Form 1040. William A. Gregg, a high school educator, and Mary W. Gregg, a microbiologist, are married and file a joint income tax return for 2020. Neither William nor Mary is over 50 years old, and both have excellent sight. They provide the sole support of their three children: Barry, Kimberly, and Rachel (all under age 17). The following information is from their records for 2020:

Salaries and wages, William. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$54,000

Federal income tax withheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,000

Salaries and wages, Mary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$60,000

Federal income tax withheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000

Interest incomeHome Savings and Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$690

Interest incomeCity Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$220

Tax-exempt interest incomeState of Texas Bonds . . . . . . . . . . . . . . . . . . . . . .$1,400

Itemized deductions as follows:

Hospitalization insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$320

Unreimbursed fees of doctors, hospitals, etc. . . . . . . . . . . . . . . . . . . . . . . . .$740

Unreimbursed prescription drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$310

Real estate taxes on residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,300

State income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,700

State sales taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$720

Interest paid on original home mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . .$18,430

Charitable contributionFaith Church. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000

Charitable contributionState University. . . . . . . . . . . . . . . . . . . . . . . . . . . .$200

Quarterly estimated federal taxes paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,500

Calculate the 2020 Federal income tax and the tax due (or refund) for the Greggs assuming they file a joint return. Form 1040, along with Schedules A and B, may be completed. Supply fictitious information for the address and Social Security numbers. (Note: Use 2020 tax forms since the 2021 forms may not be available.)

Fill out the tax forms - Use 2020 tax forms and numbers (standard deduction, etc)