Comprehensive Problem One Noah and Joan Arc\'s Tax Return Noah and Joan Arc live
ID: 2567204 • Letter: C
Question
Comprehensive Problem One Noah and Joan Arc's Tax Return Noah and Joan Arc live with their family at 4342 Tosie lo, Santee, CA 92071. Noah's Social Security number is 434-11-3311; Joan's is 456-87-5432. Both are in their mid-30s and enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a fire-fighter for the city 1The Arcs have two children, a son named Billie Bob (Social Security number 598-01 2345), who is 7 years old, and a daughter named Mary Sue (Social Security number 554-33-2411), who is 4 years old.The Arcs paid $3,200 to the Roundup Day Care Cen ter to take care of Mary Sue while they worked. Because Joan is a firefighter, she was home in the afternoon to care for Billie Bob after school. 2. For the current year, Joan's W-2 from the city fire department is located on Page D-4 Noah made estimated federal income tax payments of $12,000 and estimated state income tax payments of $1,020 during the current year 3. Noah's pet store is located at 18542 Mission Road, Santee, CA 92071. The name of the store is "The Arc," and its taxpayer ID number is 95-9876556. The beginning inventories and ending inventories are both $10,000. The revenue and expenses for the year are as follows: $ 144,300 Sales revenu Expenses Cost of sales Insurance Accounting fees Wages Payroll taxes Business meals (total) Utilities Rental expense $61,900 780 1,800 25,100 2,250 400 2,650 7,600 4. Noah and Joan paid the following amounts during the year (all by check): $250 Political contributions Church donations (for which a written acknowledgment was received) Real estate taxes on their home Medical Fees Mortgage interest for purchase of home Tax return preparation fees Credit card interest Automobile insurance premiums Uniforms for Joan 2,625 1,350 700 See Form 1098 (Page D-5) 350 220 600 125Explanation / Answer
Find below the table showing all information required
Head
Particular
Amount
Remarks
General
Filing Status
Married filing jointly
Number of Exemptions
4
Number of children that are under age 17.
2
Health Coverage
4
Earned Income Credit
Number of children under age 19.
2
Income
Wages, Salaries and Tips
Interest & Non-Stock Dividends
Stock/Qualified Dividends
842
Short-Term Capital Gains
700
6000-5300
Long-Term Capital Gains
12700
4500+12200-2400-1600
Business Income/(Loss) - Schedule C or F
41820
IRA/Pension Distributions
Unemployment Compensation
Social Security Benefits
Other Income
13800
rent
Adjustments
Health Savings Account (HSA) Deduction
Moving Expenses
Self-Employment Health Insurance Deduction
Alimony Paid
IRA Contributions
Student Loan Interest Paid
Itemized Deductions
Medical Expenses
Real Estate Taxes
2350
1350+1000
Personal Property Taxes Paid
Mortgage Interest & Points Paid
11100
Gifts to Charity
2700
Miscellaneous Expenses
350
Tax return fees
State Taxes Paid
2260
Credits
Child and Dependent Care Credit
3200
Education Credits
Repayment of ’2008’ First Time Homebuyer Credit
Payments
Federal Income Taxes Withheld From Wages
Federal Income Taxes Withheld From IRA/Pension Distributions
Federal Income Taxes Withheld From Unemployment Compensation
Other Federal Income Tax Paid Estimated Tax Payments.
12000
from above details following summary
Gross Income
69862
Adjustments to Income
2955
Adjusted Gross Income
66908
Exemptions
16000
Standard/Itemized Deductions
18410
Taxable Income
32498
Tax
1924
Child and Dependent Care Credit
600
Education Credit
0
Retirement Contribution Credit
0
Child Tax Credit
1324
Self-Employment Tax
5909
Health Care Penalty
0
Total Tax
5909
Federal Tax Payments
12000
Earned Income Credit
0
Additional Education Credit
0
Additional Child Tax Credit
676
Repayment of First-Time Homebuyer Credit
0
They can claim the refund of $6767
Head
Particular
Amount
Remarks
General
Filing Status
Married filing jointly
Number of Exemptions
4
Number of children that are under age 17.
2
Health Coverage
4
Earned Income Credit
Number of children under age 19.
2
Income
Wages, Salaries and Tips
Interest & Non-Stock Dividends
Stock/Qualified Dividends
842
Short-Term Capital Gains
700
6000-5300
Long-Term Capital Gains
12700
4500+12200-2400-1600
Business Income/(Loss) - Schedule C or F
41820
IRA/Pension Distributions
Unemployment Compensation
Social Security Benefits
Other Income
13800
rent
Adjustments
Health Savings Account (HSA) Deduction
Moving Expenses
Self-Employment Health Insurance Deduction
Alimony Paid
IRA Contributions
Student Loan Interest Paid
Itemized Deductions
Medical Expenses
Real Estate Taxes
2350
1350+1000
Personal Property Taxes Paid
Mortgage Interest & Points Paid
11100
Gifts to Charity
2700
Miscellaneous Expenses
350
Tax return fees
State Taxes Paid
2260
Credits
Child and Dependent Care Credit
3200
Education Credits
Repayment of ’2008’ First Time Homebuyer Credit
Payments
Federal Income Taxes Withheld From Wages
Federal Income Taxes Withheld From IRA/Pension Distributions
Federal Income Taxes Withheld From Unemployment Compensation
Other Federal Income Tax Paid Estimated Tax Payments.
12000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.