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Bob and Karen are married couple. They have three young children, all below age 10. Bob works as a janitor for a local company in

Bob and Karen are married couple. They have three young children, all below age 10.

  • Bob works as a janitor for a local company in the city. He earned salary income equal to $50,000.His employer withheld $6,300 in Federal Income Taxes and $2,800 in RI state income taxes. (You do not have to include a Form W-2 with your return).
  • When Bobis on the clock, he is not allowed to leave the premises for lunch or dinner. The company provides all security guards with free lunch or dinner. The value of meals provided to Bobfor the year totaled about $300/month. The meals qualify under IRC 119.
  • Karen works part-time as an office assistant for a company in the building where Bob works. She earned a salary equal to $22,000 for the year. This year she also was recognized for her great service and was given a bonus of $1,000. Her employer withheld $1,550 in Federal Income Taxes and $1,300 in RIstate income taxes. Other appropriate employment taxes were also withheld correctly.
  • Karenreceives a small amount of alimony each year from an ex-husband that she divorced prior to marrying Bob. The total received for the year is $2,400.
  • In addition to his income from his janitorial work, Bobfrequentlyworks as a bouncer at some clubs in the city. Bobis not a formal employee of any of the clubs, but rather worksas a freelance contractor. Bobreceived $18,500 in self-employment income from these jobs. His unreimbursed deductible expenses related to this income were supplies of $670, telephone costs of $300, advertising expense of $200, travel and transportation costs of $230, and union dues of $150.
  • The family received dividend income of $200 from stock they held in Company A, $178 from stock they held in Company B, and $600 from stock they held in Company C. The dividends were reported on Form 1099-Div as Ordinary and Qualified (you do not have to include Form 1099-Div).
  • The family received interest income from Bank of RI of $20.
  • The family received interest income from City of Providence bonds of $90.
  • Bob and Karenreceived a state tax refund during the year of $64. They did itemize last year and reported an amount for state taxes paid.
  • The family has the following deductible itemized deductions:
  • Unreimbursed Medical Expenses $13,700
  • Real Property Taxes on Home 4,950
  • Charitable contributions 2,750*
  • Qualified Home Mortgage Interest 6,850
  • State and local income taxes see amounts mentioned above for RI

withholding

*this is the total amount of various cash charitable contributions. The family can document all donations.

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