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ACC$404$ Tax Return Project #$1$ Spring $2024$

James E$.$ Files and Ellen B$.$ Files were married on June $10,2020.$ They live at $1234$ Main

Street, Atlanta, Georgia, $30033.$ James$$ birthday is $9/1/1968$ and his Social Security number is

$532-16-6451.$ Ellen$$s birthday is $6/8/1970$ and her Social Security number is $236-21-9876.$

James Files is employed as a computer programmer for Computer Services, Inc., and Ellen is an

accountant for her mother$$s company, Accounting Services, Inc.

James and Ellen would like to file a joint return for $2023.$ They both want to contribute to the

presidential election campaign. James and Ellen do not have any foreign bank accounts or trusts.

They provide the following information:

$$ James received a Form W$-2$ from Computer Services, Inc. that contained the following

information:

$$ Line $1$ Wages, tips, other compensation $$49,000$

$$ Line $2$ Federal income tax withheld $7,600$

$$ Line $3$ Social Security wages $49,000$

$$ Line $4$ Social Security tax withheld $3,038$

$$ Line $5$ Medicare wages and tips $49,000$

$$ Line $6$ Medicare tax withheld $711$

$$ Line $17$ State income tax $2,200$

$$ Ellen received a Form W$-2$ from Accounting Services, Inc., that contained the following

information:

$$ Line $1$ Wages, tips, other compensation $$87,000$

$$ Line $2$ Federal income tax withheld $12,900$

$$ Line $3$ Social Security wages $87,000$

$$ Line $4$ Social Security tax withheld $5,394$

$$ Line $5$ Medicare wages and tips $87,000$

$$ Line $6$ Medicare tax withheld $1,262$

$$ Line $17$ State income tax $4,200$

$$ James was previously married to Rhonda Files. James and Rhonda were divorced on

$4/10/2017.$ James must pay $$1,000$ alimony per month to Rhonda for the next $5$ years or

until Rhonda$$s death, whichever occurs first. In $2023,$ James paid $$12,000$ alimony to

Rhonda. Rhonda$$s social security number is $312-56-4859.$

$$ James and Ellen earned interest from the following:

$$ Savings account interest from Liberty Savings Bank $$300$

$$ Certificate of Deposit $($CD$)$ interest from Centier Bank $2,900$

$$ Interest from City of Leesburg municipal bonds $800$

$$ James and Ellen incurred the following medical expenses for the year:

$$ Transportation for James$$ cancer treatment in $20232,100$ miles

$$ Unreimbursed hospital charges for James $$7,000$

$$ Unreimbursed prescription drug charges for James and Ellen $1,800$

$$ Unreimbursed physician charges for James and Ellen $2,300$

$$ Unreimbursed prescription glasses for Ellen $200$

$$ Laser hair removal treatment for Ellen $($so that she will no longer

need to shave her legs$)2,500$

$$ James and Ellen paid $$12,800$ of interest payments on their primary residence

$($acquisition debt of $$225,000).$ They also paid $$1,500$ of interest expense on Ellen$$s car

loan and $$600$ of interest on their Visa card.

$$ James and Ellen paid $$4,100$ of real estate taxes on their home and $$1,200$ of real estate

tax on a vacant lot they purchased with the hope of building their dream home in the

future. They also paid $$3,000$ in sales tax on Ellen$$s car and other purchases and $$800$ of

ad valorem personal property tax on their cars.

$$ James and Ellen made the following contributions this year:

$$ American Red Cross $ $400$

$$ United Way $200$

$$ St$.$ Joseph$$s Catholic Church $7,600$

$$ Food for the family of Alice Martin $($a neighbor who suffered a

tragic car accident this past year$)225$

$$ Stock transfer to the University of Florida $($originally purchased for

$$1,000$ in January $2007)$ on July $1,20231,500$

$$ James won $$4,100$ in the state lottery. He has been playing the lottery for years, spending

$$10$ in lottery tickets every week $($$$520$ in total$)$ and is careful that he saves the old tickets

to keep track of the numbers he plays.

$$ James and Ellen did not buy, sell, exchange, or otherwise acquire any financial interest in

a virtual currency.

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