Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is a list of information for Peter and Amy Jones for the current tax year. Peter and Amy are married and have 3 children,

Following is a list of information for Peter and Amy Jones for the current tax year. Peter and Amy are married and have 3 children, Aubrynne, Bryson, and Caden. They live at 100 Main Street, Anytown, USA 00000. Peter is a lawyer working for a Native American law firm. Amy works part-time in a genetic research lab. The Jones' Social Security numbers and ages are as follows:

image text in transcribedimage text in transcribed

Age Name Peter Amy Aubrynne Bryson Caden S.S. No. 111-11-1111 222-22-2222 333-33-3333 444-44-4444 555-55-5555 Receipts Peter's salary Amy's salary Interest income on municipal bonds Interest income on certificate of deposit (Universal Savings) Dividends on GM stock $70,000 32,000 2,400 3,100 1,600 Disbursements Eyeglasses and exam for Aubrynne $ 600 Orthodontic work for Bryson to correct a congenital defect 2,500 Medical insurance premiums, after-tax basis 1,800 Withholding for state income taxes 7,200 Withholding for federal income taxes 16,000 State income taxes paid with last year's tax return 500 (paid when the return was filed in the current year) Property taxes on home 1,100 Property taxes on automobile 300 Interest on home 9,700 Interest on credit cards 200 Cash contribution to church 5,900 In addition to the above, on September 17, Peter and Amy donate some Beta Trader, Inc. stock to Lakeville Community College. Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $700. Peter and Amy had purchased the stock on November 7, 2004 for $300. Compute Peter and Amy's income tax liability for 2018 using Form 1040, Schedules A and B, and Form 8283, if necessary. Age Name Peter Amy Aubrynne Bryson Caden S.S. No. 111-11-1111 222-22-2222 333-33-3333 444-44-4444 555-55-5555 Receipts Peter's salary Amy's salary Interest income on municipal bonds Interest income on certificate of deposit (Universal Savings) Dividends on GM stock $70,000 32,000 2,400 3,100 1,600 Disbursements Eyeglasses and exam for Aubrynne $ 600 Orthodontic work for Bryson to correct a congenital defect 2,500 Medical insurance premiums, after-tax basis 1,800 Withholding for state income taxes 7,200 Withholding for federal income taxes 16,000 State income taxes paid with last year's tax return 500 (paid when the return was filed in the current year) Property taxes on home 1,100 Property taxes on automobile 300 Interest on home 9,700 Interest on credit cards 200 Cash contribution to church 5,900 In addition to the above, on September 17, Peter and Amy donate some Beta Trader, Inc. stock to Lakeville Community College. Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $700. Peter and Amy had purchased the stock on November 7, 2004 for $300. Compute Peter and Amy's income tax liability for 2018 using Form 1040, Schedules A and B, and Form 8283, if necessary

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions