entials of Federal Income Taxation CUMULATIVE PROBLEM (CHAPTERS 1-6) Use the following information to prepare the joint income tax return of Frank and Sandra Anderson Use Form 1040, Schedule 1 Schedule 3. Schedule A, and Form 2441. All parties sign and date the return on April 1,2021. This problem is suitable for manual preparation or computer software application Frank A. (SSN 811-26-3717) and Sandra K. (SSN 820-47-9231) Anderson (ages 48 and 51. respectively) reside at 2121 Century Avenue, Middleton, CA 92657, with their three children whom they fully support: Mandy (age 9, SSN 998-21-5246). Charles (age 11. SSN 998-21 5247), and Carol (age 14. SSN 998-21-1827). The Andersons file a joint return, and neither elects to have 53 go to the Presidential election campaign fund. Frank is employed as a customer service representative Sandra is employed as a computer operator Details of their salaries and withholdings, are as follows: Finder Sarial Medicare Gm State In Income Tax Shuniy Tax Tax Wages Tiex Webheld Wishbold Withhold Withheld Frank $66,500 $4.792 $6.700 $4,123 $964 Sandra 40.343 3.087 2.980 2.501 585 Frank employer provides him with full family health care coverage as a tax-free employee benefit Part of Frank's compensation package also includes group-term life insurance equal to 75% of his annual salary. The cost to the company for the premium was $240. In August, Sandra earned $400 of interest when she cashed in a certificate of deposit from State Bank. The Middleton Farmers Bank credited $300 of interest to the Andersons joint savings account during the year. The Andersons overpaid their 2019 state income taxes by $142. They received their refund in June. The Andersons itemized deductions exceeded the standard deduction by $2,300 last year. Cancelled checks, receipts, and paid bills support the following expenditures: Odlo T. Miller, M.D. (not covered by Insurance) $ 818 Qualified stop smoking program for Sandra 175 Alex B. Kramer, D. V.M. (treatment of Fries, the Andersons' dog) 168 Life insurance premiums on Frank's life (Sandra is the beneficiary) 1,200 Kathryn R. Smith, dentist (not covered by insurance) 459 Weight loss program for Frank (cosmetic purposes) ( 180 Martin R. Jones, optometrist (not covered by insurance) 50 Eyeglasses for Mandy (not covered by insurance) 175 Driver's license renewal for Sandra 32 Fishing license for Frank 12 Credit card interest 275 Home mortgage interest on the main home 15.690 Real estate taxes on the main home 6.851 Trash pickup fees 120 Home repairs and improvements 620 Homeowner's insurance 500 General sales taxes paid during the year 2.572 State excise taxes 98 Cash gift to First Unity Church (with receipt) 2.200 Value of Frank's time volunteered to the Girl Scouts 300 Political contributions 50 Bingo and lottery tickets 260 Rental for safe deposit box to store investment items 67 Legal fees paid for preparation of the Andersons personal wills 875 In addition, on April 24, 2020, the Andersons paid $600 to Homer P. Gill for preparation of their 2019 tax return. When Frank's father died on Christmas Day, Frank inherited his father's savings account. The account balance was $20,000. In March, Sandra's best friend. Nancy, moved to Sweden. Nancy's 17-year-old daughter. Inga, stayed with the Andersons for the rest of the year. Inga had a part-time job after school and earned $4,120. The Andersons provided over half of Inga's support. Since they both work outside the home, they are unable to be there when their children return home from school. This year the Andersons paid a neighbor, Gloria Dryden (SSN 992-31-4270), $4,100 to care for Mandy and Charles in her home after school hours and during the summer vacation period while the Andersons were at work. Gloria's address is 2132 Century Avenue, Middleton, CA 92657 During the year, Sandra received unemployment compensation of $6,000, Frank is covered by a qualified pension plan at work: Sandra is not. The Andersons are interested in contributing to their respective traditional IRAs the maximum that they can deduct on their 2019 tax return. Both contributions take place before April 15, 2021. entials of Federal Income Taxation CUMULATIVE PROBLEM (CHAPTERS 1-6) Use the following information to prepare the joint income tax return of Frank and Sandra Anderson Use Form 1040, Schedule 1 Schedule 3. Schedule A, and Form 2441. All parties sign and date the return on April 1,2021. This problem is suitable for manual preparation or computer software application Frank A. (SSN 811-26-3717) and Sandra K. (SSN 820-47-9231) Anderson (ages 48 and 51. respectively) reside at 2121 Century Avenue, Middleton, CA 92657, with their three children whom they fully support: Mandy (age 9, SSN 998-21-5246). Charles (age 11. SSN 998-21 5247), and Carol (age 14. SSN 998-21-1827). The Andersons file a joint return, and neither elects to have 53 go to the Presidential election campaign fund. Frank is employed as a customer service representative Sandra is employed as a computer operator Details of their salaries and withholdings, are as follows: Finder Sarial Medicare Gm State In Income Tax Shuniy Tax Tax Wages Tiex Webheld Wishbold Withhold Withheld Frank $66,500 $4.792 $6.700 $4,123 $964 Sandra 40.343 3.087 2.980 2.501 585 Frank employer provides him with full family health care coverage as a tax-free employee benefit Part of Frank's compensation package also includes group-term life insurance equal to 75% of his annual salary. The cost to the company for the premium was $240. In August, Sandra earned $400 of interest when she cashed in a certificate of deposit from State Bank. The Middleton Farmers Bank credited $300 of interest to the Andersons joint savings account during the year. The Andersons overpaid their 2019 state income taxes by $142. They received their refund in June. The Andersons itemized deductions exceeded the standard deduction by $2,300 last year. Cancelled checks, receipts, and paid bills support the following expenditures: Odlo T. Miller, M.D. (not covered by Insurance) $ 818 Qualified stop smoking program for Sandra 175 Alex B. Kramer, D. V.M. (treatment of Fries, the Andersons' dog) 168 Life insurance premiums on Frank's life (Sandra is the beneficiary) 1,200 Kathryn R. Smith, dentist (not covered by insurance) 459 Weight loss program for Frank (cosmetic purposes) ( 180 Martin R. Jones, optometrist (not covered by insurance) 50 Eyeglasses for Mandy (not covered by insurance) 175 Driver's license renewal for Sandra 32 Fishing license for Frank 12 Credit card interest 275 Home mortgage interest on the main home 15.690 Real estate taxes on the main home 6.851 Trash pickup fees 120 Home repairs and improvements 620 Homeowner's insurance 500 General sales taxes paid during the year 2.572 State excise taxes 98 Cash gift to First Unity Church (with receipt) 2.200 Value of Frank's time volunteered to the Girl Scouts 300 Political contributions 50 Bingo and lottery tickets 260 Rental for safe deposit box to store investment items 67 Legal fees paid for preparation of the Andersons personal wills 875 In addition, on April 24, 2020, the Andersons paid $600 to Homer P. Gill for preparation of their 2019 tax return. When Frank's father died on Christmas Day, Frank inherited his father's savings account. The account balance was $20,000. In March, Sandra's best friend. Nancy, moved to Sweden. Nancy's 17-year-old daughter. Inga, stayed with the Andersons for the rest of the year. Inga had a part-time job after school and earned $4,120. The Andersons provided over half of Inga's support. Since they both work outside the home, they are unable to be there when their children return home from school. This year the Andersons paid a neighbor, Gloria Dryden (SSN 992-31-4270), $4,100 to care for Mandy and Charles in her home after school hours and during the summer vacation period while the Andersons were at work. Gloria's address is 2132 Century Avenue, Middleton, CA 92657 During the year, Sandra received unemployment compensation of $6,000, Frank is covered by a qualified pension plan at work: Sandra is not. The Andersons are interested in contributing to their respective traditional IRAs the maximum that they can deduct on their 2019 tax return. Both contributions take place before April 15, 2021