Please complete the federal income tax return for Daniel and Donna Coleman. Daniel and Donna Coleman live in Plymouth, Maine. Daniel is years old and the VicePresident of Sales at a small startup company. Donna is years old and a former advertising executive who currently consults with former clients. The Colemans have two children Rachel age and Adam age Rachel does not work as she is a fulltime college student at Maine University MU and received a $ scholarship in for MU tuition. Rachel was not required to perform any services as a condition of accepting the scholarship. Adam is a high school student and works during the summer for a company that runs camp sites he earned $ in The Colemans plan to file a joint tax return and provided the following information:Daniels social security number is AAABBCCCCDonnas social security number is BBBCCDDDDRachels social security number is CCCDDEEEEAdams social security number is DDDEEFFFFMailing address is Ocean Drive, Plymouth, Maine Daniel Coleman reported the following information relating to his employment during the year:Employer: Alternative CreationsGross Wages: $Federal Income Tax Withholding: $State Income Tax Withholding: $Daniels employer withheld all payroll taxes it was required to withhold. The entire Coleman family was covered by minimum essential health insurance during each month in The insurance was provided by Daniels employer.Donna Coleman uses the cash method of accounting for her business activities which were as follows: Consulting revenue reported to her on a Form NEC Highend Retail $ Jensens Health Products $ Strategic Solutions $ During the year, Donna paid the following business expenses:Office expenses $Professional license fees $Airfare $Hotel $Meals $ Parking $Contract labor $Donna has an office area square feet in the home and uses the simplified method to determine her home office deduction. The total square footage of the Colemans home is Donna drove business miles for her consultingrelated activities. Donna drove a Volvo purchased on January for all her business mileage. She drove the vehicle a total of miles during the year for all purposes. Donna has written documentation to support the mileage amounts. She also has access to another vehicle for personal purposes.Donna made the following estimated tax payments in : $ for Federal income taxes and $ for state income taxes. The Colemans also received the following investment income during the year:Interest income from First Bank of Maine $Interest income from a Municipal Bond $Interest income from US Treasury Bond $Qualified dividends income from Microsoft $Dividend income not qualified from Grant Fund $The Colemans did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year.The Colemans had the following activity in their brokerage account during the year. All transactions were reported on a Form B and basis information on each stock sale was reported to the IRS. Sold shares of Google, Inc. $Sold shares of Apple, Inc. $Sold shares of Union Classic $Relevant tax basisholding period information related to sales of securities in the current year:Purchased shares of Google, Inc. on for $Purchased shares of Apple, Inc. on for $Purchased shares of Union Classic on for $The Colemans received a Maine state income tax refund of $ in May of The Colemans received the refund because they had overpaid their Maine state individual income tax in On their Federal income tax return, the Colemans itemized their deductions and received full tax benefit deduction for the state tax income taxes paid in Donna is a owner in an advertising agency named Bright Ideas, Inc. BIEIN XXYYYZZZZ BI is a Subchapter S corporation. The company reported ordinary business income for the year of $ Donna received a K from BI reporting her allocation of this business income. Donna acquired the stock several years ago. Her basis and atrisk amount in the stock before considering her income allocation was $ Donna is a passive owner with respect to this entity.Donna is also a owner in Natural Sunshine, Inc. NSEIN AABBBCCCC NS is a Subchapter S corporation. The company reported an ordinary business loss for the year of $ Donna received a K from NS reporting her allocation of this business loss. Donna acquired the stock several years ago. Her basis and atrisk amount in the stock before considering her loss allocation was $ Donna is a passive owner with respect to this entity.In May, Daniel was injured in a home accident. The injury prevented Daniel from working for about a month. During this time, Daniel received $ in disability payments attributable to a disability insurance policy. The disability policy premiums were paid by Daniels employer as a nontaxable fringe benefit. The Colemans paid the following expenses during the year:Dentist unreimbursed by insurance: $Doctors unreimbursed by insurance: $Prescriptions unreimbursed by insurance: $Real property taxes on residence: $Vehicle property tax based upon value: $Mortgage interest on principal residence $ acquisition indebtedness: $Margin interest paid on brokerage account loan: $Fee paid to Mouser, Johnson, and Hintze CPAs for tax preparation: $Contribution to United Way: $Contribution to American Cancer Society: $The Colemans also donated clothing, electronics, furniture and other household goods to the Salvation Army of Plymouth, Maine on April The Colemans estimated that their cost of donated items was $ Estimated thrift value of the goods donated was $
