Question
example a 2019 Form 1040, Schedule 1, Schedule 2, Schedule SE, and Forms 8814 (for Cindy and Bobby) using the information below. Mike and Carol
example a 2019 Form 1040, Schedule 1, Schedule 2, Schedule SE, and Forms 8814 (for Cindy and Bobby) using the information below.
Mike and Carol Brady are happily married and would like to file a joint tax return. Mike's social security number is 123-19-4091, and he is 45 years old. Carol's social security number is 234-56-8888, and she is 43 years old. They do not want $3 to go to the Presidential Election Campaign Fund. They had health insurance for the whole family for the entire year.
The Brady family lives at 123 Perfect Lane, Happiness, AK, 99723.
The Brady family supports Carol's mother (age 74), who lives in a nursing home in Florida.Carol's mom (Jill Taylor, SSN 345-67-6666) has no income.
Mike works as an architect, and his reported W-2 wages are $115,000. Carol works as an accountant, and her reported W-2 wages are $45,000.
Bobby (SSN 456-78-5555) and Cindy (567-89-4444), Mike and Carol's two youngest children, are 14 years old and still live at home. Mike and Carol provide all of their support. The children have no earned income, and their only unearned income is the Alaska PFD.
Mike, Carol, and their two children all received the PFD, which was $1,606 per person. The Bradys would like to file two Form 8814s to report their children's taxes on their return.
Carol used Alice's pie recipe at a local bake-off and won first place. She received a $900 cash prize.
The Brady family has $27,000 of itemized deductions.
Carol owns and actively manage an apartment building. She received the following amounts (net of all expenses):
o$14,000 rental income
o$2,000 of refundable security deposits
o$2,800 of nonrefundable pet deposits
o$3,500 of rent paid early for January of next year.
During the year, Mike did several consulting assignments, outside of his regular job. He received $47,000 net of all related expenses. No payroll or income taxes were withheld.
During the year the Brady's had $32,500 withheld from their W-2 wages for federal income taxes.
The Brady's have a QBI deduction on line 10 of $12,712.
The Brady's have a child tax credit on line 13a and b of $4,500.
If the Brady family owes tax, assume they do not owe a penalty. If the Brady family has overpaid, assume that they would like it to be refunded. Make up the bank information required.
Please use the chart/tables/phase-outs/etc. to calculate income tax for the Brady family. You may be required to find this information online.
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