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1.
Erica is a single parent with three children who lives in
Pennsylvania.
Randall is her 19 year old son is a full-time student at Heartland
College and earned $4,900 in 2015 at his part-time job.
Tiffany is 12 and Donna is 14.
All three live at home with Erica who provides more than half
of their support.
a.
Erica had wages in 2015 (box a of W-2) of $64,500 and $2,600
was withheld from her check for federal taxes.
She received 1099-Int from First Federal Savings Bank for
$135, Olympic Savings for $175 and State of Maryland bonds
$300.
Taxable income of 64500 + 135 + 175 + 300 = 65110
b.
Erica paid $6,000 toward tuition at Heartland College for
Randall during 2015.
Erica will contribute the
maximum deductible amount
to her IRA for 2015 and is a participant in her employer’s
pension plan.
c.
Some payments that Erica thinks might be deductible are:
$2,100 withheld from check to pay state income taxes, $700
sales tax paid on purchase of car, copayments on various visits
to doctors and dentists $920, $2,750 for health insurance
withheld from her check that reduced box A, $7,450 for interest
on first mortgage and $1,134 interest paid on 2
nd
mortgage, real estate taxes $2,640, private mortgage insurance
$420, losing lottery tickets $520,
$300 to get her taxes for last year prepared, gifts to her church
$570, two loads of clothes to goodwill $150, mileage to raise
money for the AHA Heart Walk 200 miles, gave $200 to her
sister to buy food.
d.
How much would Erica receive as a refund from her 2015 taxes?
show all work

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1.Erica is a single parent with three children who lives in Penn.docx

  • 1. 1. Erica is a single parent with three children who lives in Pennsylvania. Randall is her 19 year old son is a full-time student at Heartland College and earned $4,900 in 2015 at his part-time job. Tiffany is 12 and Donna is 14. All three live at home with Erica who provides more than half of their support. a. Erica had wages in 2015 (box a of W-2) of $64,500 and $2,600 was withheld from her check for federal taxes. She received 1099-Int from First Federal Savings Bank for $135, Olympic Savings for $175 and State of Maryland bonds $300. Taxable income of 64500 + 135 + 175 + 300 = 65110 b. Erica paid $6,000 toward tuition at Heartland College for Randall during 2015. Erica will contribute the maximum deductible amount to her IRA for 2015 and is a participant in her employer’s pension plan. c.
  • 2. Some payments that Erica thinks might be deductible are: $2,100 withheld from check to pay state income taxes, $700 sales tax paid on purchase of car, copayments on various visits to doctors and dentists $920, $2,750 for health insurance withheld from her check that reduced box A, $7,450 for interest on first mortgage and $1,134 interest paid on 2 nd mortgage, real estate taxes $2,640, private mortgage insurance $420, losing lottery tickets $520, $300 to get her taxes for last year prepared, gifts to her church $570, two loads of clothes to goodwill $150, mileage to raise money for the AHA Heart Walk 200 miles, gave $200 to her sister to buy food. d. How much would Erica receive as a refund from her 2015 taxes? show all work