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
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
Answer & Explanation
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