Required Please complete the 2016 federal income tax retun for Magdalena Schmitz
ID: 2579266 • Letter: R
Question
Required Please complete the 2016 federal income tax retun for Magdalena Schmitz. If information is missing use reasonable assumptions to fill in the gaps. You may need Form 1040, Schedule A, Schedule B, Schedule C-EC, Schedule SE, Schedule 8812, and some supporting forms. Forms, schedules, and instructions to the forms and schedules can be found at the IRS website (www.irs.gov). Facts: Magdalena Schmitz has undergone some major changes in her life recently. In 2014, at the age of 46, her husband, Roger, passed away. Magdalena has not remarried as of the end of 2016. Magdalena currently lives in Bedford, Pennsylvania. She was living in Pittsburgh when her husband passed away but she moved back to her childhood home so she could get help from her family raising her children. Magdalena was employed in Pittsburgh carly in the year but left that job and relocated 100 miles away to pursue a new life and start her new job. Magdalena has three children (ages as of the end of the year): Alyssa (23), Tyler (16), and Connor) Magdalena would like to determine her federal income tax under the filing status that is most advantageous for her Magdalena reported the following information: .Magdalena's social security number is 294-83-2845 .Alyssa' s social security number is 824-84-8456 Tyler's social security number is 824-34-9584 .Connor's soci al security number is 824-56-2984 *Magdalena's mailing address is 623 S. Liberty Road Bedford. Pennsylvania 15522 Alyssa is unmarried and a full-time graduate student at Pennsylvania State University (PSU) EIN 33- 9876543). PSU's address is 1250 Happy Valley, State College, PA 16801. She received her bachelor's degree the year her father passed away. This year represents her fifth year of full-time higher education schooling. Alyssa works part-time in State College to help with some of her living expenses. Alyssa earned S2,300 in gross income during the year and had her income tax return prepared on campus by Volunteer Income Tax Assistance (VITA) volunteers. Magdalena provided support for Alyssa including paying for rent, books, tuition, food, clothes, medicine, and other support items. In total, Magdalena provided $12,700 of support for the year. PSU provided Alyssa with a Form 1098-T at year end Alyssa's higher education expenses for her university studies were as follows: Tuition S6,500 $2,000Explanation / Answer
Magdalena's eligible to use qualifying widow (err) with dependent child as filing status for 2 years following the year your spouse died. Her spouse died in the year of 2014.Magdalena has not remarried as of the end of 2016.
Magdalena's federal income tax under the filing status is Qualifying Widow (err) with Dependent Child.
Magdalena can’t claim alyssums higher education expenses for her university studies because Alyssa itself filling tax return.
Magdalena paid the day care operator $4,250 for Connors care, Magdalena's total expenses Connors care, may use to the credit should not be more than $3,000= $$4,250 - $3,000 = $1,250.
Magdalena incurred moving-related expenses not having exemption because her change was not related with job (because her main reason is pursue a life and then only start her new job. =$8050
She drove her car the 100 miles to Bedford as part of the move, she can claim up to 23.5 cents per miles,
Totally she can claim up to =$2,350.
Magdalena’s employers withheld all applicable and appropriate payroll taxes so can’t claim exemption from withholding for the current year, because she does not qualify from any one reason mentioned below for claim.
If Magdalena claims exemption from withholding, her employer will not withhold federal income tax from wages.
For the prior year, Magdalena? Had a right to a refund of all federal income tax withheld because she had no tax liability.
For the current year, Magdalena? Expect a refund of all federal income tax withheld because her expect to have no tax liability.
Income
Gross Revenue $6,500
ADD:
Life Insurance Payment-Mutual Life (Mothers passing) $150,000
Cash gift from her father $ 5,000
Interest income-First Bank of Bedford $ 310
Interest income-General Electric Bond $ 3,200
Interest income-Bedford School District Municipal Bond $ 2,500
Interest income-Johnstown Rural Improvement District Bond $ 1,300
PA state income tax refund* $ 325
___________
Total $169,135
_____________
Less: Expense
Dentist (unreimbursed by insurance) $1,500
Doctors (unreimbursed by insurance) $ 475
Prescriptions (unreimbursed by insurance) $ 255
Real property taxes on residence $ 950
Vehicle registration fee based upon age of vehicle $ 175
Mortgage interest on principal residence (Form 1098 received) $6,845
Contribution to the American Lung Association $ 500
Contribution to the Habitat for Humanity $1,000
Contribution to Methodist Church of PA $3,000
Contribution to Penn State University $ 500
Alyssa Expense $12,700
Day care Expense (Connor) $1,250.
Moving Expense $8050
Contribute to the Presidential Election Campaign. $3
________
Total $37,203
____________
Income = $169,135
Less: Expenses = $37,203
________
Total $131,932
Can claim up to $2,350 for 100 miles.
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