Question
Clive and Bonnie Muster are preparing their tax form 1040A for 2017 as a married couple filing jointly. Clive is a contractor and earned $65,000
Clive and Bonnie Muster are preparing their tax form 1040A for 2017 as a married couple filing jointly. Clive is a contractor and earned $65,000 and Bonnie who works part-time in a store earned $15,000 in 2017. They have one child, Sandra who is 4 years old. Clive and Bonnie are saving money for a down payment to buy a house in a couple of years. Because the Muster's goal is to purchase a home, Clive has decided not to participate in the retirement plan his employer offers. They received their Form 1099-INT from their bank stating that they earned $420 in interest.
Clive's W-2 indicates that $6,000 was withheld in federal taxes and Bonnie had $850 in federal taxes withheld. The couple also spent $1,200 in childcare expenses although Bonnie provided the bulk of childcare as she works part-time.
Students must fill out any other descriptive information needed to complete the form including address, social security numbers, signatures, tax preparer's information and any other relevant information. The goal is to determine the total tax for the Muster family using the tax table in Form 1040A Instructions and then calculate whether they will get a refund or whether they owe money to the IRS.
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