\begin{tabular}{|l|lr|} \hline Bruce's Salary -W2 & $ & 62,100.00 \\ Alice's Salary -W2 & $ & 58,000.00 \\ Interest & $ & 2,750.00 \\ \hline Adjusted Gross Income & $122,850.00 \\ \hline Less: Itemized Deductions (Note 1) & $ & (36,486.25) \\ \hline Total Taxable Income & $ & 86,363.75 \\ \hline Tax from tax table 2021 & $ & 10,500.00 \\ \hline Tax credits available (Note 2) & $ & (1,000.00) \\ Tax withholings and tax payments (Note 3) & $ & (9,800.00) \\ \hline Amount overdue (refund) & $ & (300.00) \\ \hline \end{tabular} Working Note: Note 1: Note 2: Son, John and Father, Sam, qualifies as a dependent. Cynthia cannot be claimed as a dependent because she is not under age 24 (so she is not a qualifying child) and has too much income (more than 4400) to be a qualifying relative. John does not qualify for the child tax credit since he is not under age 17. But both John and Bruce qualify for the dependent tax credit of $500 each 2500=$1,000.00 Note 3 : Prepayment and credits income tax withheld 2021 5300+4500$9,800.00 Note 4: Total deduction of taxes i.e., state, local, sales and property taxes should not exceed $10,000 and in here it is valued at (11,950). Therefore, it is limited to $10,000 Note 5 : The expenses for Alice's uniforms and laundry ($850+$566) and Bruce's professional journals and dues ( $400+$741) are employee business expenses. The TCJA of 2017 suspends the deduction for these expenses as miscellaneous itemized deductions from 2018 through 2025 Note 6: Neither the $400 given to a needy family via a crowdfunding site nor the $65 given to homeless individuals qualifies for a charitable contribution as the amounts were not given to qualified organizations. Note 7: The cost of the repairs to roof ($5,750), the utilities expense ($4,100) and the cost of the fire and theft insurance ($1,900) are all nondeductible expenses. The $1,600,000 life insurance proceeds is not taxable since it was paid out due to the death of the insured. The contribution to the children's retirement plans are not deductible on the parent's return \begin{tabular}{|l|lr|} \hline Bruce's Salary -W2 & $ & 62,100.00 \\ Alice's Salary -W2 & $ & 58,000.00 \\ Interest & $ & 2,750.00 \\ \hline Adjusted Gross Income & $122,850.00 \\ \hline Less: Itemized Deductions (Note 1) & $ & (36,486.25) \\ \hline Total Taxable Income & $ & 86,363.75 \\ \hline Tax from tax table 2021 & $ & 10,500.00 \\ \hline Tax credits available (Note 2) & $ & (1,000.00) \\ Tax withholings and tax payments (Note 3) & $ & (9,800.00) \\ \hline Amount overdue (refund) & $ & (300.00) \\ \hline \end{tabular} Working Note: Note 1: Note 2: Son, John and Father, Sam, qualifies as a dependent. Cynthia cannot be claimed as a dependent because she is not under age 24 (so she is not a qualifying child) and has too much income (more than 4400) to be a qualifying relative. John does not qualify for the child tax credit since he is not under age 17. But both John and Bruce qualify for the dependent tax credit of $500 each 2500=$1,000.00 Note 3 : Prepayment and credits income tax withheld 2021 5300+4500$9,800.00 Note 4: Total deduction of taxes i.e., state, local, sales and property taxes should not exceed $10,000 and in here it is valued at (11,950). Therefore, it is limited to $10,000 Note 5 : The expenses for Alice's uniforms and laundry ($850+$566) and Bruce's professional journals and dues ( $400+$741) are employee business expenses. The TCJA of 2017 suspends the deduction for these expenses as miscellaneous itemized deductions from 2018 through 2025 Note 6: Neither the $400 given to a needy family via a crowdfunding site nor the $65 given to homeless individuals qualifies for a charitable contribution as the amounts were not given to qualified organizations. Note 7: The cost of the repairs to roof ($5,750), the utilities expense ($4,100) and the cost of the fire and theft insurance ($1,900) are all nondeductible expenses. The $1,600,000 life insurance proceeds is not taxable since it was paid out due to the death of the insured. The contribution to the children's retirement plans are not deductible on the parent's return