Reference no: EM132704349
Problem - Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2017. She lives at 654 Ocean Way, Gulfport, FL 33707. Bea's Social Security number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2018 for her job as a manager at a Florida shrimp-processing plant are:
Earnings from the Gulf Shrimp Co. $43,200
Federal income tax withheld $43,200
State income tax withheld 0
Bea's other income includes interest on a savings account at Beach National Bank of $2,200 and $600 per month alimony from her ex-husband in accordance with their 2010 divorce decree.
Bea's employer operates a 401(k) plan, and although she is eligible, Bea does not participate.
During 2018, Bea paid the following amounts (all of which can be substantiated):
Home mortgage interest $8,700
Auto loan interest 2,300
State sales tax 820
Property taxes on personal residence 3,233
Unreimbursed hospital bills 3,250
Doctor bills 2,612
Other deductible medical expenses 720
Income tax preparation fee 600
Job-hunting expenses 925
Contribution to IRA 2,500
In September 2018, Tropical Storm Yuri struck Gulfport and a tree fell on Bea's home. Bea acquired the home in February 2011 for $110,000. The estimated loss in market value from damage was equal to her repair charge of $7,800. The damage caused by TS Yuri was declared a federal disaster (code EM-1212). Bea's deductible was quite high and her insurance company only reimbursed her $1,200.
Required - Complete Bea's federal tax return for 2018. Use Form 1040, Schedule A, Schedule B, and Form 4684 (if needed) to complete this tax return. Make realistic assumptions about any missing data.