Form 1040 Problem:

Kenzie McKenzie is a research scientist in Tallahassee, Florida. Her husband Gary McKenzie stays home to take care of their two young children, Fred (age 10) and Susie (age 8). Kenzie's total wages for 2016 were $87,481 from which $8,418 of federal income tax was withheld.Florida does not have a state income tax.

They had $213 in interest income. Kenzie received dividends from Exxon in the amount of $564 and Gary received dividends from First National Bank in the amount of $524.The additionally received interest on a State of Florida bond in the amount of $42.They gave $5,418 to their church, $2000 to the Committee to Elect Sam Spade, and gave a bag of clothing valued at $421 to the Salvation Army (they have a receipt).

The McKenzie's paid $7,281 in medical insurance premiums (after tax dollars).They also paid $423 in doctor's visits and $431 for new glasses for everyone. Kenzie McKenzie is a big believer in vitamins and spent $362 at the GNC this year on supplements.

The McKenzie's mortgage payment is $1,326 per month.80% of their total mortgage payment is interest.2% is mortgage insurance.Kenzie receives child support from her ex-husband in the amount of $300 per month.

Gary likes to play the nickel slots.He went to Las Vegas for a trip with the guys.He won $2,291 on the slot machines.He didn't tell Kenzie, however, that it cost him in nickels $2,143 to win that money.

Prepare the McKenzie's 2016 Form 1040 tax return and any necessary schedules.Calculate their 2016 federal income tax and determine if they owe additional taxes or are receiving a refund.

Make any assumptions you need to finalize the return.