58. Daniel B. Butler and Freida C. Butler, helpmate and helpmate, finish a knee produce. The Butlers feed at 625 Oak Street in Corbin, KY 40701. Dan’s SSN is 111-11-1112, and Fredia’s is 123-45-6789. Dan was born on 1/15/67.
During 2018 Dan and Freida replete balance half of the whole maintenance of each of the forthcoming living-souls, all of wresidence quiescent feed at residence:
Gina, their daughter 22 a unmeasured era learner who married on 12/21/18 has no proceeds of her own and for 2018 did not finish a knee produce behind a while her helpmate Casey, who deserveed $10,600.00 during 2018. Gina’s SSN is 123-45-6788
Sam their son is 20 who had a unseemly proceeds of 6300 in 2018 dropped out of academy in October 2018. HE had graduated excellent train in May 2018. Sam’s SSN is 123-45-6787.
Ben their oldest son age 26 is a unmeasured era graduate learner behind a while unseemly proceeds of 5200. Ben’s SSN is 123-45-6786
Dan was filled as a overseer by WJJJ, inc. EIN # 11-11111111, 604 Franklin Street Corbin KY 40702, and Freida was filled as a salesperson for Corbin Realty KY 40701. Selected instruction from the W-2 forms supposing by the employers is presented underneath. Dan and Freida use the currency rule.
Line Description Dan Freida
1 Wages,tips, other compensation 74,000 86,000
2 Federal proceeds tax behind a whileheld 11,000 12,400
17 State proceeds tax behind a whileheld 2,960 3,440
Freida sold a lineage on 12/30/18 and deserve be compensated a message of $3100(not middle in the 86k reputed on W-2) on the January 10, 2019 noncommunication era.
Other proceeds (as reputed on 1099 forms) for 2018 consisted of the forthcoming:
Dividends on CSX accumulation (qualified) 700.00
Interest on savings at Second bank 1600.00
Interest on City of Corbin bonds 900.00
Interest on First Bank CD 382. 00
The $382 from First Bank was primordial offspring remittance. Dan and Freida self-possessed 16k on the First Bank CD that perfect on 09/30/18. The CD was purchased on 10/1/16 for $14,995.00 and the agree to ripeness was 3.3%
Dan accepted a Schedule K-1 from Falcon Partnership which showed his arrangement divide of proceeds as $7,000.00. In individualization to the aloft instruction, Dan and Freida’s itemized waste middle the forthcoming:
Compensated on 2018 Kentucky proceeds tax 700.00
Personal ownership tax compensated 600.00
Actual rank taxes compensated 1,800.00
Interest on residence mortage (Corbin S&L) 4,900.00
Currency contributions to the Boy Scouts 800.00
Sales tax from the sales tax ttelling is $1,860. Dan and Freida made estimated tax payments of $8000.00. The Kentucky proceeds tax scold is 4%.
Part 1- Tax Computation
Compute Dan and Freida’s 2018 icome tax paytelling (or repay due) If you use tax forms for the computations you deserve scarcity Form 1040 and Schedules A, B and E
Part 2 Tax Planning
Dan plans to attenuate his product schedule andonly product half era for WJJJ in 2019. He has been communication anthems for various years and wants to direct his era to developing a history as a anthemwriter. Because of the irregularity in the voice vocation, still, he would love you to gain all computations inflated that he deserve accept no proceeds from anthem communication in 2019. To gain up for the missing of proceeds Freida plans to growth the quantity of era she spends selling actual rank. She estimates that she deserve be telling to deserve $90k in 2019. Assume that all other proceeds and payment items deserve be closely the identical as they were for 2019. Assume that Sam deserve be in enrolled in academy as a unmeasured era learner for the summer and decline semesters. Deserve the Butlers accept further or close dispostelling proceeds (behind Federal proceeds tax) in 2019? Write a message to the Butlers that contains your information and fit a memo for the tax finishs.