Kim Cerny is a 22-year old recent Kogod graduate who started working for a big-4 firm in May 2023. Prior to her start date, she was a full-time Kogod student and worked part-time for the Kogod Tax Policy center (from Jan. 2023 – May 2023). She had health insurance for the full year under her parents’ insurance. She moved into her own apartment in May, after graduation and started studying for the CPA exam. She also received $1,500 in interest from a savings account that her grandparents has set up for her. Her parents paid her rent until she started working. Details regarding her salary and withholding from her employment are as follows. Prepare a Form 1040 and calculate her tax liability and any tax she owes.
KTPC Big 4
Salary: $2,000 $33,000
Federal Withholding $200 $3,300
State Withholding $75 $1,000
Social Security $150 $2,475