Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Se- curity numbers are 123-45-6789 and 111-11-1111, respectively. Alices birthday is Sep- tember 21, 1967, and Bruces is June 27, 1966. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Low- ell, MA 01850 (employer identification number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (employer identification number 11-1111111).

The following information is shown on their Wage and Tax Statements (Form W2) for 2014.

1 Wages, tips, other compensation 58000alice 62100 bruce

2 Federal income tax withheld 45000Alice 6300Bruce

3 Social Security wages 58000Alice 62100Bruce

4 Social Security tax withheld 3596Alice 3850Bruce

5 Medicare wages and tips 58000Alice 62100Bruce

6 Medicare tax withheld 841alice 900 bruce

15 State Massachuetts

16 State wages, tips, etc. 58000Alice 62100bruce

17 State income tax withheld 2950Alice 3100Bruce

The Byrds provide over half of the support of their two children, Cynthia (born January 25, 1990, Social Security number 123-45-6788) and John (born February 7, 1994, Social Security number 123-45-6786). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $4,200 from a summer internship in 2014, and John earned $3,800 from a part-time job. During 2014, the Byrds provided 60% of the total support of Bruces widower fa- ther, Sam Byrd (born March 6, 1938, 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 in- surance proceeds of $800,000 on December 28. The Byrds had the following expenses relating to their personal residence during 2014: Property taxes 5000 Qualified interest on home mortgage 8700 Repairs to roof 5750

Utilities 4100 Fire and theft insurance 1900

The Byrds had the following medical expenses for 2014:

Medical insurance premiums 4500 Doctor bill for Sam incurred in 2013 and not paid until 2014 7600 Operation for Sam 8500 Prescription medicines for Sam 900 Hospital expenses for Sam 3500 Reimbursement from insurance company, received in 2014 3600

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

Other relevant information follows:

When they filed their 2013 state return in 2014, the Byrds paid additional state income tax of $900.

During 2014, 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 $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition.

In 2014, the Byrds received interest income of $2,750, which was reported on a Form 1099INT from Second National Bank.

Alices employer requires that all employees wear uniforms to work. During 2014, Alice spent $850 on new uniforms and $566 on laundry charges.

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

Neither Alices nor Bruces employer reimburses for employee expenses.

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

All members of the Byrd family had health insurance coverage for all of 2014.

Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce

wants to designate $3 to the Presidential Election Campaign Fund.

Part 1Tax Computation

Compute net tax payable or refund due for Alice and Bruce Byrd for 2014. If they have overpaid, they want the amount to be refunded to them.