Dr. Carol Harris, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335 and her birthdate is July 1, 1968. Carol is an Associate Professor of Accounting at a local college. Carol’s earnings and withholding from the college for 2016 are:

Earnings$54,600Federal income tax withheld7,800State income tax withheld2,650FICA tax of $3,385.20 and Medicare tax of $791.70 were also withheld from Carol’s earnings. Carol’s other income includes interest of $167 from a savings account at Bank of the Carolinas and $485 of qualified dividends from Microsoft.

Carol received a 2016 Form 1099-G from the state of North Carolina reporting a state income tax refund of $127 from 2015. Carol itemized her deductions in 2015.

During the year, Carol paid the following amounts (all of which can be substantiated):

Home mortgage interest$6,410Visa card interest350Auto insurance750Property taxes on personal residence2,700Other medical expenses810Charitable contributions (in cash)967Actual state sales tax872Carol had the following stock market transactions, all of which were reported on Form 1099-B, along with the basis of the stock sold:

StockAcquiredSoldPriceBasisHammerhead Inc.04/05/0910/15/16$5,900 $3,200 Leopard Corp.02/01/1608/03/16$7,000 $5,400 Sand Corp.09/12/1110/15/16$7,100 $8,500 In addition to being a professor at the local college, Carol maintains a CPA practice located at 700 Accounting Way, Durham, NC 27409. Income and expenses from this activity are: