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 $836. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joes salary $ 129,600 Jessies craft sales 18,450 Interest from certificate of deposit 1,700 Interest from Treasury bond funds 726 Interest from municipal bond funds 930 Expenditures: Federal income tax withheld from Joes wages $ 13,700 State income tax withheld from Joes wages 6,500 Social Security tax withheld from Joes wages 7,502 Real estate taxes on residence 6,300 Automobile licenses (based on weight) 320 State sales tax paid 1,200 Home mortgage interest 16,500 Interest on Masterdebt credit card 2,400 Medical expenses (unreimbursed) 1,740 Joes employee expenses (unreimbursed) 2,500 Cost of Jessies craft supplies 4,810 Postage for mailing crafts 150 Travel and lodging for craft shows 2,280 Self-employment tax on Jessies craft income 1,672 College tuition paid for Lizzie 5,880 Interest on loans to pay Lizzies tuition 3,300 Lizzies room and board at college 12,720 Cash contributions to the Red Cross 550

Required information Comprehensive Problem 6-63 (LO 6-1, LO 6-2, LO 6-3) (Algo) [The following information applies to the questions displayed below.] 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 $836. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: 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.) Comprehensive Problem 6-63 Part-b (Algo) b. Complete page 1 of Form 1040 (through taxable Income, Ine 15), Schedule 1, and Schedule A. (Round your Intermedlate computatlons to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financlal Information, (e.g. Names, Addresses, soclal securlty numbers) EXACTLY as they appear In any glven Information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135 th Street, MlamI, FL 33054. Soclal security numbers: Form 1040 for a Head of household with one dependent. Form 1040 Page 1. Form Department of the Treasury- 1040 Internal Revenue Service (gg) U.S. Individual IRS Use Only-Do not write or staple in this space. Comprehensive Problem 6-63 Part-b (Algo) b. Complete page 1 of Form 1040 (through taxable Income, Ine 15), Schedule 1, and Schedule A. (Round your intermedlate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial Information, (e.g. Names, Addresses, soclal security numbers) EXACTLY as they appear in any given Information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135th Street, MlamI, FL 33054. Soclal security numbers: Form 1040 for a Head of household with one dependent. Comprehensive Problem 6.63 Part-b (Algo) Joe's address sis 190010 N.w Form 1040 for a Head of household with one dependent