Tax

ITEMIZED DEDUCTIONS PROJECT

50 POINTS

Use the Tax Act software, provided with the textbook, to prepare a 2013 Schedule A for Jack O. Lantern.

This assignment is due Monday 10/13/14, 5:30 P.M. There will be no extensions granted.

Below is the information you need to prepare Jack O. Lantern’s 2013 Schedule A. Do not assume any information that is not supplied. Jack’s Social Security number is 412-33-2415.

Jack O. Lantern has been divorced for 5 years and is filing as a single taxpayer. Jack has no dependents, his only child, Larry, is claimed as a dependent on Jack’s ex-wife’s tax return. Jack’s only income is a $100,000 in wages. Jack pays $1,000 a month in child support and $500 a month in alimony. In 2013 he paid the following:

1) He had paid the dentist $1,800 for a root canal and $200 for routine cleanings.

2) He paid his own doctor and hospital bills of $3,000.

3) Jack’s employer deducted $6,000 from Jack’s wages for health insurance premiums for him and his son ($3,000 each).

4) In 2013 Jack’s ex-wife saw a psychologist and Jack paid $1,500 of the psychologist’s bills.

5) Jack’s son Larry was an in-patient at a drug rehabilitation facility for a month in 2013. Jack paid the total fee of $5,000, which included counseling, meals and lodging, on his credit card in December of 2013. He paid the credit card bill in January of 2014.

6) Jack paid $4,000 to a veterinarian for a heart transplant for his dog.

7) Jack paid $3,000 for real estate taxes on his principal residence.

8) He also paid $1,000 for real estate taxes on an acre of land he bought as an investment.

9) Jack’s W-2 indicated that he had the following deductions Federal income taxes withheld of $12,000, State income taxes withheld of $6,000 and FICA withheld of $6,450.

10) Jack filed his 2012 State income tax on April 15, 2013 and paid an amount due of $3,500 when he filed the return.

11) Jack lived in Maryland all of 2013. He did not have any large purchases that he paid state sales tax on.

12) Jack donated $12,000 in cash to the Church.

13) Jack gave a scooter to the Salvation Army. He had bought the scooter 2 years earlier for $2,000, at the time he donated the scooter it was worth $500.

14) Jack paid $300 for an airline ticket for his son Larry to use to go on a missionary trip.

15) Jack paid the bank $7,000 in mortgage interest on his principal residence.

16) He paid $500 interest on the lot he had bought for investment purposes.

17) He also paid $1,250 interest on his credit cards.