Reference no: EM131693764
Question - Taxpayer, Mary Kelly, is 35 years old. Her social security number is 123-66-4478. She lives at 12 Main St in Medfield, MA.
Mary is divorced. She pays her ex $15,000 a year in alimony. Her ex's name is Pat Downs. Pat's social is 111-22-3345. Mary also pays $20,000 a year in child support. Her divorce decree allows her to claim her daughter, Beth, born 8/2/2010, SS 221-31-5544 as a dependent.
Mary is an inventor. Companies pay her royalties to use her inventions. She received $106,000 in royalties last year. She had no associated expenses.
Mary works as a professor at Northeastern. Her W2 income was $75,000. Her federal withholding was $18,000. Her State withholding was $6,000.
Mary paid $23,000 in mortgage interest, $5,900 in property taxes, $1,300 in PMI, and $1,100 in homeowners insurance.
Mary paid $12,000 in daycare for her daughter.
Mary sold 10,000 shares of apple stock at $156/share.. She inherited it from her uncle John who had an unfortunate skydiving accident on March 13, 2012.
Mary donated $3,000 to charity. She also paid $30,000 for solar panels which are at her primary residence last year.
Mary's house is in a desirable area for new years' celebrations. She rented her house from December 26 2015 until Jan 2 2016 for $7,500. Unfortunately her septic system was destroyed. it costed her $19,000 to make repairs and bring it up to title 5 requirements.
Prepare a 2016 income tax return for Mary.