Tax Project FOR THE PALIN FAMILY FOR 2009: prepare a 2009 Form 1040 Individual Tax Return for the couple?
Bobo and Mimi Palin, a married couple, reported the following information for 2009.
Bobo Palinhusbandage 50s.s. # 222-33-1111
Mimi Palinwifeage 54s.s. # 888-55-7777
Kiwi Palindaughterage 16s.s. # 444-11-8888
Banana Palinsonage 13s.s. # 111-99-1111
Tangerine Palindaughterage 17s.s.# 333-44-5555
The couple reside at 444 Fruit Lane, Carbondale, Illinois 62901. The couple have three qualified dependants, Kiwi, Banana and Tangerine. During 2009, all 3 children lived with their parent, had no income and were full time students. Bobo was not employed full time during 2009 (he desires to be supported by his wife). During 2009, Bobo worked part-time at the local golf course. He earned $ 7,000 in wages and $ 5,000 in tips during 2009. Bobo had a total of $ 800 in federal taxes withheld from his paycheck at the golf course. Bobo also received $ 6,000 in unemployment compensation during the winter months. Bobo earned $ 200 in taxable interest income from a checking account he has held for 5 years at First Southern Bank. Bobo’s aunt, Cantelope Church, gave him $ 20,000 cash for his birthday. During a boys weekend at the local casino, Bobo won $ 7,000 cash playing blackjack. Both Bobo and Mimi funded their I.R.A. $ 3,000 each.
Mimi was employed full time during 2009 as a secret shopper employed by University Mall. She earned $ 40,000 in wages from her job and also received a $ 20,000 bonus at the end of 2009 for her exceptional work in arresting shoplifters. She received a W-2 Form from her employer which included her wages and bonus. Federal taxes withheld from her employer and reported on the W-2 form was $ 10,000. Mimi’s grandmother died during 2009 and she received $ 30,000 in life insurance proceeds from a policy held by her grandmother and payable to Mimi as the primary beneficiary. Mimi also had $ 500 in qualified student loan interest paid in 2009. The couple reported the following itemized deductions for the year: qualified mortgage interest $ 3,567, and residential property taxes $ 3,200.
Mimi had taxable interest income of $ 500 from a savings account she has held for 10 years at the Bank of Carbondale. Bobo served as a juror in 2009 at the Jackson County Courthouse and received a check for $ 200 for his services as a juror. Prior to her marriage to Bobo, Mimi was married to a man named Fabio Flang, s.s. # 123-45-6789. Per court order, in 2009 Mimi paid Fabio alimony payments totaling $ 6,000. Finally, none of the children received any gifts over $ 100 during the year (the parents are not fun and do not recognize birthdays, Christmas, Easter, Valentines Day or Anniversaries).
I must compute for the tax liability.
And also am running into trouble making the 1040 form.