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 $844. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: 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) $ 130,400 18,530 1,780 742 946 $ 13,700 6,660 7,534 6,460 336 1,280 17,300 2,560 1,820 2,660 Cost of Jessie's craft supplies 5,690 158 Travel and lodging for craft shows 2,360 Self-employment tax on Jessie's craft income 1,688 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 Joe's employee expenses (unreimbursed) Postage for mailing crafts Comprehensive Problem 6-63 Part-a (Algo) a. Determine Joe and Jessie's AGI and taxable income for the year. (Round your intermediate calculations to the nearest whole dollar amount.) Joe and Jessie's AGI $ 152,398 Joe and Jessie's Taxable income 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 $844. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: 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) $ 130,400 18,530 1,780 742 946 $ 13,700 6,660 7,534 6,460 336 1,280 17,300 2,560 1,820 2,660 5,690 158 Travel and lodging for craft shows 2,360 Self-employment tax on Jessie's craft income 1,688 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 Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts 1040 PG 1 Schedule 1 Schedule A Form 1040 Schedule A. SCHEDULE A (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on Form 1040 or 1040-SR Itemized Deductions Go to www.irs.gov/ScheduleA for instructions and the latest information. Attach to Form 1040 or 1040-SR. Caution: If you are claiming a net qualified disaster loss on Form 4884, see the instructions for line 16. OMB No. 1545-0074 2020 Attachment Sequence No. 07 Your social security number Medical and Dental Expenses Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040 or 1040-SR, line 11 3 Multiply line 2 by 7.5% (0.075) 2 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount Interest You Paid Caution: Your mortgage interest deduction may be limited (see instruction). 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 4 8b c Points not reported to you on Form 1098. See instructions for special rules 8c d Mortgage insurance premiums (see instructions). e Add lines 8a through 8d. 8d 8e 9 Investment interest. Attach Form 4952 if required. See instructions 9 8a 5a 5b 5c 5d 5e 1 7 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines 8e and 9 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 11 Charity Caution: If you made a gift and got a benefit for it, see instructions. 13 Carryover from prior year 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 12 13 14 Add lines 11 through 13 14 Casualty and Theft Losses 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4884 and enter the amount from line 18 of that form. See instructions 15 Other Itemized 16 Other-from list in instructions. List type and amount Deductions 16 Total Itemized 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 12 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box Cat. No. 17145C Schedule A (Form 1040) 2020 For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education. < Schedule 1 Schedule A > one box. a child but not your dependent. Your first name and middle initial Last name If joint return, spouse's first name and middle initial Last name Home address (number and street). If you have a P.O. box, see instructions. Apt. no. City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Foreign country name Foreign province/state/county Foreign postal code At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Your social security number Spouse's social security number Presidential Election Campaign Check here if you, or your spouse i filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse Yes No Standard Deduction Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Dependents (see instructions): Were born before January 2, 1958 Are blind (2) Social security number Spouse: Was born before January 2, 1958 Is blind (3) Relationship to you (4) if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents If more than four dependents, see instructions and check here 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach Sch. B if required. 2a Tax-exempt interest 3a Qualified dividends 4a IRA distributions 5a Pensions and annuities 1 2a b Taxable interest 2b 3a b Ordinary dividends 3b 4a b Taxable amount 4b b Taxable amount 5b b Taxable amount 6b Standard Deduction for- Single or Married filing separately. Ba Social security benefits 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 9 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income $12,400 - Married filing 10 Adjustments to income: a From Schedule 1, line 22 jointly or Qualifying widow(er). $24,800 Head of household, $18,650 If you checked any box under Standard Deduction, see instructions. 10a b Charitable contributions if you take the standard deduction. See instructions 10b c Add lines 10a and 10b. These are your total adjustments to income 11 Subtract line 10c from line 9. This is your adjusted gross income 12 Standard deduction or itemized deductions (from Schedule A) 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 14 Add lines 12 and 13 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- Car Dizalaren Drive Ant and Danumek Daduation Ant Nation enn ennaesta instruatione + 7 8 g 10c 11 12 13 14 15 CM 11 Form 1040