Reference no: EM131928154

Problem

America Los Rios (age 36) is a single taxpayer, living at 4700 Oak Drive, Sacramento, CA 95841. Her Social Security number is 976-23-5132. America's earnings and income tax withholding as the manager of a local supermarket store for 2016 are:

Earnings	$69,000
Federal income tax withheld	14,800
State income tax withheld	2,300

America's other income includes qualifying dividends on American River Corporation stock of $4,400 and interest on a long-term certificate of deposit at Bank of Sacramento of $5,205.

During the year, America paid the following amounts (all of which can be substantiated):

Home mortgage interest	$10,600
Credit card interest	550
Auto loan interest	1,700
Life insurance (universal policy)	750
Property taxes on personal residence	1,150
Co-pays for doctor visits during the year	650
Other medical expenses	790
Income tax preparation fee	250
Charitable contributions (in cash)	575

In her spare time, America trades stocks and bonds. During the year, she sold several stocks and received a Form 1099-B, which showed the following:

Stock	Acquired	Sold	Price	Basis
Red Co.	02/01/06	10/05/16	$5,400	$2,500
Green Co.	06/11/16	08/03/16	4,000	5,000
Blue Co.	12/12/15	09/22/16	6,300	5,000
White Co.	05/12/05	10/15/16	7,000	4,000
Black Co.	09/15/09	11/01/16	5,500	6,800

Required: Complete America's federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, Schedule D, Form 8949, and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return (she is not subject to Alternative Minimum Tax). Make realistic assumptions about any missing data.