Tax Accounting

Keisha Sanders, a divorced single taxpayer and practicing attorney, at 9551 Oak Lane in MenifeeCA 92584. Her social security number is 412-34-5670 (date of birth 2/27/1976) Her W-2 contained the following information :

Wages (box 1) = $ 84,601.55

Federal W/(box 2) = $ 8,898.38

Social security wages (box 3) = $ 84,601.55

Social security W/H (box 4) = $ 5,245.30

Medicare wages (box 5) = $ 84,601.55

Medicare W/H (box 6) = $ 1,226.72

In addition Keisha made alimony payments totaling $for the year to her former husband Alexan unemployed mine worker whose social security number is 412 - 34 - 5671 . This was in regards to a divorce decree that was completed prior to November 2017 and had not been amended post 2018. She also received a 1099 INT from Menifee Credit Union in the amount of $254.85 Keisha also has the following information for her Schedule A itemized deductions:

Interest expense Home mortgage ( qualified residence interest) $8100

MasterCard (used exclusively for personal expenses and purchases) $675

Car loan personal use) $710

Student loan interest $1,750

Taxes paid State income tax withheld $2,950

State income tax deficiency (for 2018) $350

Real estate property taxes- principal residence $1,700

Personal property taxes- car $75

Registration fee $125

Medical expenses Doctors fees $635

Prescription drugs $260

Vitamins and over -the- counter drugs $250

Dental implant to correct a bite problem $1,600 Health club fee $400

Charitable contributions required documentation is maintained

Cash:

Church ( made ratably throughout the year and no single contribution was greater than $250) $3100 United Way $100

PBS annual campaign $200

Property

Pine Cove Goodwill -used clothing and household Date of donation November 15,2020

Thrift shop value at date of donation $550

Actual purchase price of the items $1300

Sample Solution