Tax return
Income Tax Return Assignment
You have your own CPA tax practice and you are greeted with new clients: Albert and Jenny Cunningham and their two children. You meet with them and they give you the information shown below. They would like you to prepare their tax return for 2013. They would like to file married filing jointly.
NOTE: Reference to the “current tax year” below for the taxpayers, Albert and Jenny, it is for the calendar year 2013.
Albert and Jenny Cunningham (both 42 years old) are married and have 2 children. Their son, Michael is 8 and their daughter, Ashley, is 3. They live at 151 32nd Avenue Texas, TX 12345.
The following table summarizes the birthdates, etc. for the family members:
Social Security Number
Date of Birth
Albert
523-33-3456
May 12
Jenny
454-66-1654
March 15
Michael
523-45-7890
September 16
Ashley
523-50-6423
November 3
Jenny sells cosmetics for Maxim Company. Albert is Vice Principal at the local high school and he works independently as a repair/handyman. Their income from their full time jobs is as follows:
Salary
Federal Tax Withheld
State Tax Withheld
Jenny
$85,000
$10,500
$5,400
Albert
$45,000
$6,100
$3,150
NOTE: the above income is before considering the following items:
1. Maxim has a cafeteria benefits plan that lets employees select benefits equal to as much as 10% of their annual salary or receive the cash equivalent. Jenny selects the max of 10% of her salary and chooses dental insurance, $40,000 in group term life insurance, disability insurance, and company-provided day care. The total cost to Maxim of those benefits is $6,600. Jenny takes the remaining benefits of $1,900 to which she is entitled in cash.
2. Because Maxim does not have an employee pension plan, Albert and Jenny each contribute $5,500 to their individual retirement accounts.
3. The school district gives Albert medical insurance and group term life insurance equal to 100% of his annual salary.
You have your own CPA tax practice and you are greeted with new clients: Albert and Jenny Cunningham and their two children. You meet with them and they give you the information shown below. They would like you to prepare their tax return for 2013. They would like to file married filing jointly.
NOTE: Reference to the “current tax year” below for the taxpayers, Albert and Jenny, it is for the calendar year 2013.
Albert and Jenny Cunningham (both 42 years old) are married and have 2 children. Their son, Michael is 8 and their daughter, Ashley, is 3. They live at 151 32nd Avenue Texas, TX 12345.
The following table summarizes the birthdates, etc. for the family members:
Social Security Number
Date of Birth
Albert
523-33-3456
May 12
Jenny
454-66-1654
March 15
Michael
523-45-7890
September 16
Ashley
523-50-6423
November 3
Jenny sells cosmetics for Maxim Company. Albert is Vice Principal at the local high school and he works independently as a repair/handyman. Their income from their full time jobs is as follows:
Salary
Federal Tax Withheld
State Tax Withheld
Jenny
$85,000
$10,500
$5,400
Albert
$45,000
$6,100
$3,150
NOTE: the above income is before considering the following items:
1. Maxim has a cafeteria benefits plan that lets employees select benefits equal to as much as 10% of their annual salary or receive the cash equivalent. Jenny selects the max of 10% of her salary and chooses dental insurance, $40,000 in group term life insurance, disability insurance, and company-provided day care. The total cost to Maxim of those benefits is $6,600. Jenny takes the remaining benefits of $1,900 to which she is entitled in cash.
2. Because Maxim does not have an employee pension plan, Albert and Jenny each contribute $5,500 to their individual retirement accounts.
3. The school district gives Albert medical insurance and group term life insurance equal to 100% of his annual salary.