Question
Harry and Karla had the following information relating to their 2021 taxes: They have been married for 8 years. Harry wages were 26,000 and Karla
Harry and Karla had the following information relating to their 2021 taxes:
They have been married for 8 years.
Harry wages were 26,000 and Karla received 46,000
They had total interest income of $600 of which $50 was received from muni bonds.
They incurred/paid the during the year:
Karla paid alimony of $6,000 former spouse, Ted; They had the divorce in 2011 | |
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Medical expenses totaled $9,500; insurance reimbursed them for $1,200. | |
Charitable contributions of $5,800 to their church. | |
Contributions to traditional IRA: Harry $5,000 and Karla $4,000 | |
Mortgage interest on their residence of $12,000. | |
Property taxes on her residence of $5,800. | |
State income taxes withheld from their wages was $4,200 (Harry-$2,000; Karla $2,200)
They also have a restaurant managed by Harry; in 2016 total expenses were $14,500 and total revenue was $26,500 (schedule C).
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They filed their 2021 joint tax return. Answer the following:
What was their Adjusted Gross Income (AGI? (Line 11).
What is the amount of self-employment tax deductible on line 15, part II of Schedule 1?
What is the total of itemized deductions? (Schedule A, line 17 of 1040)
What will be the total amount on lines 24 and 33? (you need to factor in child tax credit and the dependent care credit also).
Good Luck
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