COMPREHENSIVE TAX RETURN PROBLEM &Nbsp;
Note:
[1] Antonia Kept the Award from the a Restaurant

question 155

Essay

COMPREHENSIVE TAX RETURN PROBLEM.Your cousin,Antonia,who is 30 years old,single and a restaurant manager,heard that you have enrolled in the Masters of Taxation program at State University.She has asked you for help in preparing her 2013 tax return and provides you with the following information:
$\begin{array}{lr}\text { Salary } & \$ 50,000 \\\text { Alimony received } & 3,600 \\\text { Interest on GMAC Bonds } & 800 \\\text { Interest on City of New Orleans Bonds } & 1,300 \\\text { Interest on a bank savings account } & 600\\\text { Berlinco, Inc. (a foreign corporation) (nonqualified dividend) } & 100 \\\text { Long-term capital gain } & 2,000 \\\text { Long-term capital loss } & (1,000) \\\text { Short-term capital gain } & 5,000\\\text { Short-term capital loss } & (3,000) \\\text { Short-term capital loss carryover from } 2011 & (5,000) \\\text { Cash award from local United Way [1] } & 300\\\text { Christmas turkey [2] } & 30 \\\text { Parking at office [2] } & 500 \\\text { Membership in professional organizations [2] } & 100 \\\text { Group term life insurance }(\$ 40,000 \text { policy })[2] & 135\\\text { Unreimbursed medical expenses: }\\\text { Medical insurance premiums } & 1,900 \\\text { Prescription drugs } & 250 \\\text { Dentist } & 2,250 \\\text { Emergency room fee } & 885 \\\text { Cold pills, aspirin, other over-the-counter medicine } & 120 \\\text { Rental fee for crutches } & 80\\\\\text { Real estate taxes } & \$ 600 \\\text { State income tax withheld } & 1,150 \\\text { State income tax paid in } 2012 \text { for } 2011 \text { tax return } & 150 \\\text { Home mortgage interest } & 3,800 \\\text { Home equity interest [3] } & 500 \\\text { Charitable contributions - cash } & 350\\ \text {Charitable contributions - clothes [4] }\\ \text {Tax preparation fee for 2011 return, paid in 2012 }&300\\ \text {Unreimbursed business expenses [5] }&888\\\end{array}$
 
Note:
[1] Antonia kept the award from the United Way.
[2] Benefits paid by the employer.
[3] Antonia borrowed $12,000 and used the proceeds to purchase a new car.
[4] The original cost of the clothes were $480 and the current FMV is $200
[5] Of the $888 in expenses,$180 are for meals and entertainment.
Compute Antonia's: adjusted gross income,taxable income,and tax liability.

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Definitions:

Red-Tape

Excessive bureaucracy or adherence to strict and complex rules and procedures that can hinder decision-making and efficiency.

Leadership Ranks

Levels or positions of authority within an organization that signify varying degrees of responsibility and command in leadership roles.

Paying Sufficient

Ensuring adequate compensation for work or services rendered, often to satisfy ethical, legal, or contractual requirements.

Career Counseling

A process designed to help individuals understand themselves and the workforce to make informed career, educational, and life decisions.