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Robert A. Harrington (SSN 509-93-8830) is 66, and retired in July, 2014. His wife June, 62, had a full-time job at a bank through October, 2015. They live at 3487 South Center Street, Salt Lake City, UT 84101-9876. During 2015, he received $6,000 from his traditional IRA (fully taxable). He also received monthly payments of $1,500 from an annuity he purchased for $195,000 with after-tax dollars. He received 6 annuity payments in 2014, and 12 payments in 2015. He also received $16,000 (box 5 of Form 1099-SSA) in Social Security income for 2015. They received interest and dividend income as follows:               

From Form 1099-INT-

State of Illinois municipal bond                        $1,750 (box 8)

Bryce Corporation bond                                    3,830 (box 1)

First Federal Savings Bank                                175 (box 1)       

US Treasury notes                                            450 (box 3)

From Form 1099-DIV-

Exxon Mobil common stock - ordinary and qualifying                      $975 (box 1a and 1b)

UCB Corporation - ordinary and qualifying                                      280 (box 1a and 1b)

UBC Corporation - return of capital                                                800 (box 3)

Acme Mutual Fund - capital gain distribution                                    1,100 (box 2a) 

In addition, Mr. Harrington paid $4,000 in estimated tax payments during 2015 (line 41 of Form 1040A).

June's W-2 for 2015 shows $14,500 of taxable wages, and she had $650 withheld for federal income tax. June lost her job November 1, 2015, and she received $3,200 in unemployment compensation for 2015.

Given this information, please complete the Harrington's tax return for 2015.

You will need Form 1040A, Schedule B, pension and annuity worksheet, Social Security worksheet, and qualifying dividends and capital gain tax worksheet.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92018009

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