Derrick and Ani Jones are married taxpayers, filing jointly and have a son named Jackson. They Live at 474 Rustic Drive, Spokane Wa 99201. Derrick works as a director of information systems at Washington Community College District (WCCD). Ani is a stay-at-home mom. They're SSN are Derek, 412 - 34 - 5 6 7 0; Ani 412-35-5671; and jackson, 412-34-5672. their birth dates are as follows: Derrick, June 7, 1977; Ani, March 20, 1978; and Jackson, October 10, 2010. the Joneses on their home and paid $15,000 in mortgage interest during the year to Chase bank and property taxes of $3,200. Assume they have no other deductible expenses.

The form W-2 Derek received from wccd contain the following information: Wages (box 1) = $79,002.50 Federal W/H (box 2 ) = $8,000.14 Social Security Wages (box 3) = $79,002.50 Social Security W/H (box 4) = $4,898.16 Medicare wages (box 5) = $79,002.50 Medicare W/H (box 6) = $1,145.54

in addition, the Joneses and a small 4 unit rental at 12345 rainbow way, sultan, wa 98294. the rental was purchased and placed in service on July 1, 2004, and was rented for the entire year. The following income and expense information relates to the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations.

Rental income. = $24,000 Real estate taxes = $2,000 State sales taxes = $1,349 Utilities = $1,500 Mortgage interest = $3,800 Depreciation = $7,200 Repairs and maintenance = $1,300

prepare the Joneses federal tax return for 2016. Use form 1040, schedule a, Schedule E, and any other appropriate schedules. Assume they do not qualify for any credits other than the Child Care Credit. The taxpayers had qualifying Health Care coverage at all times during the tax year. For any missing information, make reasonable assumptions.