Question
47 Chapter 8 Comprehensive Problem . Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the
47 Chapter 8 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.
| Andys salary |
$50,000 |
| Federal income tax withheld | 4,000 |
| Marcias salary | 42,000 |
| Federal income tax withheld | 5,000 |
| Andys 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 |
Requires you to prepare 1040
Schedule A Itemized deduction
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