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.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Use the discount code "30OFFNOW" today and get a 30% offOrder Now