Question
Dave and Sally Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the
Dave and Sally 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, and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020.
Dave's Salary = $50,000
Federal income tax withheld = 4,000
Sally's Salary= 42,000
Federal income tax withheld = 5,000
Andy's 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 children= 175
interest on home mortgage= 12,800
interest on credit cars= 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 adds explanations so I can take good notes thank you**
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