59. Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is
ID: 2478904 • Letter: 5
Question
59. Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene’s Social Security number is 123-45-6788, and Jordan’s Social Security number is 123-45-6787. In 2015,Martin and Michele had the following transactions:
a. Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: $7,049 ($113,700 6 : 2%) for Social Security and $1,740 ($120,000 1 : 45%) for Medicare. Martin worked in Mexico from January 1, 2014, until February 15, 2015. His $120,000 salary for 2015 includes $18,000 he earned for January and one-half of February 2015 while working in Mexico.
b. Martin and Michele received $800 in qualified dividends on Green, Inc. stock and$400 interest on Montgomery County (Virginia) school bonds.
c. Martin received $2,300 interest from a Bahamian bank account.
d. Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.
e. Martin and Michele received a $1,200 refund on their 2014 Virginia income taxes. Their itemized deductions in 2014 totaled $14,000.
f. Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786).
g. Martin and Michele kept the receipts for their sales taxes paid of $1,100.h. Martin and Michele’s itemized deductions were as follows:
• State income tax paid and withheld totaled $5,100.
• Real estate taxes on their principal residence were $3,700.
• Mortgage interest on their principal residence was $2,500.
• Cash contributions to the church totaled $2,800.
Part 1—Tax Computation
Compute the Alberts net tax payable (or refund due) for 2015.
Explanation / Answer
59. Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.