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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. 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 $ and a personal loan to pay for Lizzie's college
expenses balance of $
Neither Joe nor Jessie is blind or over age and they plan to file as married joint. Assume that the employer portion of
the selfemployment tax on Jessie's income is $ Joe and Jessie have summarized the income and expenses they
expect to report this year as follows:
Please specify where each of the following expenditures should be included in forms Shedule and Schedule A Please include the amounts that should be included as well.
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
Joe's employee expenses unreimbursed
Cost of Jessie's craft supplies
Postage for mailing crafts
Travel and lodging for craft shows
Selfemployment tax on Jessie's craft income
College tuition paid for Lizzie
Interest on loans to pay Lizzie's tuition
Lizzie's room and board at college
Cash contributions to the Red Cross
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