Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are XXX-XX-XXXX and XXX-XX-XXXX, respectively. Alices birthday is sept 21, 1966, and Bruces is June 27, 1965. They live atXXXXX Ames, MA 01850. Alice is the office manager for Ames Dental Clinic,XXXXX Ames, Ma 01850(employer identification number 98-765432). Bruce is the manager of a Super Burger fast-food outlet owned and operated by Plymouth Corporation,XXXXX Hauppauge, NY 11788 (employer identification number 11-1111111). The following information is shown on their Wage and Tax Statements ( Form W-2) for 2010.

Line Description Alice Bruce

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

2 Federal income tax withheld 4,500 6,300

3 Social Security wages 58,000 62,100

4 Social Security tax withheld 3,596 3,850

5 Medicare wages and tips 58,000 62,000

6 Medicare tax withheld 841 900

15 State Massachusetts Massachusetts

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 of their two children, Cynthia (born January 25, 1986, Social Security number XXX-XX-XXXX) and John (born February 7, 1990, social Security number XXX-XX-XXXX. 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 2013, and John earned $3,800 from a part-time job.

During 2013, the Byrds furnished 60% of the total support of Bruces widower father, Sam Byrds ( born March 6, 1934, Social Security number XXX-XX-XXXX). Sam lived alone and covered the rest of his support with Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sams life, received life insurance proceeds of $800,000 on December 28.

The Byrds had the following expenses relating to their personal residence during 2013:

Property taxes $5,000

Qualified interest on home mortgage 8,800

Repairs of roof 5,750

Utilities 4,100

Fire and theft insurance 1,900

The following facts relate to medical expenses for 2013:

Medical insurance premiums $4,500

Doctor bill for Sam incurred in 2012 and not paid until 2013 7,600

Operation for Sam 8,500

Prescription medicines for Sam 900

Hospital expenses for Sam 3,500

Reimbursement from insurance company, received in 2013 3,600

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

Other relevant information follows:

When they filed their 2012 state return in 2013, the Byrds paid additional state income tax of $900.

During 2013, Alice and Bruce attended a dinner dance sponsored by the Ames 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 Ames 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 are in very good condition.

In 2013, the Byrds received interest income of $2,750, which was reported on a Form 1099-INT from Second National Bank.

Alices employer requires that all employees wear uniforms to work. During 2010, Alice spent $450 on new uniforms and $225 on laundry charges.

Bruce paid $400 for an annual subscription to the Journal of Franchise Management.

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.

Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce wishes to designate $3 to the Presidential Election Campaign Fund.

Part 1 - Tax Computation Compute net tax payable or refund due for Alice and Bruce Byrd for 2013. If they have overpaid, they want the amount to be refunded to them. If you use tax forms for your computations, you will need Forms 1040 and 2106 and Schedules A and B.