Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Form 1040 needed John and Lisa Baker's social security numbers are 111-11-1111 and 222-22-2222, respectively. John and Lisa Baker is filing under the married filing

Form 1040 needed

  • John and Lisa Baker's social security numbers are 111-11-1111 and 222-22-2222, respectively.
  • John and Lisa Baker is filing under the married filing jointly status.
  • John and Lisa Baker gave 2 dependents: Daughter Mary Baker (age 9) and son Jim Baker (age 5). Mary's and Jim's social security numbers are 333-33-3333 and 444-44-4444, respectively.
  • John and Lisa Baker each want $3 to go to the Presidential Election Campaign fund.
  • John works as a office manager and has one 2017 Form W-2 from his employer that indicates $75,000 in federal wages and $18,000 in federal income taxes withheld.
  • Lisa is self-employed as an business consultant and reports the below income and expenses onSchedule C. They also need to file aSchedule SEto report self-employment taxes on the net profit from the Schedule C (note that one-half of self-employment taxes on Schedule SE may be deducted on the front of the Form 1040).
  • Gross receipts: $100,000
  • Office rent expense: $6,000
  • Supplies expense: $2,500
  • Advertising expense: $2,000
  • Utilities expense: $5,000
  • Travel expense: $4,000
  • Miscellaneous expense: $500
  • Mary uses her personal vehicle for business. She recorded 10,000 business miles driven in 2017 and deducts the standard mileage rate (her total personal mileage driven was 15,000 in 2017)
  • John and Lisa received Forms 1099-INT and reported interest income onSchedule B.
  • Chase Bank: $600
  • JP Morgan: $500
  • John and Lisa received Forms 1099-DIV and reports the below ordinary dividends on aSchedule B.
  • Microsoft: $1,200
  • Prudential: $1,100
  • John and Lisa received a Form 1099-B to report the 7/5/17 sale of ABC Corp. stock for $12,000. They purchased this stock on 12/12/16 for a cost of $7,500. They report this sale onSchedule D.
  • John and Lisa claim the standard deduction for their filing status of married joint.
  • John and Lisa claim a total of 4 exemptions for John, Lisa, Mary, and Jim.
  • The family has full medical coverage through John's employer for 2017.
  • In addition to the $18,000 in federal income tax withheld from John's salary, John and Lisa paid $20,000 in federal taxes with their 2017 filing extension Form 4868.
  • The Bakers would like any tax overpayment to be directly deposited into their checking account (routing #123456789 and account # 24681357331)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

understand the selection bias in contemporary work psychology;

Answered: 1 week ago

Question

A greater tendency to create winwin situations.

Answered: 1 week ago

Question

Improving creative problem-solving ability.

Answered: 1 week ago