Based on the facts below, prepare for Shelli Thomson her US (federal) individual income tax...
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Accounting
Based on the facts below, prepare for Shelli Thomson her US (federal) individual income tax return (Form 1040), her Schedule A (Itemized Deductions), Schedule 3 (Additional Credits and Payments).
FACTS1. Shelli Thomson graduated from CSULA and works as a chemist for Sargent Chemical Corp. 2. Shelli Thomsonsa. Birthday is January 1, 1970;b. Social Security number is 111-11-1113; c. Address is 7605 Walnut Street, Los Angeles, CA 90013; 2d. Tax return filing status is single;e. Her ordinary income tax rate is 10%.3. For line 11 of the Form 1040, multiply the total amount of income you entered on line 10 of the Form 1040 by 10% (Shellis income tax rate) and enter that amount on line 11. 4. For the taxable year, Shelli:a. Earned $50,000 in wages as a chemistb. Her employer, Sargent Chemical Corp, did not withhold federal and state income taxes;c. Received $200 of interest on her savings bank account;d. Paid $7,000 in out-of-pocket medical expenses including co-pays for prescription drugs and doctor appointments;e. Paid property (real estate) taxes of $5,000 to the city of Los Angeles;f. Paid $10,000 in home mortgage interest on her home mortgage. Her mortgage was $100,000 and was secured by her home;g. Incurred a $2,000 theft loss; h. Incurred a $3,000 casualty loss after her home was damaged by a tornado in a federally declared disaster area;i. Donated $200 in cash to a tax-exempt charity; andj. Can claim a $500 American Opportunity Credit.
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