John is a new client. He has been a widower for five years. John\'s SSN is valid

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John is a new client. He has been a widower for five years. John's SSN is valid for work in the U.S. and was received before the original filing due date of the return (including extensions). He is a U.S. citizen. No one may claim him as a dependent. He is not a student. He wishes to designate $3 to the Presidential Election Campaign Fund. He is not blind or disabled. John lived the entire year in Ohio. He has no authority over a foreign account in execs~ of$10,000 and did not receive a distribution from, nor was he the grantor of or transferor to, a foreign trust. He consents to the use of his lax return information for other products and services. He has not received a notice from the IRS or any state or local taxing authority within the last year. The IRS has not issued an Identity Protection ID Number for his return. John pays 100 of the household expenses. Johns mother, Vivian, who lives nearby, watches the children while John works. He brings his Form V-2, Form 1099-INT. and n Form 1099-R for a distribution from a 401(k) plan with his prior employer from some years ago. The municipal bond interest was allocated with $80 for Ohio bonds and $25 for California bonds. He had no other income in 2016. There was an insurance policy that paid off the mortgage on his home at the time of his wifes death. He paid 2482 in property taxes He paid $950 in premiums m 2016· Johnalso created tuition snvings accounts for the children. He was able to contribute $500 to the accounts. ln memory of his wife.
John has two kids ages 5 and 9 and neither have income and had 12 months in home along with 12 months health coverage througg chip. John had 39000 in wages 40000 in social security wages and 2552 fed tax withheld. he also has 1507 state tax withheld. he had 98 dollars of interest income. John had 1250 gross dist in a 1099R with 125 tax withheld. He had 12 months market place health coverage.
1. what is johns taxable income?
2. what is johns ohio tax liability before credits?
3. what is johns homestead excess property tax credit amount?
4. what is the total amount of johns subtractions on schedule m?
5 what is johns refund?

Explanation / Answer

Gross Income= 40,000 + 39,000 + 80 + 25 =79, 105$

Deductions:

Social Security- 40,000$, Interest from Ohio Bonds= 80$, Property Tax Paid= 2482$, Tution Savings Account= 500$

Personal/Dependent Exemption= $6750 (2250$ x 3)

1)Taxable Income - 2923$

2) Tax Liability = 557.39 $

3) 0

4) total substractions on schedule m= 0

5) 3626$

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