Aaron Su (age 39, SS #890-23-4512) is divorced. He lives with his girlfriend, Kim. He...

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Aaron Su (age 39, SS #890-23-4512) is divorced. He lives with his girlfriend, Kim. He provides more than half her support. Kim earns $23,000 a year as a waitress. He has three children, Susan (Age 15, SS # 213-34-8966) and Jane (Age 11) (SS # 435-45-6712) and Jamie age 17 (SS # 563-22-7864). Aaron has custody of his three children who live with him and whom he supports. They reside at 2315 Castro Street, Oakland, Ca. 94234. Aaron is an employed as medical assistant at UCSF of California. What is the amount of his tax due or tax refund? Aaron also provides more than half of the support for his mother Katherine, Age 71, (SS #341-67-8790) who lives in her own apartment. Katherine is single. Her only income is Social Security income of $12,213. Aaron has the following income and deductions for 2018

Salaries

Aaron

115,831

Qualified Home mortgage interest expense paid to B of A (Received 1098).

12,323

Property taxes on home

10,500

Payment of medical expenses for Susan who has cerebral palsy

12,723

Interest income from SF City Bonds

3,200

Interest income from Kaiser, Inc. Bonds

2,900

Larris Corp Ordinary Dividends

2,323

Qualified Dividends

1,423

FICA tax paid (6.2% Social Security and 1.45% Medicare tax

Social Security 7,182

Medicare Tax 1,680

California state income tax withheld in 2018

Aaron

3,224

Alimony paid to former spouse Lindsay Hoo (Divorce was in 2014)

12,315

Charitable contribution by check to SF Police Department

2,312

Federal tax withholding

3,832

Federal Estimated Tax paid for 2018 tax year

1,823

Child tax credit and Other Dependent Credit?

?

Life Insurance Proceeds from death of grandmother

30,000

Money found on street by Aaron

1430

Sold 323 shares H. Corp stock on 2/16/2018 for $14,500 they purchased on 1/3/2005 for $20,000

?

Aaron went on a business trip and spent $2,800 for which he was not reimbursed

3000

Tax return preparation fee

800

Aaron paid David Chen a fee to manage his investments

600

  1. Compute Aarons Tax Due or Refund

Taxable Income

Tax on Income

Computation of Tax on Ordinary and LTCG

Ordinary Income

LTCG

Qualified Dividend

Total

Less Child Tax Credit

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