Joe and Sharon Racca are married and have two children. Joe works as a sales man- Tax Form ager for a national pharmaceutical company and Sharon is a nurse. They own a vacation home in New Hampshire that is used 30% for personal purposes. During the year they receive $1,600 in reimbursements from their medical plan and report

$2,200 of investment income. They contributed stock with a fair market value of

$4,000 that they acquired in 2000 at a cost of $1,700 to Stanton College. The Raccas’

gambling winnings for the year were $1,000 and are included in their adjusted gross income. Their adjusted gross income for the year is $88,000 and they provide you with the following data:

Unreimbursed employee business expenses (after allocation but before limitations)

Complete Form 1040 Schedule A. Joe’s Social Security number is 063-79-4105 and Sharon’s Social Security number is 530-22-6584. Forms and instructions can be downloaded from the IRS Web site (www.irs.gov/formspubs/index.html).

Transcribed Image Text:

Automobile insurance $1,450 Homeowners' insurance 625 Life insurance 980 Disability insurance 375 Health insurance premiums 1,420 Country club dues 1,800 Health club dues 750 Hospital Doctor Chiropractor Dentists 3,500 875 650 1,750 Prescription drugs 275 Over-the-counter drugs 460 State taxes withheld 3,475 Property taxes (ad valorem) 320 Investment interest 1,600