Park Family Federal and Social Security Tax Withheld Case Scenario


The Park family consists of the following:

  • Jackie O. Park; age 40; SSN: XXX-XX-XXXX; business analyst; single; unmarried 
  • Leslie T. Park; age 16; SSN: 000-00-0000; daughter; high-school student; lives at home 
  • Alex K. Park; age 12; SSN: NNN-NN-NNNN; son; middle-school student; lives at home 

Pertinent information:

  • Address: 132 Oakbrook Drive, Houston, Texas 77091 
  • The Parks do not want to contribute to the presidential election campaign 
  • Jackie does not receive child support. She pays all of the household expenses including the upkeep of Leslie and Alex. Only Jackie can claim Leslie and Alex as dependents. 
  • Using the correct Tax Rate Schedule (Not to be confused with the IRS Tax Tables) calculate the tax payer’s Tax Liability 

Jackie had the following earnings on her W-2:

  • Wages: $55,159 
  • Federal tax withheld: $7,460 
  • Social Security tax withheld: $3,420 
  • Medicare tax withheld: $800 

Other tax data:

  • Texas State’s general sales tax deduction allowed is $924. 
  • Jackie received $610 of personal interest income from her bank. 
  • She donated $230 in cash to her church during the year. 
  • Real estate taxes paid on her personal residence were $1,980, and the mortgage interest paid to her bank in New York, NY on the primary residence for the year was $16,000. 
  • Medical expenses for the family were as follows: 
    • medical insurance premium $3,244 
    • payments for doctor’s visits $1,760 
    • $850 was paid for dentists 
    • $230 for prescription drugs 
  • Using the proper tax rate schedule for her filing status, calculate Jackie’s tax liability. 

Assignment Guidelines

To prepare Jackie O. Park’s tax return without the aid of Tax preparation software, complete the following steps:

  1. Ensure that you have an Adobe Reader installed on your computer to open and use the downloadable IRS forms. 
  2. Determine which forms are necessary for Jackie O. Park’s tax return. 
  3. Go to the IRS Web site and download the fill-in tax forms that you will need to complete: 1040 and 1040 Schedule A. 
  4. Complete all necessary downloaded fill-in forms on the computer and save. 
  5. Save the completed forms as PDFs and upload for grading.