Imagine that you are preparing taxes for a local tax service provider. A married couple named Judy and Walter Townson has come to you to seeking assistance with their federal income taxes. During your meeting with the Townsons, you gather the following information:

-they are both 55 years of age -They have two daughters and one son. One daughter (25) is married with children. One daughter (20) is living at home and attending college. Their son (16) is a junior in high school. -They are currently paying for their college-student daughter to attend school full time. - Judy is employed as a teacher and makes $60,000 a year. She used $500 of her personal funds to purchase books and other supplies for her classroom. -Walter is employed as a CPA and makes $100,000 a year - They provided you a 1099-INT which reported $4,500 in the interest of which $500 was saving bonds interest - They offered you a 1099-DV which said $300 in dividends -They received a state tax refund last year of $385 - They provided you a list of expenses including: doctors bill $800, Prescriptions $400, New glasses $2000, dental bills $560, braces $5000, Property taxes for their two cars of $800, which included $50 in decal fees, real estate taxes $4500, mortgage interest $12000, Gifts to charities $1,000, GoFunMe contribution to local families in need $100, and Taxes preparation fees for last years taxes $400.

Consider the most beneficial way for Judy and Walter to file their federal income tax return. Prepare a brief written summary that addresses the following:

-Estimated taxable income for Judy and Walter (please show compilations) -Summary of tax return, including andy suggestions or tax planning consideration - Explain how you determined the filing status, dependents, and use of standard/ itemized deduction

The specific course learning outcomes associated with this assignment are:

1. Review tax authories and sources of tax law 2. Assess the concepts of gross income and strategies to minimize gross income 3. Examine deductions from income, limitations on those deductions, and strategies for maximizing deductions.