Federal Income Tax Computation and Planning for Jane Smith, 2015-2016

This assignment focuses on calculating Jane Smith's 2015 federal income tax liability and providing tax planning advice for 2016. The solution involves analyzing various income and expense items, including salary, business income and expenses, interest, bonuses, insurance proceeds, gifts, gambling winnings, and capital gains/losses. It requires the preparation of relevant tax forms, such as Form 1040 and Schedule A, C, and D, to determine adjusted gross income, itemized deductions, and tax payable or refund due. The assignment also involves projecting income and expenses for 2016, considering changes in business activity, and calculating the minimum estimated tax payments needed to avoid additional tax liability. A letter to Jane Smith with tax advice and a memo for the tax files are also required.