Your client, Gwendolyn R. Nichols, SSN: 113-33-3333, DOB: 05-01-1941, attends her annual appointment with you to...
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Your client, Gwendolyn R. Nichols, SSN: 113-33-3333, DOB:05-01-1941, attends her annual appointment with you to discuss thefiling of her 2018 Federal Income Tax return. Gwendolyn is a widow,her husband, Harold T. Nichols, SSN: 144-44-4444, DOB: 05-13-1939,died on December 11, 2017 of natural causes. She tells you that shepaid $11,000 in funeral expenses in January of 2018. Gwendolyncares for two of her great-grandchildren, Jordan A. Lancaster, SSN:115-55-5555, DOB: 12-15-2009 and Rose G. Lancaster, SSN:116-66-6666, DOB: 08-03-2013. Her great-grandchildren live with herfull-time. Gwendolyn’s grand-daughter, Therese Lancaster, SSN:117-77-7777, DOB 03-15-1990, the mother of Gwendolyn’sgreat-grandchildren, lived with Gwendolyn from May of 2017 throughJanuary of 2019. She had a few off and on jobs, Gwendolyn isn’tsure how much she made from work, but says that it wasn’t very muchbecause she wasn’t employed most of the time she lived with her.Gwendolyn tells you that she decreased her hours as a clerk at thelibrary this year and that now she only works about 10 hours eachweek. She has a W-2 from the library reporting $12,500 in wages.She receives social security benefits of $1,000 per month and shestill receives about $10,000 each year in tax-exempt interest. Shealso receives $750.00 per month from her late husband’s pension.She has provided you with all of the supporting tax documents forthese items of income. She owns the residence at 123 West KansasStreet, Pittsburg, Kansas 66762 and has a small mortgage on theproperty which she took out several years ago to pay for a newroof. She paid real estate property tax on her home of $750. Shealso owns a 2010 Buick LeSabre and she provides you with a copy ofthe property tax statement. Gwendolyn is on Medicare and most ofher medical expenses are paid. However, she advises you that shepaid a total of $1,000 in medical services for various doctor’sappointments, eye glasses and prescriptions for herself. Jordan andRose have Kansas HealthWave insurance which costs Gwendolyn $100dollars a month. She also had $500 in additional health care costsfor her great-grandchildren. Gwendolyn is an active member of herlocal Christian church and she donated $500 to the church in theform of cash charitable contributions and she made them a quiltwhich she donated for a fund-raising raffle. The quilt cost herabout $200 for materials and she estimates its value at $600.Gwendolyn provides you the following documents related to her 2018tax return: W-2 from the Pittsburg Community Library 1099 SSASocial Security Statement 1099-INT from Security Investments, Inc.1099-R from the Fireman’s Pension fund 2018 Real Estate PropertyTax Receipt 2018 Personal Property Tax Receipt Charitablecontributions statements 1099-G regarding State of Kansas TaxRefund for 2017 1098 Mortgage Interest Statement Tax Bill forpreparation of 2017 taxes, paid Gwendolyn requests that youcomplete her 2018 federal income tax return. For purposes of thisassignment you may assume that all persons are covered by insurancefor the entire year. You do not need to complete a state income taxreturn. You also do not need to concern yourself with any child taxcredits. Please complete all attached forms and show how youcalculated tax. In addition to completing his tax return, pleasealso answer the following questions:
3. Should she file with a standard or itemized deductions,why?
Your client, Gwendolyn R. Nichols, SSN: 113-33-3333, DOB:05-01-1941, attends her annual appointment with you to discuss thefiling of her 2018 Federal Income Tax return. Gwendolyn is a widow,her husband, Harold T. Nichols, SSN: 144-44-4444, DOB: 05-13-1939,died on December 11, 2017 of natural causes. She tells you that shepaid $11,000 in funeral expenses in January of 2018. Gwendolyncares for two of her great-grandchildren, Jordan A. Lancaster, SSN:115-55-5555, DOB: 12-15-2009 and Rose G. Lancaster, SSN:116-66-6666, DOB: 08-03-2013. Her great-grandchildren live with herfull-time. Gwendolyn’s grand-daughter, Therese Lancaster, SSN:117-77-7777, DOB 03-15-1990, the mother of Gwendolyn’sgreat-grandchildren, lived with Gwendolyn from May of 2017 throughJanuary of 2019. She had a few off and on jobs, Gwendolyn isn’tsure how much she made from work, but says that it wasn’t very muchbecause she wasn’t employed most of the time she lived with her.Gwendolyn tells you that she decreased her hours as a clerk at thelibrary this year and that now she only works about 10 hours eachweek. She has a W-2 from the library reporting $12,500 in wages.She receives social security benefits of $1,000 per month and shestill receives about $10,000 each year in tax-exempt interest. Shealso receives $750.00 per month from her late husband’s pension.She has provided you with all of the supporting tax documents forthese items of income. She owns the residence at 123 West KansasStreet, Pittsburg, Kansas 66762 and has a small mortgage on theproperty which she took out several years ago to pay for a newroof. She paid real estate property tax on her home of $750. Shealso owns a 2010 Buick LeSabre and she provides you with a copy ofthe property tax statement. Gwendolyn is on Medicare and most ofher medical expenses are paid. However, she advises you that shepaid a total of $1,000 in medical services for various doctor’sappointments, eye glasses and prescriptions for herself. Jordan andRose have Kansas HealthWave insurance which costs Gwendolyn $100dollars a month. She also had $500 in additional health care costsfor her great-grandchildren. Gwendolyn is an active member of herlocal Christian church and she donated $500 to the church in theform of cash charitable contributions and she made them a quiltwhich she donated for a fund-raising raffle. The quilt cost herabout $200 for materials and she estimates its value at $600.Gwendolyn provides you the following documents related to her 2018tax return: W-2 from the Pittsburg Community Library 1099 SSASocial Security Statement 1099-INT from Security Investments, Inc.1099-R from the Fireman’s Pension fund 2018 Real Estate PropertyTax Receipt 2018 Personal Property Tax Receipt Charitablecontributions statements 1099-G regarding State of Kansas TaxRefund for 2017 1098 Mortgage Interest Statement Tax Bill forpreparation of 2017 taxes, paid Gwendolyn requests that youcomplete her 2018 federal income tax return. For purposes of thisassignment you may assume that all persons are covered by insurancefor the entire year. You do not need to complete a state income taxreturn. You also do not need to concern yourself with any child taxcredits. Please complete all attached forms and show how youcalculated tax. In addition to completing his tax return, pleasealso answer the following questions:
3. Should she file with a standard or itemized deductions,why?
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