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Please help!! eChapter Chapter Homew C This is The Questi le Free Homework [The following information applies to the questions displayed below) Joe and Jessie

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eChapter Chapter Homew C This is The Questi le Free Homework [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 marriedjoint. Based on their estimates, determine Joe and Jessie's AGI and taxable income for the year and complete pages 1 and 2 of Form 1040 (through taxable income line 43) and Schedule A. Assume that the employer portion of the self-employment tax on Jessie's income is $808. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Joe's salary 119.100 Jessie's craft sales 18,400 Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds 920 Expenditures Federal income tax withheld from Joe's wages 13,700 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 wel State sales tax paid 1,150 Home mortgage interest 14,000 on M asterdebt credit card 2,300 Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) 2,400 Cost of Jessie's craft supplies 4,260 Postage for malling crafts Travel and lodging for craft shows Meals during craft shows Self-employment tax on Jessie's craft income College tuition pald for Lizzie Interest on loans to pay Uzzie's tuition Lizzie's room and board at college 12,620 Cash contributions to Red Cross

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