for the following taxpayers for 2019. Make assumptions regarding any information not given.

Taxpayer Name:       Jack P. Jensen                                 Spouse:        Jill E. Jensen

Taxpayer DOB:        May 17, 1975                                        September 3, 1977

Occupation:             Lawn Care Specialist                               Administrative Assistant

Address: 4117 Evergreen, San Diego, CA 92540   

         

Jack and Jill are married and wish to file a joint return. They are not blind or disabled. No one may claim them as dependents. Neither is a student. They are U.S. citizens and they had health insurance the entire year provided by Jack’s employer.

Jack and Jill have two Form’s W-2. Jill received $230 for serving on a jury. Jill also paid $195 in student loan interest to Sallie Mae. Jack enjoys playing the slots but almost never wins. In the current year, however, he hit a penny jackpot worth $150 at the local Indian casino. (Assume up to $150 of gambling losses)

Jack and Jill have one child, a daughter: Nikki Jensen, DOB: 10/10/2009. Nikki lived with her parents all year long and does not have any income. She is not disabled and is not married. She is a U.S. citizen.

The Jensen’s would like to itemize their deductions using the following information:

2018 State Balance Due                $      261                          Paid on March 11, 2019

Real Estate Taxes                             3,325                         

Doctor and Dentist Fees                     3,485                         

Prescription Medications                     1,200

Glasses                                              425

Medical Mileage                           960 miles x .17 = 163.20

Jill’s W-2:

          Wages:                   24,291

Fed w/h                  2,516

Social security          1,020

Medicare                 352

State w/h                729

Jack’s W-2

          Wages:                   85,000

Fed w/h                  8,500

Social security          5,483

Medicare                 1,020

State w/h                4,200

Jack and Jill have the following stock transactions in 2019:

Pepsi            Purchased 6/1/08 25,000     Sold 7/5/19 32,000          LTG 7000

Coke             Purchased 3/1/19 10,000     Sold 10/1/19 7,000            STL 3000

Home Depot   Purchased 2/9/19 7,000      Sold 9/2/19    15,000          STG 8000

Lowe’s          Purchased 5/5/15 20,000     Sold 3/7/19    7,000           LTL 13000

Net LTL 6,000

Net STG 5,000

Overall LTL 1,000

The Jensen’s have the following documents:

1. 1099-INT (Interest income) from Bank of America

Box 1 $248.39

2. 1098- INT   (Interest paid) from Wells Fargo

Box 1 $4,783.23 for first mortgage

3. 1098-INT   (Interest paid) from Bank of America

Box 1 $2,839.52 for second mortgage

Compute the following:

Total includable gross income:

Adjustments for AGI:    

AGI:      

Itemized Deductions:

Which should they choose (itemized or standard):

Taxable income:              

Tax:                       

Credits:               

Tax Due/Refund: