Question
In 2016, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is
In 2016, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1978), and Shannons is 412-34-5671 (date of birth 11/3/1980). John and Shannon had qualifying health care coverage at all times during the tax year.
Johns W-2 contained the following information:
Wages (box 1) | = | $ | 66,346.74 |
Federal W/H (box 2) | = | $ | 6,583.85 |
Social security wages (box 3) | = | $ | 66,346.74 |
Social security W/H (box 4) | = | $ | 4,113.50 |
Medicare wages (box 5) | = | $ | 66,346.74 |
Medicare W/H (box 6) | = | $ | 962.03 |
Shannon did not work for the year due to her medical condition but did receive unemployment compensation of $2,711 for the year with no federal withholding. In the same year, they had the following medical costs:
Shannons prescribed diabetes medication | $ | 2,150 | |
Shannons hospital charges | 8,350 | ||
Shannons regular physician visits | 835 | ||
Shannons eye doctor | 75 | ||
Shannons diabetes blood testing supplies | 185 | ||
Insurance reimbursements | 1,910 | ||
In addition, they had the following other expenses:
State income taxes | $ | 2,950 | |
Real estate taxes | 1,170 | ||
Car loan interest | 500 | ||
Personal property taxes | 265 | ||
Cash charitable contributions | 635 | ||
(made ratably throughout the year to their church) | |||
Mortgage interest expense | 7,970 | ||
Union dues for John | 575 | ||
Tax preparation fees | 175 | ||
Prepare a Form 1040 and Schedule A for the O'Banions using any appropriate worksheets. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers.)
Use the appropriate Tax Tables.
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