Question
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive,
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem.
Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year.
John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1982), and Shannons is 412-34-5671 (date of birth 11/3/1984).
Johns W-2 contained the following information:
Wages (box 1) = | $ 66,346.74 |
---|---|
Federal W/H (box 2) = | $ 5,224.75 |
Social security wages (box 3) = | $ 66,346.74 |
Social security W/H (box 4) = | $ 4,113.50 |
Medicare wages (box 5) = | $ 66,346.74 |
Medicare W/H (box 6) = | $ 962.03 |
Shannon did not work for the year due to a medical condition but did receive unemployment compensation of $2,711 for the year with federal withholding of $340.25. In the same year, they had the following medical costs:
Shannons prescribed diabetes medication | $ 4,250 |
---|---|
Shannons hospital charges | 9,350 |
Shannons regular physician visits | 835 |
Shannons eye doctor | 75 |
Shannons diabetes blood testing supplies | 685 |
Insurance reimbursements | 1,925 |
In addition, they had the following other expenses:
State income taxes | $ 4,950 |
---|---|
Real estate property taxes | 4,170 |
Car loan interest | 500 |
Personal property taxes | 765 |
Cash charitable contributions (made ratably throughout the year to their church) | 2,135 |
Mortgage interest expense | 9,970 |
Union dues for John | 575 |
Tax preparation fees | 175 |
Required:
Prepare a Form 1040 with a Schedule 1 and Schedule A for the O'Banions using any appropriate worksheets. (List the names of the taxpayers in the order in which they appear in the problem. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms.)
Use the appropriate Tax Tables.
Please answer using a 2020 1040 form and 2020 Schedule A (1040) Itemized Deduction Form
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