Reference no: EM132703941
ACC 305 Income Tax Return
Ahmed and his wife Mariam have three children and file their taxes jointly.
Information about the family and children as follows:
Ahmed Hassan (date of birth October 1, 1975 & social security #356-27-1123)
Mariam Agha (date of birth November 10, 1980 social security #246-31-8196)
Address: 6759 SW Chaucer Drive, Lawton, Oklahoma 73505
Children:
Suzan (date of birth April 20, 1999)
Fahad (date of birth June 27, 2005)
Hala (date of birth May 15, 2008)
Additional Information:
Ahmed works for Charles Schwab corporation, a brokerage firm.
Mariam is a professor at Oklahoma State University.
Ahmed's salary for 2019 was $185,000. Social security deduction was $8,239.8. His employer also deducted Medicare tax. State income tax withheld by Ahmed's employer for 2019 was $10,450. Ahmed is not covered by his employer's retirement plan. He would like to contribute $8,000 to traditional IRA.
Mariam's Salary for 2019 was $145,000. Mariam's employer deducted
State income tax withheld by Mariam's employer for 2019 was $8,200
Mariam is covered by her employer's retirement plan and would like to contribute $6,000 to traditional IRA.
Ahmed's aunt died and left Ahmed $500,000 in life insurance proceeds.
Ahmed and Mariam purchased a 3,000 square-foot, 5-bed rooms, 3-bathrooms house in January 1, 2019 for $850,000, 5% annual interest. They also paid $4,500 for insurance on the house and state property tax of $2,580 for 2019.
Suzan is a full time student at University of Texas-El Paso. She lives on campus but comes home over the breaks. She has a scholarship of $22,000 which covers her tuition, fees, books, and supplies. Her family paid $18,000 for her room and food during 2019.
Mariam received the following interest during 2019:
$2,650 from Exxon Corporation bonds.
$1,430 from Oklahoma City municipal bonds.
Ahmed sold the following stocks during 2019:
500 shares of IBM @ $200 per share (Stocks were purchased in 2016 @ $50 per share).
400 shares of AMAZON @ $2,800 per share (Shares were purchased in 2015 @ $120 per share).
All family members are covered under Ahmed's employer provided health insurance plan.
Ahmed's and Mariam provided the following list of additional expenses they paid during 2019:
Alimony paid by Ahmed to his ex-wife of $18,000 (Divorce was finalized on June 2017).
Charitable Contributions to Local non-profit hospital- Cash $10,500
Charitable Contributions to Cancer Research Center- cash $8,400.
Uncovered medical expenses $55,750.
Credit Card Interest $2,580
Uncovered Dental Expenses $6,500
Gym membership $2,400
Federal income tax withheld from Ahmed's salary $15,700.
Federal income tax withheld from Ahmed's salary $15,700.
Moving expenses from Texas to Oklahoma $4,980
They have written documentation and/or receipts for the above items.
Specific Requirements:
1. Prepare the family's year 2019 individual income tax return (Form 1040). Include any required alphabetical schedules (Schedule A, B, etc) and numerical schedules (Schedule 1, 2, 3, etc). Even if itemized deductions are less than the standard deduction, attach a detailed Schedule A to show your work. The other schedules should be included only if they are needed.
2. Group tax return - turn in one tax return per group of two. List names of group members as preparers.
3. Use the "fill in" option for printed forms - no handwritten tax returns accepted.
4. If you put more than one income or expense item on any given tax return line, attach a schedule showing the detail of amounts included. Reference the form number and line number. For example (how to reference) "Form 1040, line 21 - Other Income." Use Microsoft Words to prepare these extra sheets.
5. If information is not specifically provided, assume the answer is n/a. Round all amounts to whole dollars. Do not put "00" in cents column, leave blank.
6. You are not allowed to discuss tax return with anyone except your team member and me.
7. You are not allowed to use tax preparation software - not even as a reference.