Tax Return 2013

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TAX RETURN No. 1 –Part II Spring, 2013
Henry and Helen Cummings are married and they live in Geneseo, N.Y. Henry is 37 and Helen is 34. They have two children, Robert and Mary. Robert is 6 years old and Mary is 4 years old, and neither has any income and both children qualify as their parent’s dependents. Helen is a licensed physical therapist. Henry is a manager for Baker Corporation, which is located in Rochester, New York. In February 2012, the Cummings provided you with the following information for preparing their 2012 federal income tax return: 1. The Cummings use the cash method of accounting and file their return on a calendar-year basis. 2. On May 15, 2012, Helen received $25,000 as a gift from her Aunt Mary. 3. The couple has a total amount of interest income for 2012 of $5000, of which $2,000 is interest from a savings account at ABC Bank, and $3,000 is interest on NY state bonds. 4. Henry’s salary is $50,000, and Helen’s is $70,000. 5. Helen paid $4,000 in alimony to a former spouse, Ben Johnson. Alimony is a deduction FOR AGI. 6. They had a total of $ 14,000 federal income tax withheld, of which $5,000 was withheld from Henry’s paycheck and $9,000 was withheld from Helen’s paycheck. 7. They contributed $1,500 to qualifying charitable organizations during 2012. This charitable contribution and their New York income tax withholding amounts, which together totaled $6,000, are the only amounts that would qualify as itemized deductions. 8. The Cummings qualify for a “Child tax credit” in the amount of $1,600 (line 51, Form 1040, p. 2).

DUE DATE: PART I AND PART II are both subject to collection on Thursday, 2/21 (beginning of class)
REQUIREMENTS: If you worked in a group for Part I, you must work in that group for Part II. Each of the two parts, Part I and Part II, will need to have the pages for that…...

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