William and Wilma B. Foxworthy were married in 1994 and will file a joint return for 2015. Their oldest son, William (Bill), attended UCSD on a full...
William and Wilma B. Foxworthy were married in 1994 and will file a joint return for 2015. Their oldest son, William (Bill), attended UCSD on a full football scholarship valued at $18,500. The Foxworthy’s contributed Bill’s only other support in the form of spending money in the amount of
$5,000. Their other child, Melissa, is an 18-year-old high school student who lives at home and worked part-time. Nearly all of Melissa’s earnings of $4,500 were placed into savings for college. William
was employed full-time and Wilma was employed part time during 2015. Their earnings are as follows:
William Foxworthy, Car Mechanic $ 44,000
Wilma B. Foxworthy, RN Sharp Hospital 55,000
Federal taxes of $4,400 and $6,750 respectively were withheld from their wages.
Wilma’s Mom passed away and in 2010 she received a sizable inheritance. The inheritance is all invested in stocks, bonds and Treasury bills. The 2015 income is summarized as follows:
Interest income:
| U.S. Treasury Bills | $ 5,800 |
| Charles Schwab – Interest (taxable) | 1,200 |
| Charles Schwab – Interest (muni’s) | 3,000 |
| Dividends: | |
| AT&T | 4,500 |
| Ford Motor Corporation | 2,500 |
| Royal Dutch Shell (A publicly traded foreign corporation) | 2,700 |
| Foreign taxes withheld | 260 |
William and Wilma will itemize their deductions for 2015. Their records reveal the following:
| Medicines and drugs | 1,400 |
| Other medical – hospital/doctor’s | 12,400 |
| Medical expense reimbursement (Wilma’s §125 plan) | 3,500 |
| State and local sales taxes | 1,350 |
| State and local income taxes | 4.500 |
| Real estate (property) taxes | 6,500 |
| Interest on home mortgage | 13,500 |
| Other interest—Credit cards | 1,350 |
| Charitable contributions (cash) | 2,100 |
| Tax return preparation fees for prior year | 950 |
| Political contributions to a national candidate for office | 250 |
Forms required to complete and submit for William and Wilma B. Foxworthy based on the above information:
1. 1040
2. 1040, Schedule A
3. 1040, Schedule B
4. Form 8879 (e-file Signature Authorization)
All of the dividends received are qualified dividends
Provide SS’#’s and address for taxpayers
