Comprehensive Problem 6-1

David and Darlene Jasper have one child, Sam, who is 6 years old (birthdate July 1, 2011). The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David's Social Security number is 577-11-3311, Darlene's is 477-98-4731, and Sam's is 589-22-1142. David's birthdate is May 29, 1984 and Darlene's birthday is January 31, 1986. David and Darlene's earnings and withholdings for 2017 are:

David:	Earnings from Apple Company (office manager)	$26,250
	Federal income tax withheld	2,800
	State income tax withheld	1,050
Darlene:	Earnings from Rose Company (perfume tester)	$25,175
	Federal income tax withheld	2,650
	State income tax withheld	916

Their other income includes interest from Pine Tree Savings and Loan of $1,835. Other information and expenditures for 2017 are as follows:

Interest:	On home acquisition mortgage	$11,175
	Credit card	925
Taxes:	Property taxes on personal residence	1,300
	State income taxes paid in 2017 (for 2016)	315
Contribution (with written acknowledgement) to church		1,020
Medical insurance		675
Medical and dental expenses		5,785
Income tax return preparation fee paid in 2017		200
Actual general state sales tax for 2017		1,016
Payment of union dues		225

David and Darlene received a letter from Sam's daycare provider which contains information regarding child care expenses.

In 2017, David lost his job. David paid for one month of insurance out-of-pocket and then the family went without insurance for September through December 2017. They are not eligible for any exemptions from health care coverage.

David and Darlene received the following letter from Sam's daycare provider:

KIDDIECARE INC. 10250 Santa Monica Blvd. Los Angeles, CA 90067 EIN: 13-3345678

January 14, 2018

David and Darlene Jasper 4639 Honeysuckle Lane Los Angeles, CA 90248

Dear David and Darlene,

Thank you for your patronage of our day care center with your child, Sam Jasper, in 2017. This statement serves as a record of the cost of daycare services we provided during calendar year 2017:

Child	Amount	Dates of Service
Sam Jasper	$3,500.00	1/1/2017 - 08/25/2017

Sincerely,

/s/ Marcia Clarke

Marcia Clarke Director, KiddieCare Inc.

Required: Complete David and Darlene's Form 1040 Schedules A and B, Form 2441, Shared Responsibility Payment Worksheet and Flat Dollar Amount Worksheet.

Make realistic assumptions about any missing data.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter "0".

If required round any dollar amount to the nearest dollar (unless instructed otherwise on the tax form).

Assume alternative minimum tax is not a factor.