ACC 175 - Federal Taxation for Individuals Case 4 - 70 points General Information: Each student must individually complete and submit for grading all pages of the tax return. Prepare the 2020 Tax Return for Alice and Bruce Byrd: Form 1040, pages 1 and 2 Schedule A Schedule 3 Form 2441, page 1 only 2020 Tax Return Information: Alice ). and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 133- 89-6789 and 111-44-1112, respectively. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic. Bruce is the manager of a Super Burgers fast-food outlet. Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. They did not invest in virtual currency. The Byrds provide over half of the support of their three children, Cynthia - age 23, SS# 245-45-6788, John- age 17, SS# 245-56-6786, and Jeremy - age 9, SS# 245-98-1234. Cynthia is a part-time college student and lives with the Byrds. Cynthia earned $8,200 from a summer internship in 2020, and John earned $3,800 from a part-time job. The following information is from their W-2s: Line Description Alice Bruce 1 Wages, tips, other compensation $58,000 $62,100 Federal income tax withheld 4,500 5,300 Social Security wages 58,000 62,100 Social Security tax withheld 3,596 3,850 Medicare wages and tips 58,000 62,100 Medicare tax withheld 841 900 State Massachusetts Massachusetts State wages, tips, etc. 58,000 62,100 2 3 4 5 6 6 15 16 17 State income tax withheld 2,950 3,100 The burde had the follow ror rolating to their rocidonon durinn 2020 The Byrds had the following expenses relating to their personal residence during 2020: Real estate taxes $5,000 Qualified interest on home mortgage (acquisition 8,700 indebtedness, reported on Form 1098) 5,750 4,100 1,900 Repairs to roof Utilities Fire and theft insurance The Byrds had the following unreimbursed medical expenses for 2020: Medical insurance premiums Over the counter medicine Operation for Bruce Prescription medicines for Alyce Hospital expenses for Jeremy $4,500 700 8,500 900 3,500 During 2020, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $240) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65). Alice's employer requires that all employees wear uniforms to work. During 2020, Alice spent $850 on new uniforms and $566 on laundry charges The Byrds paid Kinderfare, Inc $2,800 for after school care for Jeremy. FEI #28-9087612, 84 North Bend Rd, Lowell MA, 01850. The Byrds received a 1099 from Chase Bank for interest earned of $150. No income tax was withheld. HINTS: 1. Determine if the all of the children are dependents. 2. Determine if any expense items are not deductible. 3. Round all numbers to the nearest whole number - no pennies. 4. If a refund is due to them, they would like it directly deposited to their checking account, Chase Bank: routing number, 044000029, account number 124897 5. If payment is due, no penalty needs to be calculated. ACC 175 - Federal Taxation for Individuals Case 4 - 70 points General Information: Each student must individually complete and submit for grading all pages of the tax return. Prepare the 2020 Tax Return for Alice and Bruce Byrd: Form 1040, pages 1 and 2 Schedule A Schedule 3 Form 2441, page 1 only 2020 Tax Return Information: Alice ). and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 133- 89-6789 and 111-44-1112, respectively. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic. Bruce is the manager of a Super Burgers fast-food outlet. Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. They did not invest in virtual currency. The Byrds provide over half of the support of their three children, Cynthia - age 23, SS# 245-45-6788, John- age 17, SS# 245-56-6786, and Jeremy - age 9, SS# 245-98-1234. Cynthia is a part-time college student and lives with the Byrds. Cynthia earned $8,200 from a summer internship in 2020, and John earned $3,800 from a part-time job. The following information is from their W-2s: Line Description Alice Bruce 1 Wages, tips, other compensation $58,000 $62,100 Federal income tax withheld 4,500 5,300 Social Security wages 58,000 62,100 Social Security tax withheld 3,596 3,850 Medicare wages and tips 58,000 62,100 Medicare tax withheld 841 900 State Massachusetts Massachusetts State wages, tips, etc. 58,000 62,100 2 3 4 5 6 6 15 16 17 State income tax withheld 2,950 3,100 The burde had the follow ror rolating to their rocidonon durinn 2020 The Byrds had the following expenses relating to their personal residence during 2020: Real estate taxes $5,000 Qualified interest on home mortgage (acquisition 8,700 indebtedness, reported on Form 1098) 5,750 4,100 1,900 Repairs to roof Utilities Fire and theft insurance The Byrds had the following unreimbursed medical expenses for 2020: Medical insurance premiums Over the counter medicine Operation for Bruce Prescription medicines for Alyce Hospital expenses for Jeremy $4,500 700 8,500 900 3,500 During 2020, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $240) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65). Alice's employer requires that all employees wear uniforms to work. During 2020, Alice spent $850 on new uniforms and $566 on laundry charges The Byrds paid Kinderfare, Inc $2,800 for after school care for Jeremy. FEI #28-9087612, 84 North Bend Rd, Lowell MA, 01850. The Byrds received a 1099 from Chase Bank for interest earned of $150. No income tax was withheld. HINTS: 1. Determine if the all of the children are dependents. 2. Determine if any expense items are not deductible. 3. Round all numbers to the nearest whole number - no pennies. 4. If a refund is due to them, they would like it directly deposited to their checking account, Chase Bank: routing number, 044000029, account number 124897 5. If payment is due, no penalty needs to be calculated