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Can I get help with how to fill the 1040, schedules A and B. Cumulative Problems Tax Computation Problem 41. Alice J. and Bruce M.
Can I get help with how to fill the 1040, schedules A and B.
Cumulative Problems Tax Computation Problem 41. Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively. Alice's birthday is September 21, 1971. and Bruce's is June 27 1970. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification Number 98-7654321D. Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (Employer Identification Decision Making The following information is shown on their Wage and Tax Statements (Fornm W-2) for 2018. Line Description Wages, tips, other compensation Federal income tax withheld $62,100 Social Security wages Social Security tax withheld Medicare wages and tips 58,000 62,100 58,000 62,100 Medicare tax withheld Massachusetts Massachusetts State wages, tips, etc State income tax withheld 58,000 62,100 3,100 17 2,950 CHAPTER 10 Deductions and Losses Certain itemized Deductions 10-39 The Byrds provide over half of the support of their two children, Cynthia (born January 25. 1994, Social Security number 123-45-6788) and John (born February 7, 1998, Social Security number 123-45-6786). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia carned $6,200 from a summer internship in 2018, and John earned $3,800 from a part-time job. During 2018, the Byrds provided 60% of the total support of Bruce's widower father, Sam Byrd (born March 6, 1942, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam's life, received life insurance proceeds of $1,600,000 on December 28 The Byrds had the following expenses relating to their personal residence during 2018: $5,000 Property taxes Qualified interest on home mortgage (acquisition indebtedness) Repairs to roof 8,700 5,750 4,100 Utilities 1,900 Fire and theft insurance The Byrds had the following medical expenses for 2018 4,500 Medical insurance premiums Doctor bill for Sam incurred in 2017 and not paid until 2018 Operation for Sam 7,600 8,500 Prescription medicines for Sam 900 Hospital expenses for Sam Reimbursement from insurance company, received in 2018 3,500 3,600 The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support Other relevant information follows: When they filedgheir 2017 state return in 2018, the Byrds paid additional state income tax of $900. . During 2018, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army All donations are supported by receipts, and the clothing is in very good condition Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65). In 2018, the Byrds received interest income of $2,750, which was reported on a Form 1099-INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 Employer Identification Number 98-7654322). . The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, PO. Box 1000, Lowell, MA 01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1 2018) was taken out by the Byrds on May 1, 2014 Alice's employer requires that all employces wear uniforms to work. During 2018, Alice spent $850 on new uniforms and $566 on laundry charges . Bruce paid $400 for an annual subscription to the Journal of tranchise Manage- ment and $741 for annual membership dues to his professional association. . Neither Alice's nor Bruce's employer reirmburses for employee expenses . The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. . All members of the Byrd family had health insurance coverage for all of 2018. . This year the Byrds gave each of their children $2.000, which was then deposited into their Roth IRAs. . Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. Part 1 Tax Compualion Compute net tax payable or tefund due for Alice and Bruce Ryrd for 2018. If they have overpaid, they want the amount to be refunded to them. If you use tax forms f orms 1040 and Schecdules A and B. for your computations, you will need Cumulative Problems Tax Computation Problem 41. Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively. Alice's birthday is September 21, 1971. and Bruce's is June 27 1970. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification Number 98-7654321D. Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (Employer Identification Decision Making The following information is shown on their Wage and Tax Statements (Fornm W-2) for 2018. Line Description Wages, tips, other compensation Federal income tax withheld $62,100 Social Security wages Social Security tax withheld Medicare wages and tips 58,000 62,100 58,000 62,100 Medicare tax withheld Massachusetts Massachusetts State wages, tips, etc State income tax withheld 58,000 62,100 3,100 17 2,950 CHAPTER 10 Deductions and Losses Certain itemized Deductions 10-39 The Byrds provide over half of the support of their two children, Cynthia (born January 25. 1994, Social Security number 123-45-6788) and John (born February 7, 1998, Social Security number 123-45-6786). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia carned $6,200 from a summer internship in 2018, and John earned $3,800 from a part-time job. During 2018, the Byrds provided 60% of the total support of Bruce's widower father, Sam Byrd (born March 6, 1942, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam's life, received life insurance proceeds of $1,600,000 on December 28 The Byrds had the following expenses relating to their personal residence during 2018: $5,000 Property taxes Qualified interest on home mortgage (acquisition indebtedness) Repairs to roof 8,700 5,750 4,100 Utilities 1,900 Fire and theft insurance The Byrds had the following medical expenses for 2018 4,500 Medical insurance premiums Doctor bill for Sam incurred in 2017 and not paid until 2018 Operation for Sam 7,600 8,500 Prescription medicines for Sam 900 Hospital expenses for Sam Reimbursement from insurance company, received in 2018 3,500 3,600 The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support Other relevant information follows: When they filedgheir 2017 state return in 2018, the Byrds paid additional state income tax of $900. . During 2018, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army All donations are supported by receipts, and the clothing is in very good condition Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65). In 2018, the Byrds received interest income of $2,750, which was reported on a Form 1099-INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 Employer Identification Number 98-7654322). . The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, PO. Box 1000, Lowell, MA 01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1 2018) was taken out by the Byrds on May 1, 2014 Alice's employer requires that all employces wear uniforms to work. During 2018, Alice spent $850 on new uniforms and $566 on laundry charges . Bruce paid $400 for an annual subscription to the Journal of tranchise Manage- ment and $741 for annual membership dues to his professional association. . Neither Alice's nor Bruce's employer reirmburses for employee expenses . The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. . All members of the Byrd family had health insurance coverage for all of 2018. . This year the Byrds gave each of their children $2.000, which was then deposited into their Roth IRAs. . Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. Part 1 Tax Compualion Compute net tax payable or tefund due for Alice and Bruce Ryrd for 2018. If they have overpaid, they want the amount to be refunded to them. If you use tax forms f orms 1040 and Schecdules A and B. for your computations, you will needStep by Step Solution
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