Question
Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer
Joe and Jessie are 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. Assume that the employer portion of the self-employment tax on Jessie's income is $737. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:
Income: | |
---|---|
Joe's salary | $ 135,400 |
Jessie's craft sales | 18,530 |
Interest from certificate of deposit | 1,780 |
Interest from Treasury bond funds | 742 |
Interest from municipal bond funds | 946 |
Expenditures: | |
Federal income tax withheld from Joe's wages | $ 13,700 |
State income tax withheld from Joe's wages | 6,660 |
Social Security tax withheld from Joe's wages | 7,534 |
Real estate taxes on residence | 6,460 |
Automobile licenses (based on weight) | 336 |
State sales tax paid | 1,280 |
Home mortgage interest | 17,300 |
Interest on Masterdebt credit card | 2,560 |
Medical expenses (unreimbursed) | 1,820 |
Joe's employee expenses (unreimbursed) | 2,660 |
Cost of Jessie's craft supplies | 5,580 |
Postage for mailing crafts | 158 |
Travel and lodging for craft shows | 2,360 |
Self-employment tax on Jessie's craft income | 1,474 |
College tuition paid for Lizzie | 6,040 |
Interest on loans to pay Lizzie's tuition | 3,460 |
Lizzie's room and board at college | 12,880 |
Cash contributions to the Red Cross | 590
|
a. Determine Joe and Jessie's AGI and taxable income for the year. | |||||
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b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A.
(Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2022 tax rules regardless of year on form.) Joe and Jessie does not wish to contribute to the Presidential Election Campaign fund or did not have any virtual currency transactions or interests.
Note: The last couple answers a received from this post were incorrect so I'm not sure if there's a special requirement for this question or not. If you could look at the other answers to this post first I would greatly appreciate it. I am desperate for help on this question. Thank you all for your time.
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