Expenditures Eye exam and eyeglasses for Aubrynne 600 Orthodontic work to correct Bryson's congenital defect 2,500 Medical insurance premiums (paid on an after tax basis) 1,800 State withholding for income tax 8,800 Federal withholding for income tax 16,000 State income taxes paid with last year's return 500 Property tax on condo 1,100 Ad valorem Property tax on automobile 300 Home mortgage interest 10,200 Interest on credit cards 200 Cash contribution to Oregon Meditation center 3,900 Cash contribution to a senator's campaign 1,500 Charitable donation of stock On September 17, Kevin and Jim donated Beta Trade Inc. stock to Portland State University Accounting Scholarship Fund. Beta Trader, Inc. is publicly traded. Kevin and Jim had purchased the sock on November 7, 2003 for $300. On the date of donation, the fair market value of the contribution is $700. Miscellaneous The taxpayers did not have signature authority over a foreign bank account. The taxpayers did not receive a distribution from a foreign trust. You do not need to complete any state tax returns. Do not worry about Alternative Minimum Tax (AMT)