[lolapaloza]

Nelson 67, DOB: 3/15/1946, and Brenda (use student’s last name), 59, DOB: 4/12/1959 are married and have a daughter, Laura, 18 years old, DOB: 12/15/1995, who can be claimed as a dependent on the income tax return. This year Laura received a form 1099 from Haven Savings Bank indicating that she received interest income amounting to $1,300. Nelson is a Manager for IBM and his salary (Per W-2 form) this year was $57,000. Brenda works for Macys and her salary amounted to $25,000.

Nelson provides 100% support of his mother, Irene, age 89, DOB: 4/14/1924, who lives in an apartment of her own. The mother's only income was interest from Dime Savings Bank totaling $3,900.

Nelson retired from IBM in June 30, 2013, the current tax year. He is to receive an annuity amounting to $40,000 per year. In Year 2013 he received $20,000 from his annuity. His contributions or investment in the contract were $300,000. The annuity tables show that Nelson has a life expectancy of 10 years from the annuity starting date. The General Rule is to be used.

Nelson received an ordinary dividend (non-qualifying) amounting to $800 this year from his stock ownership in Intel Corporation. Also interest income from Municipal Bonds issued by the City of N.Y. was received amounting to $2,400.

In addition, Nelson received a $1,700 cash award for length of service. He has been with IBM for 35 years.

Nelson received $3,000 of social security benefits since June 30.

Brenda purchased a couch which retails for $5,000 but its Cost to Macys is only $1,200. She received a 80% discount off the retail price.

Brenda's boss gave her a $975 cash gift at Xmas time.

In addition, Brenda received life insurance proceeds from her mother's death amounting to $100,000 but elected to receive the amount in 5 equal installments of $26,000, starting January 1, 2013, the current tax year.

Other: Nelson & Brenda Green Social Security
Info.: 525 Lexington Avenue, N.Y. N.Y. Numbers

Withholding: Nelson = $14,000 111-11-1111
Brenda = 9,000 222-22-2222
Laura = 0 333-33-3333
Irene . = 0 444-44-4444

PREPARE THE FEDERAL INCOME TAX RETURNS NECESSARY FOR NELSON, BRENDA, LAURA AND IRENE. Each item of income not identified

[smoothy]

Since this is OBVIOUSLY homework and you said as much...


We don't do your homework for you... but if you give us your answers and how you got them... we are willing to give you a hand at that point.

[ebaines]

We won't do your homework for you. If you have a specific question as to how any of these items should be handled please ask.

[lolapaloza]

We won't do your homework for you. If you have a specific question as to how any of these items should be handled please ask.

How would income be reported for this problem as they will be Filing joint with a dependent daughter

[lolapaloza]

How would income be reported for this problem as they will be Filing joint with a dependent daughter

[smearcase]

All of the answers are here and in the other documents, forms, and instructions referred to herein:
http://www.irs.gov/pub/irs-pdf/i1040.pdf

Print out a blank form and start filling it out, one line at a time.