Reference no: EM131998200

Kenneth and Carolyn Bowie have been married for 4 years. They live at 5540 North Perishing Rd, Arlington, VA 22206. Carolyn is a full-time student at Northern Virginia Community College and Kenneth works at a local State Farm Insurance Agency location in Fairfax County an insurance agent. Kenneth’s social security number is 465-74-3321 and Carolyn’s is 465-57-9934. Kenneth’s earnings and income tax withholdings for 2017 are:

Earnings from Safeway $57,150

Federal income tax withheld 5,800

State income tax withheld 3,600

The Bowie’s have the following interest and dividend income:

Interest - City of Baltimore Bonds $750

Interest – BB&T 420

Qualified Dividends – Dow Chemical Corp 840

Carolyn is an excellent student at NOVA and was given a $4,000 scholarship by the college to help pay educational expenses. The scholarship funds were used by Carolyn for tuition and books. She also had a part-time job at NOVA and was paid $5,000 on a W-2 for helping out in the Registrar’s office. There was no income tax withheld on the amount paid to Carolyn from this job.

Last year, Kenneth was laid off temporarily from a former job and was unemployed for five weeks starting in January 2017. He was paid $2,150 of unemployment compensation until he started work with his current, employer, State Farm.

Kenneth has a 8 year old son, Kirk, from a prior marriage. During 2017, he paid his ex-wife $500 per month in child support. Kirk is claimed as a dependent by Kenneth’s ex-wife.

Kenneth and Carolyn have health care insurance through Kenneth’s employer and had coverage with his current employer for eleven months for the entire year and had continuing coverage under his old plan while unemployed.

Required: Complete the Bowie’s 2017 tax return using the appropriate 1040 Form and any required schedules and worksheets, e.g., the qualified dividends and capital gain worksheet.