Albert Gaytor and his wife Allison are married and file a joint 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 and study for his Masters Captain’s License.
|Name||Social Security Number||Date of Birth|
|Albert T. Gaytor||266-51-1966||09/22/1967|
|Allison A. Gaytor||266-34-1967||07/01/1968|
The Gaytors have a 17-year-old son, Crocker, who is enrolled in the eleventh grade at the Bucholz Preparatory School. The Gaytors also have an 18-year-old daughter, Cayman, who is a part-time freshman student at Dade County Community College (DCCC). Cayman is married to Sean Slacker, who is 19 years old and a part-time student at DCCC. Sean and Cayman have a 1-year-old child, Wanda Slacker (Social Security number 648-99-4306). Sean, Cayman, and Wanda all live in an apartment up the street from Albert and Allison during the entire current calendar year. Sean and 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 the personal expenses for themselves and their daughter. Albert and Allison have savings account and received the following Form 1099:
In 2016, Albert received a Form W-2 from his employer, Coconut Grove Fishing Charters, Inc
The following additional information is available for the family of Albert and Allison Gaytor.
In 2016, Albert received a Form W-2 from his employer, Coconut Grove Fishing Charters, Inc.:
In addition to the interest from Chapter 1, Albert and Allison also received three Form 1099s:
The Gaytors also received qualified dividends of $500 from Florida Sugar Corp. and interest of $725 from bonds issued by the Miami-Dade County Airport Authority
(Form 1099s not shown).
Albert went to the casino on his birthday and won big, as reflected on the following Form W-2G:
Albert had no other gambling income or losses for the year
In February, Allison received $50,000 in life insurance proceeds from the death of her friend, Sharon.
In July, Albert’s uncle Ivan died and left him real estate (undeveloped land) worth $72,000.
Five years ago, Albert and Allison divorced. Albert married Iris, but the marriage did not work out and they divorced a year later. Under the divorce decree, Albert pays Iris $11,400 per year in alimony. All payments were on time in 2016 and Iris’ Social Security number is 667-34-9224. Three years ago, Albert and Allison were remarried.
Coconut Fishing Charters, Inc. pays Albert’s captain’s license fees and membership dues to the Charter Fisherman’s Association. During 2016, Coconut Fishing paid $1,300 for such dues and fees for Albert.
Allison was laid off from her job on January 2, 2016. For 2016, she received a Form 1099-G for unemployment benefits:
Albert and his family are covered by an employee-sponsored health plan at his work. Coconut Fishing pays $700 per month in premiums for Albert and his family. During the year, Allison was in the hospital for appendix surgery. The bill for the surgery was $10,100 of which the health insurance reimbursed Albert the full
Coconut Fishing also pays for Albert’s parking at the marina. The monthly cost is$120.
Combine this new information about the Gaytor family with the information and complete a 2016 tax return for Albert and Allison. NOTE complete Form 1040 NOT Form 1040A.
Show transcribed image textCORRECTED (fif checked PAYER’S namo, street addross, city or town, state or province, country, ZIP or foreign postal code, and telephone o. Payer’s RTN (optional OMB№ 1545-0112 Vizcaya National Bank 9871 Coral Way Miami, FL 33134 2016 Interest Income 1 Interest income 375.05 Form 1099-INT 2 Earty withdrawal penalty Copy B PAYERS tadsral identification number RECIPIENTS Identification numbar $ For Recipient 60-7654321 266-51-1966 3 Interest on U.S. Savings Bonds and Treas obligations This is important tax nformation and is furnished to the RECIPIENT’S name 4 Federal incamo tax Albert T. Gaytor 6 Foreign tax paid アForsign country ar us possesm] Intemal,Revenue Service, If you are required to file a 9 Specifed pmale adivily bond return, a negligence penalty or other sanction may be ou if this income is taxable and the IAS determines that it has not been reported Street address (including apt. no 12340 Cocoshell Road City or town, state ar province, cauntry, and 2IP ar foreign postal codeS Coral Gables, FL 33134 8 Tax-exermpt intereet interest imposed on y 10 Market discount 11 Bond premium FATCA filing S 12 Bond prenin ri Trees 吖tigaforel 1 Bond premium on t a-eseTpt 14 Tax-cxampt and tax credit 15 State 16 State iclenaicaton no. 17 State tax withhold bond CUS P no. Fomn 1099-INT (keep for your records) www.irsgowlom1099int Departrment of the Treasury-Interal Revenue Service
- Cayman and Sean Slacker are not living with Gaytors and they are earning to meet all their personal expenses. So they are not claimed as dependents including their child Wanda.
- Life insurance proceeds are non taxable and not required to report.
- Real estate land received on death is not taxable. But income generated on that land will be taxed. So in the current year there is no income to be reported relating to this land.
- Dues paid by the employer is not eligible for deduction.
- Insurance premiums paid by the employer is not eligible for deduction.
- Parking fees paid by the employer is not eligible for deduction.