Homework Assignment 2 (10 points) Due at the beginning of class on February 24, 2020 This is an INDIVIDUAL Assignment. You are not to work with anyone on it. You MUST complete this by hand. Joe and Jessie arg married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220.000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Based on their estimates, determine Joe and Jessie's AGI and taxable income, (including Jessie's business income - you do not have to complete Schedule C) for the year and complete page 1 of Form 1040, Schedule 1 and Schedule A. Assume that the employer portion of the self-employment tax on Jessie's income is $808, Joe and Jessie have summarized the income and expenses they expect to report this year as follows: $ 124,100 18,400 1,650 Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Meals during craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to Red Cross Cos's empi penses (uht credite $ 13,700 6,400 7,482 6,200 310 1,150 14.000 2.300 1,690 2,400 4.260 145 2,230 670 1,615 5,780 12,620 525 3.200 Homework Assignment 2 (10 points) Due at the beginning of class on February 24, 2020 This is an INDIVIDUAL Assignment. You are not to work with anyone on it. You MUST complete this by hand. Joe and Jessie arg married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220.000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Based on their estimates, determine Joe and Jessie's AGI and taxable income, (including Jessie's business income - you do not have to complete Schedule C) for the year and complete page 1 of Form 1040, Schedule 1 and Schedule A. Assume that the employer portion of the self-employment tax on Jessie's income is $808, Joe and Jessie have summarized the income and expenses they expect to report this year as follows: $ 124,100 18,400 1,650 Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Meals during craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to Red Cross Cos's empi penses (uht credite $ 13,700 6,400 7,482 6,200 310 1,150 14.000 2.300 1,690 2,400 4.260 145 2,230 670 1,615 5,780 12,620 525 3.200
