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Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). Blakes gross salary from his corporate employer was $70,000, and
Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5).
- Blakes gross salary from his corporate employer was $70,000, and his Section 401(k) contribution was $6,300. Blakes company withheld $10,000 of income taxes for him throughout the year.
- Valeries salary from GuiTech, an S corporation, was $29,400.
- Valerie owns 16 percent of GuiTechs outstanding stock. Her pro rata share of GuiTechs ordinary business income was $13,790, her pro rata share of GuiTechs net loss from rental real estate was $8,100, and she received a $7,000 cash distribution from GuiTech. The $8,100 rental real estate loss is passive, but the entire loss is deductible (rental real estate exception: $25,000 [50% excess AGI over $100,000]). The ordinary income from GuiTech is qualified business income.
- Blake received a $15,000 cash gift from his grandmother.
- Valerie won $6,400 in the Maryland state lottery.
- The Meyers received a distribution from their investment in Pawnee Mutual Fund that consisted of a $712 qualifying dividend and a $3,020 long-term capital gain.
- Blake paid $12,000 alimony to a former spouse under a divorce agreement executed in 2011.
- The Meyers paid $17,200 home mortgage interest on acquisition debt and $2,780 property tax on their personal residence.
- The Meyers paid $7,000 state income tax and $4,200 state and local sales tax.
- Valerie contributed $1,945 to their church.
Assume the taxable year is 2022 and that the Meyers filed for an extension. Based on the above information, compute the Meyers 2022 federal income tax due/refund due on their joint return (ignore AMT). Complete pages 1 and 2 of Form 1040 for the Meyers. Include their penalty for late filing if applicable. Assume the return was filed on December 8, 2023. PLEASE include an actual 1040 that is filled out based off these parameters.
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