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Please help me calculate the total tax, the amount they want refunded, the amount they overpaid, and the amount they want applied to 2019 taxes.
Please help me calculate the total tax, the amount they want refunded, the amount they overpaid, and the amount they want applied to 2019 taxes. I have posted on Coursehero and the answers are not correct, so please do not copy/paste their work
Taxpayers' Facts. Please read this file carefully as it includes components of income and expenses necessary to complete the tax return. You will need to determine which components affect the tax return and how much of each component, if any, should be reported on the tax return: Jared and Ashley have come to you for help filing their 2018 tax return. They are married on December 31, 2018 and are both age 40. They live with their three qualifying children, Nick, Betty, and Roger, who were 12, 14, and 17 years old, respectively, at the end of 2018. They have made the following requests: . They wish to file a joint tax return. If they overpaid their taxes this year, they would like to receive half as a refund and have half applied to next year's federal tax return (hint: this is a commonly missed item on the quiz). Jared and Ashley have the following income items during 2018: . Jared's wages of $50,000 Jared's unemployment compensation of $5,000 Ashley's wages of $60,000 Interest from a city of Chicago bond of $2,000 Interest from a corporate bond of $3,000 Ordinary dividends of $2,000 . . Gift from Jared's father of a new computer that cost $3,000 A $3,000 refund from the State of Illinois for income taxes paid in 2017 . Jared and Ashley incurred the following expenses/losses during 2018: . . Contributions of $5,500 to each of Jared and Ashley's traditional IRAs, i.e., $11,000 total (they are not covered by any other qualified retirement plans) Qualified medical expenses of $9,000 Personal credit card interest expense of $8,000 Charitable contributions of $4,000 Ten $25 parking tickets totaling $250 Mortgage interest on primary residence of $8,000 (mortgage is $200,000) Property taxes on the primary residence of $6,500 Illinois state and local income taxes paid of $5,500 Federal tax withholding on Jared and Ashley's W-2s of $10,000 . They also provide you with the following information about their prior year return: On their prior year federal tax return, they claimed itemized deductions. Jared and Ashley elected to have $139 of their 2017 tax refund applied to 2018Step by Step Solution
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