Question

Taxpayer: Adrian Monk Home Address: Pine & Divisidero San Francisco, CA 94115 Social Security # 185-34-7786 Birth Date: 9/15/53 Status: Widower (Wife died in 2012) No Dependents Occupation: Detective with the San Francisco Police Dept. Income 2018: Wages & Taxes Withheld from W2 Form Taxable Wages - $108,000 Federal Income Tax Withheld - $14,984 State & Local Taxes Withheld - $4, 007 Interest Income: Golden Gate Bank - $880 State of California Highway Bond (Tax Free Municipal Bond) - $2,700 Dividend Income (Assume Non- Qualified Dividends): Vanguard Global Equity Fund - $820 Apple Inc - $1,500. Other Income: Gift from an uncle $150,000 Personal Expenses: Medical Expenses - $6,350 Real Estate Taxes on Home - $9,120 Paid his brother Ambrose’s Real Estate Tax for 2018 - $5.550 Home Mortgage Interest - $13,205 Charitable Contributions - $1,600 Paid parking Fine to the City of San Francisco - $85 Political Contributions - $800 Other Expenses Contribution to an Individual Retirement Account - $3,000 Required: Calculate Adrian Monk’s 2019 Federal Income Tax Return Calculate the Tax Owed or Refund Required Forms to download from Blackboard: Form 1040 Schedule 1 Schedule A Schedule B 1) Medical Expenses must be reduced by 7.5% of Adjusted Gross Income (AGI) in 2019.Medical Expenses are not reduced by 10% until tax year 2020 2) If Medical Expenses are less than 7.5% of Adjusted Gross Income, no medical expenses can be deducted