taxation

FORM 1040 DATA TAX YEAR 2019

THEIR ADDRESS IS 121 COOKE STREET EAST PROVIDENCE, RI 02914.

ALEX 037-40-3333 PIETRO 358-74-1111

RITA 123-58-9744 DONATELLA 037-41-6112

INCOME

ALEX'S SALARY:

TAXABLE WAGES 126,000 FEDERAL INCOME TAX WITHHELD 14,500 STATE INCOME TAX WITHHELD 4,500

INTEREST INCOME FROM SANTANDER BANK. 1,200

INTEREST FROM U.S. SAVINGS BONDS. 3,500

INTEREST INCOME FROM MUNICIPAL BONDS. 4,500

2,000

LONG-TERM CAPITAL GAIN INCOME. 5,000

50,000

RITA MADE FOUR QUARTERLY ESTIMATED TAX PAYMENTS OF $1,250. 5,000

200

22,000

DEDUCTIONS

THESE ARE RITA'S BUSINESS EXPENSES FROM HER CONSULTING BUSINESS:

OFFICE EXPENSE 600 TELEPHONE 800 EQUIPMENT RENTAL 1,200 INTERNET 500 ADVERTISING 600 TRAVEL 1,800

DIVIDEND INCOME FROM VANGUARD FUNDS. THEY ARE QUALIFIED DIVIDENDS.

ALEX AND RITA SANTANDER ARE MARRIED. THEY ALWAYS FILE A JOINT TAX RETURN. THEY HAVE TWO DEPENDENT CHILDREN. DONATELLA IS 21 YEARS OLD AND IS A FULL-TIME STUDENT IN COLLEGE. PIETRO IS FOUR YEARS OLD. ALEX IS 45 AND RITA IS 40. ALEX IS A SALESMAN AND RITA IS A CONSULTANT.

PROCEEDS FROM LIFE INSURANCE DUE TO UNCLE'S DEATH.

FOREIGN TAXES PAID ON MUTUAL FUNDS. THE SANTANDERS ALWAYS TAKE THEM AS A TAX CREDIT.

RITA IS SELF-EMPLOYED AS A CONSULTANT. SHE USES THE CASH BASIS. GROSS RECEIPTS TOTAL.

RITA USES PART OF THEIR HOUSE AS A HOME OFFICE. THE TOTAL SQUARE FOOTAGE IS 2,500 AND THE BUSINESS SQUARE FOOTAGE IS 200. SHE USES THE SIMPLIFIED METHOD,

4,800

ITEMIZED DEDUCTIONS:

REAL ESTATE TAXES 8,500 AUTOMOBILE TAXES 600 HOME MORTGAGE INTEREST ON $350,000 MORTGAGE 7,500 CASH CHARITABLE CONTRIBUTIONS 1,000 OUT-OF-POCKET MEDICAL EXPENSES PAID 6,000

RITA CONTRIBUTED TO A TRADITIONAL IRA. 3,000

THE SANTANDERS WANT THEIR TAX REFUND, IF ANY, TO BE DEPOSITED DIRECTLY INTO THEIR CHECKING ACCOUNT. THE ROUTING NUMBER IS 011500120 AND THE ACCOUNT NUMBER IS 123456789.

RITA PAYS ALIMONY TO HER EX-SPOUSE. HIS NAME IS WALTER RICHARDS AND HIS SOCIAL SECURITY NUMBER IS 157-88-8888. THE DIVORCE DECREE IS FROM OCTOBER 15, 2016.

WHICH IS $5 PER SQUARE FOOT.