Reference no: EM131786780
LEO Doe is divorced and has the following tax information for 2015.
LEO's address is 123 Main Street, Annapolis, MD. 12345
LEO's social security number is 123-45-6789.
LEO's 9 year old son (GEO) lives with him year-round and LEO has sole custody. GEO's social security number is 987-65-4321. LEO claims the exemption for his son.
LEO's occupation is a photographer.
Wages
LEO's 2015 wage was $50,000.
Federal taxes withheld was $6,000
State taxes withheld was $3,000
Other income
Interest earned on bank account = $50
LEO was laid-off in the second half of the year. After being laid off, LEO received Unemployment Compensation of $4,000 for three months. (No taxes were withheld).
After unemployment compensation ended, LEO performed several freelance photography jobs out of his home. He earned $2,000. He only tracked two expenses. He drove his car 400 miles related to the photography jobs. Supplies were $300. (You may ignore self-employment taxes).
IRA and other expenses
Contributed to a Roth IRA = $4,000
Mortgage interest = $7,900
Property tax on home = $2,200
Church donations = $2,100
Clothing and housewares donated to Goodwill = $100
LEO and GEO medical expenses = $1,100
LEO gave his mother $1,000 to help her with medical expenses
Pet food and veterinary expenses = $400
Tax preparation fee = $300
GEO's before/after school child care expenses = Zero. His grandparents take care of him during this time.
In 2015, LEO's motorcycle was stolen. LEO paid $2,000 for the motorcycle on 1/1/2010. It has a fair market value of $800 when stolen. The motorcycle was not insured. It was used personally - not for business.
Complete Form 1040 (pages 1 and 2), Schedule A, Schedule C, and Form 4684.