Kim Davis and Betty Freidan were happily married in Rowan County Kentucky in June 2015.
Their 2015 W-2s provide the following information:
|
Item
|
Kim
|
Betty
|
|
Salary
|
$100,000
|
$450,000
|
|
Federal withholding
|
$20,000
|
$50,000
|
|
State withholding
|
$10,000
|
$27,000
|
|
FICA withholding
|
$6,200
|
$7,347
|
|
Medicare withholding
|
$1,450
|
$6,525
|
In 2015, they have the following expenses (all deductible):
Alimony to Kim's two ex-husbands (total) $20,000
Property tax $25,000
Charitable contributions $15,000
They provide 100% support for the following individuals.
• Fred, Betty's son, who lives with the couple, aged 12. Fred's father is deceased. Fred's only income is interest from a CD of $15,000.
• Susan, Betty's mother, who also lives with the couple, aged 67. Her only income is social security benefits of $12,000 and interest from a CD of $20,000. She has been a widow for 25 years.
• An adopted daughter, My Ha, from Vietnam who is aged 2. The child did not arrive in the US until January, 2016.
• All parties are US citizens except for the adopted daughter.
Required:
1. What is the couple's tax refund (or tax due)? Be sure to show and clearly label all of your work.
2. What is Fred's tax refund (or tax due)? Be sure to show and clearly label all of your work.
3. What is Susan's tax refund (or tax due)? Be sure to show and clearly all of your work.