Complete Rhonda Hill's 2012 federal income tax return.
1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in the home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabels support. Rhonda also provided the following info:
Rhonda does not want to contribute to the presidential election campaign.
Rhonda lives at 1234 Blue Ridge Way, Tulsa, OK 74101.
Rhonda's birthday is 12/18/1957 and her social security number is 335-67-8910.
Mablel's birthday is 11/2/1945 and her social security number is 566-77-8899.
Rhonda does not have any foreign bank accounts or trusts.
2. Rhonda received a Form W-2 from Carter and Associates (her employer) that
contained the following information:
• Line 1 Wages, tips, other compensation: $72,000
• Line 2 Federal income tax withheld: 9,300
• Line 3 Social Security wages: 72,000
• Line 4 Social Security tax withheld: 3,024
• Line 5 Medicare wages and tips: 72,000
• Line 6 Medicare tax withheld: 1,044
• Line 16 State wages, tips, etc.: 72,000
• Line 17 State income tax: 2,700
• Carter and Associates address is 1234 CPA Way
Tulsa, OK 74101; its FEIN is 91:0001002; and its
State ID number is 123456678
3. Rhonda received $250 in interest from Tulsa City bonds, $120 interest from
IBM bonds, and $15 from her savings account at UCU Credit Union. She also
received a $460 dividend from Huggies Company and $500 from Bicker Corpo-
ration. Both dividends are qualified dividends.
4. Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2012. She
purchased the stock on December 12, 2007, for $10 a share. She also sold
50 shares of RSA stock for $15 a share on October 2, 2012. She purchased the
stock for $65 a share on February 2, 2012. Stock basis amounts have been
reported to the IRS.
5. The following is a record of the medical expense that Rhonda paid for herself
during the year. The amounts reported are amounts she paid in excess of insur-
Insurance premiums $900
Prescription medications 100
Over-the-counter medications 250
Doctor and dentist visits 485
Physical therapy 200
6. Rhonda paid $2,800 in mortgage interest during the year to UCU credit union.
She also paid $1,200 in real property taxes during the year.
7. Rhonda contributed $2,350 to Heavenly Church during the year. Heavenly
Church’s address is 1342 Religion Way, Tulsa, OK 74101.