Comprehensive Problem. Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit (Ch. 9), and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020. Andy’s salary $50,000 Federal income tax withheld 4,000 Marcia’s salary 42,000 Federal income tax withheld 5,000 Andy’s contribution to an IRA (assume IRA is deductible for AGI) 2,000 Dividends received from domestic corporations 950 Medical expenses for doctors and hospitals 8,200 Premiums for health insurance 2,600 Prescription drugs and medicines 800 Eyeglasses for one of the children 175 Interest on home mortgage 12,800 Interest on credit cards 300 Real property taxes on residence 6,300 State income taxes 5,800 Fee for preparation of tax returns 125 Union dues and subscriptions 480 Please show all work involved:
Comprehensive Problem. Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit (Ch. 9), and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020.
|
Andy’s salary |
$50,000 |
|
Federal income tax withheld |
4,000 |
|
Marcia’s salary |
42,000 |
|
Federal income tax withheld |
5,000 |
|
Andy’s contribution to an IRA (assume IRA is deductible for AGI) |
2,000 |
|
Dividends received from domestic corporations |
950 |
|
Medical expenses for doctors and hospitals |
8,200 |
|
Premiums for health insurance |
2,600 |
|
Prescription drugs and medicines |
800 |
|
Eyeglasses for one of the children |
175 |
|
Interest on home mortgage |
12,800 |
|
Interest on credit cards |
300 |
|
Real property taxes on residence |
6,300 |
|
State income taxes |
5,800 |
|
Fee for preparation of tax returns |
125 |
|
Union dues and subscriptions |
480 |
Please show all work involved:
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