Group 5 – cumulative software problem – Chapter 1 – Text Page 1-45
Albert Gaytor & his wife, Allison, are married & file a joint federal income tax return for 2016. The Gaytors live at 12340 Cocoshell Road, Coral Gables, FL 33134. Mr. Gaytor is a charter fishing boat captain but took 6 months off from his job in 2016 to train & study for his Masters Captain’s License.
In 2016, Albert received a Form W-2 providing the following information from his employer, Coconut Grove Fishing Charters, Inc.:
Employee’s Social Security # = 266-51-1966 / Employer ID # & state = 60-3456789(FL)
Employee’s Name & Address: Employer’s Name & Address:
Albert T. Gaytor Coconut Grove Fishing Charters, Inc.
12340 Cocoshell Road 2432 Bay Blvd.
Coral Gables, FL 33134 Coconut Grove, FL 33133
Box #: Description: Amount:
1 Wages $65,250
2 Federal Income Tax Withheld $6,120
3 Social Security Wages $65,250
4 Social Security Tax Withheld $4,045.50
5 Medicare Wages $65,250
6 Medicare Tax Withheld $946.13
The Gaytors have a 17 years old son, Crocker, who is enrolled in the 11th grade at the Bucholz Preparatory School. The Gaytors also have an 18 years old daughter, Cayman, who is a part-time freshman student at Dade County Community College (“DCCC”). She is married to Sean Slacker, who is 19 years old & a part-time student at DCCC. Cayman & Sean have a 1 year old child, Wanda Slacker (Social Security # 648-99-4306). Sean, Cayman & Wanda all live in an apartment up the street from Albert & Allison during the entire 2016 calendar year. Sean & Cayman both work for Sean’s wealthy grandfather, as apprentices in his business. Their wages for the year were a combined $50,000, which allowed them to pay all of the personal expenses for themselves & their daughter. The following additional information applies to the family members:
Name: Social Security #: Date of Birth:
Albert T. Gaytor 266-51-1966 09/22/1967
Allison A. Gaytor 266-34-1967 07/01/1968
Crocker Gaytor 261-55-1212 12/21/1999
Cayman Slacker 261-11-4444 03/13/1998
Sean Slacker 344-23-5656 05/01/1997
Albert & Allison have a savings account & received the following information on a 1099 from the Vizcaya National Bank, 9871 Coral Way, Miami, FL 33134 (Payer’s tax ID # = 60-7654321): Box 1 = $375.05 (interest earned)
Use a computer software package to complete Form 1040 for Albert & Allison Gaytor for 2016. Be sure to save your data input files since the case will be expanded with more tax information in later chapters. Make assumptions regarding any information not given.