Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alices birthday is September 21, 1973 and Bruces is June 27, 1972. They live at 473 Revere Avenue, Lowell MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (employer ID number is 98-7654321). Bruce is the manager of a Super Burgers fast food outlet owned and operated by Plymouth Corp., 1247 Central Avenue, Hauppauge, NY 11788 (employer ID number is 11-1111111).

The following information is shown on their Wage and Tax Statements (Form W-2) for 2020.

Line Description Alice Bruce

1. Wages, tips & other compensation $58,000 $62,100

2. Federal income tax withheld 4,500 5,300

3. Social Security wages 58,000 62,100

4. Social Security tax withheld 3,596 3,850

5. Medicare wages 58,000 62,100

6. Medicare tax withheld 841 900

15. State MA MA

16 State wages, tips, etc 58,000 62,100

17 State income tax withheld 2,950 3,100

The Byrds provide over half of the support for their two children, Cynthia (born January 25, 1996, Social Security number 123-45-6788) and John (born February 7, 2000, Social Security number 123-45-6780). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $6,200 from a summer internship in 2020 and John earned $3,800 from a part-time job. Both children received scholarships covering tuition and materials.

During 2020, the Byrds provided 60% of the total support of Bruces widower father, Sam Byrd (born March 6, 1944, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sams life, received life insurance proceeds of $1,600,000 on December 28, 2020.

The Byrds had the following expenses relating to their personal residence during 2020:

Property taxes $5,000

Qualified interest on home mortgage (acquisition debt) 8,700

Repairs to roof 5,750

Utilities 4,100

Fire and theft insurance 1,900

The Byrds had the following medical expenses for 2020:

Medical insurance premiums $4,500

Doctor bill for Sam incurred in 2019, paid in 2020 7,600

Operation for Sam 8,500

Prescription medicines for Sam 900

Hospital expenses for Sam 3,500

Reimbursement from insurance company received in 2020 3,600

The medical expenses for Sam represent most of the 60% that Bruce contributed toward his fathers support.

Other relevant information is as follows

1. When they filed their 2019 state tax return in 2020, the Byrds paid additional state income tax of $900.

2. 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.

3. The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts and the clothing is in very good condition.

4. Alice and Bruce made a gift of $400, via a crowdfunding site, to a needy family who lost their home in a fire. They also made several cash gifts to homeless men totaling $65.

5. In 2020, the Byrds received interest income of $2,750, reported on a 1099-INT from Second National Bank, 125 Oak St. Lowell MA. 01850 (EIN 98-7654322).

6. The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, PO Box 1000, Lowell MA, 01850 (EIN 98-7654323). The mortgage (outstanding balance of $425,000 on January 1, 2020) was taken out by the Byrds on May, 1, 2016.

7. Alices employer requires that all employees wear uniforms to work. During 2019, Alice spent $850 on new uniforms and $566 on laundry charges.

8. Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association.

9. Neither Alices nor Bruces employer reimburses for employee expenses.

10. The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax.

11. All members of the family had health insurance coverage for all of 2020.

12. This year the Byrds gave each of their children $2,000 which was then deposited into their Roth IRAs..Alice and Bruce paid no estimated federal income tax and neither wants to contribute to the Presidential Election Campaign Fund. They did not engage in any virtual currency transactions during the year.

Compute the net tax payable or the refund due Alice and Bruce for 2020. If they have overpaid, they want the amount refunded to them. You can do this using the tax forms for 2020. You will need the 1040 and Schedules A and B.