Question
Comprehensive Problem. Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify
Comprehensive Problem. Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit (Ch. 9), and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020.
Andys salary | $50,000 |
Federal income tax withheld | 4,000 |
Marcias salary | 42,000 |
Federal income tax withheld | 5,000 |
Andys contribution to an IRA (assume IRA is deductible for AGI) | 2,000 |
Dividends received from domestic corporations | 950 |
Medical expenses for doctors and hospitals | 8,200 |
Premiums for health insurance | 2,600 |
Prescription drugs and medicines | 800 |
Eyeglasses for one of the children | 175 |
Interest on home mortgage | 12,800 |
Interest on credit cards | 300 |
Real property taxes on residence | 6,300 |
State income taxes | 5,800 |
Fee for preparation of tax returns | 125 |
Union dues and subscriptions | 480 |
Please show all work involved:
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