Use the following information to complete Keith and Jennifer Hamilton’s 2015 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.
Form 1040, supporting schedules, and instructions to the forms and schedules can be found at the IRS Web site (www.irs.gov).
Facts:
Keith Hamilton is employed as an airline pilot for Flyby Airlines in Las Vegas, Nevada. Jennifer is employed as a teacher’s assistant at Small World Elementary School, in Henderson, Nevada. Keith and Jennifer live in a home they purchased this year. Keith and Jennifer have three children who lived with them all year, Joshua (17), Danielle (14), and Sara (10). Keith and Jennifer provided the following personal information:
Keith and Jennifer do not want to contribute to the presidential election campaign.
Keith and Jennifer do not claim itemized deductions.
Keith and Jennifer live at 3678 Blue Sky Drive, Henderson, Nevada 89052.
Keith’s birthday is 10/12/1970 and his Social Security number is 535-22-4466.
Jennifer’s birthday is 7/16/1973 and her Social Security number is 535-44-2255.
Joshua’s birthday is 6/30/1998 and his Social Security number is 454-54-5454.
Danielle’s birthday is 8/12/2001 and her Social Security number is 343-43-4343.
Sara’s birthday is 5/13/2005 and her Social Security number is 232-32-3232.Page C-1
Keith received the following Form W-2 for 2015 from Flyby Airlines.
Jennifer received the following Form W-2 for 2015 from Small World Elementary School.
During 2015, Keith and Jennifer received $550 in interest from Las Vegas municipal bonds, $1,070 interest from U.S. Treasury bonds, and $65 from their savings account at SCD Credit Union. Keith and Jennifer are joint owners of the Las Vegas city bonds and the U.S. Treasury bonds. They have a joint savings account at SCD Credit Union.Page C-2
On January 21, 2015, Jennifer was involved in a car accident. Because the other driver was at fault, the other driver’s insurance company paid Jennifer $1,350 for medical expenses relating to her injuries from the accident and $300 for emotional distress from the accident. She received payment on March 15, 2015.
Keith’s father died on November 15, 2014. Keith received a $100,000 death benefit from his father’s life insurance policy on February 8, 2015.
On February 15, 2015, Keith hurt his arm on a family skiing trip in Utah and was unable to fly for two weeks. He received $4,000 for disability pay from his disability insurance policy. He received the check on March 2, 2015. Flyby Airlines paid $600 in premiums on this policy during 2015. The disability insurance policy premiums are paid for by Flyby Airlines as a fully taxable fringe benefit to Keith (the premiums paid on his behalf are included in Keith’s compensation amount on his W-2).