Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John and Mary Jane sanders are married, filling jointly. their address is 204 shoe lane, blacksburg VA 24601. they are expecting their first child in

John and Mary Jane sanders are married, filling jointly. their address is 204 shoe lane, blacksburg VA 24601. they are expecting their first child in early 2011. john's salary in 2010 was $90000, from which $20,200, of Federal income tax were withheld. the appropriate amount of FICA tax was withheld for John and for Mary Jane: for John, Social security tax of 5580 and medicare tax of 1305; for Mary Jane, social security tax of 3100 and medicare tax of 725. John's social security number is 111-11-1111, and Mary Jane's social security number is 123-45-6789. John and Mary are both covered by their employer's medical insurance policies with 3/4 of the premiums being paid by the employers. the total premiums were 6000 for John and 4200 for Mary Jane. Mary received medical benefits of 6200 under the plan. John was not ill during 2010 John makes child support payments of $12000 for his son, Rod, who lives with June, John's former spouse, except for two months in the summer when he visits John and Mary. at the time of the divorce, John worked for a Fortune 500 company and received a salary of $250,000. as a result of corporate downsizing, he lost his job. Mary Jane's father lived with them until his death in November. his only sources of income were salary of $1900 unemployment compensation benefits of $3500 and social security benefits of $3200 of this amount he deposited $4800 in a savings account. the remainder of his support of $9000, which included funeral expenses of $5100, was provided by John and Mary. Other income received by the Sanders was as follows: Interest on certificate of deposit $3500 share of S corporation taxable income (distributions from S corporation to Mary Jane were $600) $1200 Award received by Mary Jane from employer for outstanding suggestion for cutting costs $1500 John has always wanted to operate his own business. In October 2010, he incurred expenses of 10000in in investigating the establishment of a retail computer franchise. with the birth of their expected next year, however, he decides for forgo self employment for a couple of years. John and Mary made charitable contributions of $4000 during the year and paid and additional 1200 in state income taxes in 2010 upon filling their 2009 state income tax return. their deductible home mortgage interest was $7500 and their property taxes came to $4500. they paid sales taxes of $1700 for which they have receipts. Tax computation. calculate John and Mary Jane's tax (or refund) due for 2010 you can use any tax software to computer it, but H&R block at home software will be the best

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk-Based Internal Audit

Authors: Jason Lee Mefford

1st Edition

1631922629, 9781631922626

More Books

Students also viewed these Accounting questions

Question

Were any of the authors students?

Answered: 1 week ago

Question

6. What information processes operate in communication situations?

Answered: 1 week ago

Question

3. How can we use information and communication to generate trust?

Answered: 1 week ago