorem tax on their cars. Johnelle and Latoya made the following contributions this year: • American Red Cross $ 200 • United Way 150 • St. Joseph's Catholic Church 8,000 •Food for the family of Hannah Barbara (a neighbor who suffered a tragic car accident this past year) 225 • Stock transfer to the University of South Carolina (originally purchased for $1,000 in 2005) 750 Johnelle won $5,000 in the state lottery. He has been playing the lottery for years [$10 in lottery tickets every week ($520 in total) that he saves to keep track of the numbers he plays]. Johnelle and Latoya have qualifying insurance for purposes of the Affordable Care Act (ACA). U.S. Tax Provisions Use 1040 form And where they go on the form

Use the following information to complete Johnelle and Latoya Henry's 2018 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. You may need the following forms to complete the project: Form 1040 and Schedule A. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms. Facts: Page C-4 Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mother's company, Long-term Investments, Inc., a full-service wealth-planning firm. They provide the following information: Page C-3 They both want to contribute to the presidential election campaign. They live at 9876 Old Waverly, Charleston, South Carolina. Johnelle's birthday is 7/17/1965 and his Social Security number is 555-12-6789. Latoya's birthday is 9/11/1967 and her Social Security number is 987-65-4321. Johnelle or Latoya do not have any foreign bank accounts or trusts. Johnelle received a Form W-2 from Toys Unlimited, Inc. that contained the following information: • Line 1 Wages, tips, other compensation: $45,000 • Line 2 Federal income tax withheld: 7,500 • Line 3 Social Security wages: 45,000 • Line 4 Social Security tax withheld: 2,790 • Line 5 Medicare wages and tips: 45,000 • Line 6 Medicare tax withheld: 653 • Line 17 State income tax: 2,200 Latoya received a Form W-2 from Long-term Investments, Inc. that contained the following information: • Line 1 Wages, tips, other compensation: $85,000 • Line 2 Federal income tax withheld: 12,500 • Line 3 Social Security wages: 85,000 • Line 4 Social Security tax withheld: 5,270 • Line 5 Medicare wages and tips: 85,000 • Line 6 Medicare tax withheld: 1,233 • Line 17 State income tax: 4,200 Johnelle and Latoya incurred the following medical expenses for the year: • Transportation to Chicago for Johnelle's cancer treatment: 2,000 miles • Unreimbursed hospital charges for Johnelle: $6,500 • Unreimbursed prescription drug charges for Johnelle and Latoya: 1,750 • Unreimbursed physician charges for Johnelle and Latoya: 2,200 • Unreimbursed prescription glasses for Latoya: 150 • Laser hair treatment for Latoya (so that she will no longer need to shave her legs) 2,000 Johnelle and Latoya paid $12,000 of interest payments on their primary residence (acquisition debt of $225,000). They also paid $1,750 of interest expense on Latoya's car loan and $500 of interest on their Visa card. Johnelle and Latoya paid $4,000 of real estate taxes on their home and $1,000 of real estate tax on a vacant lot they purchased with the hope of building their dream home in the future. They also paid $3,000 in sales tax on Latoya's car and other purchases and $1,000 of ad valorem tax on their cars. Johnelle and Latoya made the following contributions this year: • American Red Cross $ 200 • United Way 150 • St. Joseph's Catholic Church 8,000 •Food for the family of Hannah Barbara (a neighbor who suffered a tragic car accident this past year) 225 • Stock transfer to the University of South Carolina (originally purchased for $1,000 in 2005) 750 Johnelle won $5,000 in the state lottery. He has been playing the lottery for years [$10 in lottery tickets every week ($520 in total) that he saves to keep track of the numbers he plays]. Johnelle and Latoya have qualifying insurance for purposes of the Affordable Care Act (ACA). U.S. Tax Provisions Use 1040 form And where they go on the form

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Use the following information to complete Johnelle and Latoya Henry's 2018 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

You may need the following forms to complete the project: Form 1040 and Schedule A. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms.

Facts:

Page C-4

Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mother's company, Long-term Investments, Inc., a full-service wealth-planning firm. They provide the following information:

Page C-3

They both want to contribute to the presidential election campaign.

They live at 9876 Old Waverly, Charleston, South Carolina.

Johnelle's birthday is 7/17/1965 and his Social Security number is 555-12-6789.

Latoya's birthday is 9/11/1967 and her Social Security number is 987-65-4321.

Johnelle or Latoya do not have any foreign bank accounts or trusts.

Johnelle received a Form W-2 from Toys Unlimited, Inc. that contained the following information:

• Line 1 Wages, tips, other compensation:	$45,000
• Line 2 Federal income tax withheld:	7,500
• Line 3 Social Security wages:	45,000
• Line 4 Social Security tax withheld:	2,790
• Line 5 Medicare wages and tips:	45,000
• Line 6 Medicare tax withheld:	653
• Line 17 State income tax:	2,200

Latoya received a Form W-2 from Long-term Investments, Inc. that contained the following information:

• Line 1 Wages, tips, other compensation:	$85,000
• Line 2 Federal income tax withheld:	12,500
• Line 3 Social Security wages:	85,000
• Line 4 Social Security tax withheld:	5,270
• Line 5 Medicare wages and tips:	85,000
• Line 6 Medicare tax withheld:	1,233
• Line 17 State income tax:	4,200

Johnelle and Latoya incurred the following medical expenses for the year:

• Transportation to Chicago for Johnelle's cancer treatment:	2,000 miles
• Unreimbursed hospital charges for Johnelle:	$6,500
• Unreimbursed prescription drug charges for Johnelle and Latoya:	1,750
• Unreimbursed physician charges for Johnelle and Latoya:	2,200
• Unreimbursed prescription glasses for Latoya:	150
• Laser hair treatment for Latoya (so that she will no longer need to shave her legs)	2,000

Johnelle and Latoya paid $12,000 of interest payments on their primary residence (acquisition debt of $225,000). They also paid $1,750 of interest expense on Latoya's car loan and $500 of interest on their Visa card.

Johnelle and Latoya paid $4,000 of real estate taxes on their home and $1,000 of real estate tax on a vacant lot they purchased with the hope of building their dream home in the future. They also paid $3,000 in sales tax on Latoya's car and other purchases and $1,000 of ad valorem tax on their cars.

Johnelle and Latoya made the following contributions this year:

• American Red Cross	$ 200
• United Way	150
• St. Joseph's Catholic Church	8,000
•Food for the family of Hannah Barbara (a neighbor who suffered a tragic car accident this past year)	225
• Stock transfer to the University of South Carolina (originally purchased for $1,000 in 2005)	750

Johnelle won $5,000 in the state lottery. He has been playing the lottery for years [$10 in lottery tickets every week ($520 in total) that he saves to keep track of the numbers he plays].

Johnelle and Latoya have qualifying insurance for purposes of the Affordable Care Act (ACA).

U.S. Tax Provisions

Use 1040 form

And where they go on the form

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