ANSWER THE FOLLOWING FOR EACH QUESTIONS:

A) Determine the AGI this year for the taxpayer(s).

B) Determine the amount of itemized deductions the taxpayer(s) has (have) available this year.

C) Using the 2018 standard deduction amounts (assuming no additional amounts for age or blindness) from Appendix D in of your book, state whether the taxpayer(s) itemize or take the standard deduction. I am not asking for you to state the amount of either the standard deduction or the itemized deductions chosen.

D) Use the individual tax formula and a flat 20% tax rate on all types of taxable income to determine the amount of taxes due or refund amount. Remember to clearly marking the answer as either the amount of tax due or a refund due (e.g. refunds are negative amounts as represented with parentheses or a negative sign, alternatively you can just write refund next to it). Assume AMT does not apply, and there are no tax credits available.

1. Stacie and Ryan are married and file jointly for the 2018 tax year. They have two sons. Their sons are age 10 and 14. Stacie and Ryans wages in total for the year was $133,000. Their employers withheld $18,000 in tax from their wages. In addition to the above, the following occurred the 2018 tax year:

They moved several states away because of career relocation for Ryan. Their unreimbursed moving costs were $10,000.

Stacie and Ryan pay $3,500 of the interest on a loan Ryans postsecondary education.

They paid $2,000 in medical insurance premiums for the year. In addition, they paid $1,000 for hospital stay after an emergency room trip for Stacie.

The couple paid $250 for an accountant to prepare their taxes.

Their accountant calculates that their total state income tax liability is $4,000. The couple pay all their state taxes during the 2018 tax year.