Problem: Please complete the comprehensive problem providing detailed computations with labels. The problem is worth 40% of your grade. Mike and Laura Weiss are married and file a joint return. Mike is a self-employed orthodontist, and Laura is a college professor. Mike and Laura have three children. The oldest is Matt, 23, who lives at home and is a Medical student at the University of Cincinnati. He worked part-time this year and earned $2,500 that he used to pay his own support. Matt and Laura provided $9,500 toward Matt’s support not including $12,000 they paid for medical school tuition. They also provided over half the support of their daughter Diane, who is a full-time student at Kenyon College. Diane worked part- time as a waitress this year, earning $4,500 but received $20,000 for tuition from her parents during 2015. Diane lived at home until she was married in December 2015 and then moved in with her husband, Patrick. She filed a joint return with Patrick who made $25,000 during the year. Alice is the youngest and lived in the Weiss’ home for the entire year. She is 14 and attends the local middle school. She made $900 this year in babysitting revenue. Laura is a math professor at Xavier University in Cincinnati, where she earned $35,000. The university withheld federal income tax of $3,575, state income tax of $850, Cincinnati city income tax of $350, $1,920 of social security and $485 of medicare tax. She also worked part-time for the Cincinnati Bengals. The NFL franchise paid her $12,000 in salary and withheld $1,205 of federal income tax, $350 of state income tax, $155 of Cincinnati city income tax, $590 for social security and $145 for medicare tax. Laura is required by the university to visit several high schools in the area to evaluate students who are completing their student teaching. However, she is not reimbursed for the expenses she incurs in doing this. During the spring and fall semesters of 2015 she drove her personal automobile 6,350 miles in fulfilling this obligation. She has always used the standard mileage method for computing this deduction. The Weiss’s received $1100 of interest from State Savings Bank on a joint account. They also received interest of $1,050 on City of Cincinnati School District Bonds. They own stock in Charter Corporation and Delhi Company which they received a total of $1,405 in qualified dividends during the year. Mike felt the market was going to crash during 2015 so he decided to liquidate some stocks and invest the money in his business. They sold the following stock in the beginning of the year: Company Date Purch. Date Sold Sales Price Original Cost Rose Company 500 shares 8/10/2001 1/2/2015 $29,000 $37,000 Big Sky Industries 200 shares 9/12/2015 12/2/2015 $12,000 $15,000 Blue Hat Inc. 150 shares 9/23/2000 1/2/2015 $13,000 $5,500 Laura also sold a painting from her grandmother. Her grandmother died this year and.

1. Problem: Please complete the comprehensive problem
providing detailed computations with labels. The problem is
worth 40% of your grade.
Mike and Laura Weiss are married and file a joint return. Mike
is a self-employed orthodontist, and Laura is a college
professor. Mike and Laura have three children. The oldest is
Matt, 23, who lives at home and is a Medical student at the
University of Cincinnati. He worked part-time this year and
earned $2,500 that he used to pay his own support. Matt and
Laura provided $9,500 toward Matt’s support not including
$12,000 they paid for medical school tuition. They also
provided over half the support of their daughter Diane, who is a
full-time student at Kenyon College. Diane worked part-
time as a waitress this year, earning $4,500 but received
$20,000 for tuition from her parents during 2015. Diane lived
at
home until she was married in December 2015 and then moved
in with her husband, Patrick. She filed a joint return with
Patrick who made $25,000 during the year. Alice is the
youngest and lived in the Weiss’ home for the entire year. She
is
14 and attends the local middle school. She made $900 this
year in babysitting revenue.
Laura is a math professor at Xavier University in Cincinnati,
where she earned $35,000. The university withheld federal
income tax of $3,575, state income tax of $850, Cincinnati city
income tax of $350, $1,920 of social security and $485 of
medicare tax. She also worked part-time for the Cincinnati
Bengals. The NFL franchise paid her $12,000 in salary and
withheld $1,205 of federal income tax, $350 of state income

2. tax, $155 of Cincinnati city income tax, $590 for social
security and $145 for medicare tax.
Laura is required by the university to visit several high schools
in the area to evaluate students who are completing their
student teaching. However, she is not reimbursed for the
expenses she incurs in doing this. During the spring and fall
semesters of 2015 she drove her personal automobile 6,350
miles in fulfilling this obligation. She has always used the
standard mileage method for computing this deduction.
The Weiss’s received $1100 of interest from State Savings Bank
on a joint account. They also received interest of $1,050
on City of Cincinnati School District Bonds. They own stock in
Charter Corporation and Delhi Company which they
received a total of $1,405 in qualified dividends during the
year. Mike felt the market was going to crash during 2015 so
he decided to liquidate some stocks and invest the money in his
business. They sold the following stock in the beginning
of the year:
Company Date Purch. Date Sold Sales Price Original Cost
Rose Company 500 shares 8/10/2001 1/2/2015 $29,000
$37,000
Big Sky Industries 200 shares 9/12/2015 12/2/2015 $12,000
$15,000
Blue Hat Inc. 150 shares 9/23/2000 1/2/2015 $13,000 $5,500
Laura also sold a painting from her grandmother. Her
grandmother died this year and Laura did not want to keep the
painting. The painting was received as a gift in 2013 and was
valued at $15,000 at the time. Her grandmother bought the
painting from a friend for $2,000. Laura sold the painting for
$20,000 this year and used it to help pay for education
expenses.

3. Mike practices under the name of Mike P. Weiss Orthodontics.
During the year he had $345,000 of gross receipts and the
following expenses during the year:
Advertising $1,200
Professional Journals and Dues $490
Contributions to employee benefit plans $2,000
Malpractice Insurance $3,200
Fine for overbilling State of Ohio $5,000
Insurance on office contents $720
Accounting Services $2,100
Office Expenses $4,388
Office Rent $12,000
Dental Supplies $17,672
Utilities and Telephone $3,360
Wages for employees $60,000
Payroll Taxes $2,400
Mike withdrew $100,000 from the business for personal
expenses. In June, Mike decided to refurbish his office with the
proceeds from the stock sales. The project was completed on
July 1. Mike’s expenditures included $18,000 for new
office furniture, $10,000 for new equipment and $6,000 for two
new office computers.
The Weiss’ owned a rental property which was purchased in
2005 for $155,000. From January 1 of 2006 the Weiss’ were
lucky enough to have the same tenant because it made it easy to
manage the property. They received $800 in monthly
rent for the year. They had the following expenses during the
year:
Property Insurance $500

4. Property Taxes $800
Maintenance $465
Utilities $275
Depreciation $4,870
Landscaping $300
Mike and Laura have the following receipts for expenses during
2015:
Prescription medicine and drugs $376
Doctor Bills $2,468
Penalty for underpayment of prior year Federal tax $15
Real estate taxes on personal residence $4,762
Interest on Home Mortgage $8,250
Interest on Car Loan (Laura) $595
Cash Contributions to Synagogue $6,080
Payroll deduction for Contribution to United Way $150
Professional Dues and Journals (Laura) $325
Fee for preparation of tax returns $500
The Weiss’s filed their 2014 federal, state and local returns on
April 1, 2015. They paid the following additional taxes
with their returns: Federal income taxes $6355, State Income
Taxes $285 and city income taxes of $105. They also paid
estimated taxes during 2015 in the amount of $46,000 in Federal
Taxes, $1,200 in State Taxes and $600 in city taxes. All
estimated taxes were paid by December 31.
What is the amount owed/refunded by the Weiss’s for 2015?