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4. Apple and Bob Johnson (both age 45) are married taxpayers who file a joint return. They have a son, John, age 10. For 2021,
4. Apple and Bob Johnson (both age 45) are married taxpayers who file a joint return. They have a son, John, age 10. For 2021, They had the following receipts: 1 Salary (Apple's salary: $85000, Bob's $72,000) $157,000 2. Interest Income City of Normal school bonds $1,000 Ford Motor Company bonds 1,200 PNC Bank certificate of deposit 600 2,800 3. Annual gift from parents 26,000 4. Lottery winnings 1,000 5. Short-term capital loss (from stock investment) 6. 1,000 6. Long-term capital gain (from stock investment) Federal income tax refund from year 2017 return For 2021, They also have the following payments/contributions: 1. Medical expenses Medical insurance premiums $4,500 Hospital expenses for John 9,000 (5000) 2,400 4,500 2. Property taxes 5,000 3. Contribution to IRA 10,000 4. Qualified interest on home mortgage 5.000 5. 6. Utilities (water, gas, and electricity) Car insurance 4,500 1,200 7. State income tax paid 13,000 8. Interest on car loan 1,500 9. Cash contribution to church 3,300 10. Bob paid the alimony to his ex-wife 8,000 Please help Johnsons to calculate the following items on Form 1040, for the year 2021 1. Their Total Gross income 2. Their AGI 3. Their taxable income 4. and the following itemized deductions: 1. Allowable deduction on medical and dental expenses: 2. Allowable deduction on taxes they paid 3. Allowable deduction on Interest paid 4. Allowable deduction on Gift to Charity 5. Allowable miscellaneous deductions
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