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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. Jessies 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 Lizzies 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 Jessies income is $837. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:

Income:
Joes salary $ 129,700
Jessies craft sales 18,460
Interest from certificate of deposit 1,710
Interest from Treasury bond funds 728
Interest from municipal bond funds 932
Expenditures:
Federal income tax withheld from Joes wages $ 13,700
State income tax withheld from Joes wages 6,520
Social Security tax withheld from Joes wages 7,506
Real estate taxes on residence 6,320
Automobile licenses (based on weight) 322
State sales tax paid 1,210
Home mortgage interest 16,600
Interest on Masterdebt credit card 2,420
Medical expenses (unreimbursed) 1,750
Joes employee expenses (unreimbursed) 2,520
Cost of Jessies craft supplies 4,920
Postage for mailing crafts 151
Travel and lodging for craft shows 2,290
Self-employment tax on Jessies craft income 1,674
College tuition paid for Lizzie 5,900
Interest on loans to pay Lizzies tuition 3,320
Lizzies room and board at college 12,740
Cash contributions to the Red Cross 555

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 2021 tax rules regardless of year on form.)

Joes address is 19010 N.W. 135th Street, Miami, FL 33054.

Social security numbers:

Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123

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