60.1K

Verified Solution

Link Copied!

Jason Ready attended the University of Ohio from $2019$ to $2023$ under the Air Force ROTC program. Excluding the school expenses covered by his ROTC scholarship, he incurred additional school expenses of $$15,000$ in total for his education, and $$2,250$ of that amount was incurred in $2023$ for his last semester. To finance these expenses, he borrowed $$10,500$ through a federal student loan program and borrowed another $$4,500$ from Buckeye State Credit Union for educational purposes. After graduation, he received his officer's commission and was ordered to report to the Joint Base San Antonio$-$Lackland, in Texas for duty. He lives off base at $9947$ Birch Field Dr$,$ San Antonio, TX $78245.$ His Social Security number is $412-34-5670($date of birth $7/10/2001).$

His W$-2$ contained the following information:

Wages $(box1)=$$$67,533\mathrm{.}05$

Federal$\frac{W}{H}(box2)=$$$8,095\mathrm{.}37$

Social Security wages $(box3)=$$$67,533\mathrm{.}05$

Social Security$\frac{W}{H}(box4)=$$$4,187\mathrm{.}05$

Medicare wages $(box5)=$$$67,533\mathrm{.}05$

Medicare$\frac{W}{H}(box6)=$$$,979\mathrm{.}23$

In moving to San Antonio, he incurred the following unreimbursed moving expenses:

$$385$ in gasoline.

$$275$ for renting a truck from IGOTYA rentals.

$$135$ in food.

$$485$ for motel lodging on the way to San Antonio.

He also received two Forms $1098-$E$.$ One was from the federal student loan program, which showed $$550$ of student loan interest; the other was from Buckeye State Credit Union and showed $$160\mathrm{.}40$ of student loan interest.

Prepare a Form $1040,$ Schedule $1,$ and a Form $3903.$ If manually preparing the return, the Student Loan Interest Deduction

Page $4-31$

worksheet can be found in IRS Publication $970,$ Tax Benefits for Education.

Answer & Explanation Solved by verified expert

See Answer