Tax Return Nathan Cohen case
Nathan Cohen , age 45, is a single taxpayer
Who lives at 2245 Mardel St., San Jose, CA 95130.
His social security number is 351-42-1961.
Nathan’s earnings and withholdings as a marketing director at a high-tech company for 2016 are:
– Earnings from Placeware, Inc. $297,000 (this is after subtracting his health insurance premiums –see below)
-Federal Income tax withheld $50,000
-State income tax withheld $23,500
Other facts and possibly useful information:
-Nathan earns interest on a savings account at Bank of the West of $13,075.
-Nathan is divorced and pays his ex-wife $4,000 per month.
When their 15-year old daughter (who lives 100% with the ex-wife) reaches 18, the payments drop to $2,800 per month.
His ex-wife’s social security number is 857-51-6438.
Nathan does not claim his daughter as a dependent.
Nathan paid the following amounts (he has records to prove payment):
California DMV renewal taxes (the value based part) : $300
Credit card interest expense $1,760
Auto Loan interest expense $4,300
Property taxes on his home $6,200
Blue Cross health insurance premiums $1,800 withheld from his paycheck.
Other medical expenses $790
Income tax preparation fees for his 2015 income tax return $900
Federal 2015 income taxes paid in April 2016 when he filed his 2015 federal income tax return $1,825
California 2015 income taxes paid in April 2016 when he filed his 2016 California tax return $500
Check to Boy Scouts of America $1,100
Check for fundraiser to build a new building at Harker School, where his daughter goes, $8,000.
This payment was not related to tuition and neither Nathan nor his family received any specific benefits.
Check to St. Andrews Church $10,000
Stanford Business School Alumni Association $12,000 (fundraiser to support the business school)
Silicon Valley Republican Party Fund $1,000 (2016 campaign fundraiser)
Nathan paid $100 to attend a fundraising dinner at the Tech Museum of Innovation, the value of the dinner is $50.
Nathan received a Form 1098 Mortgage Interest Statement from Bank of the West indicating $19,700 of interest expense on his mortgage (a qualified acquisition mortgage)
Complete Nathan’s Form 1040, Schedule A and Schedule B. Don’t forget he paid state taxes. If you need to make assumptions, they should be realistic.
Hint: remember that deductions and exemptions may be limited.
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