Please help me solve this tax problem.
File Home Insert Draw Design Layout References Mailings Review View Help Design Layout Search Share Comments Repairs to roof 5,750 Utilities 4,100 Fire and theft insurance 1,900 Tax Problem 3 Barbara E. and Bruce T. Wayne are married taxpayers who file a joint return. Their Social Security numbers are 123-45-9876 and 112-12-2331, respectively. Barbara's birthday is September 21, 1972, and Bruce's is June 27, 1971. They live at 1007 Mountain Drive, Gotham City, NY 11788. Barbara is the office manager for Gotham Dental Clinic, 433 Broad Street, Gotham, NY 11788 (Employer Identification Number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Wayne Enterprises, 1247 Central Avenue, Gotham, NY 11788 (Employer Identification Number 11-1111111). The following information is shown on their Wage and Tax Statements (Form W-2) for 2019. The Waynes had the following medical expenses for 2019: Medical insurance premiums Doctor bill for James incurred in 2018 and not paid until 2019 $4,500 7,600 8,500 Line Description Barbara Bruce 1 Wages, tips, other compensation $62,100 $58,000 4,500 Operation for James Prescription medicines for James Hospital expenses for James 900 5,300 3,500 Federal income tax withheld Social Security wages Social Security tax withheld 58,000 62,100 3,850 Reimbursement from insurance company, received in 2019 3,600 3,596 Medicare wages and tips 58,000 62,100 The medical expenses for James represent most of the 60% that Bruce contributed toward his father in-law's support. Medicare tax withheld 841 900 State New York New York State wages, tips, etc. 58,000 62,100 State income tax withheld 2,950 3,100 The Waynes provide over half of the support of their two children, Cynthia (born January 25, 1995, Social Security number 123-54-6788) and John (born February 7, 1999, Social Security number 123-54-6786). Both children are full-time students and live with the Waynes except when they are away at college. Cynthia earned $6,200 from a summer internship in 2019, and John earned $3,800 from a part-time job. Other relevant information follows: When they filed their 2018 state return in 2019, the Waynes paid additional state income tax of $900. During 2019. Barbara and Bruce attended a dinner dance sponsored by the Gotham Police Disability Association (a qualified charitable organization). The Waynes paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Waynes contributed $5,000 to Gotham Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. Via a crowdfunding site (gofundme.com), Barbara and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65). In 2019, the Waynes received interest income of $2,750, which was reported on a Form 1099INT from Second National Bank, 125 Oak Street, Gotham, MA 01850 (Employer Identification Number 98-7654322). The home mortgage interest was reported on Form 1098 by Gotham Commercial Bank, PO Box 1000, Gotham, MA 01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1, 2019) was taken out by the Waynes on May 1, 2015. During 2019, the Waynes provided 60% of the total support of Barbara's widower father, James Gordon (born March 6, 1943, Social Security number 123-54-6787). James lived alone and covered the rest of his support with his Social Security benefits. James died in November, and Barbara, the beneficiary of a policy on James life, received life insurance proceeds of $1,600,000 on December 28. The Waynes, had the following expenses relating to their personal residence during 2019: Property taxes $5,000 Qualified interest on home mortgage (acquisition indebtedness) 8,700 Page 2 of 3 797 words DE Display Settings E E -- + 100% File Home Insert Draw Design Layout References Mailings Review View H elp Design Layout Search Share Comments Barbara's employer requires that all employees wear uniforms to work. During 2019, Barbara spent $850 on new uniforms and $566 on laundry charges. Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association Neither Barbara's nor Bruce's employer reimburses for employee expenses. The Waynes do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. All members of the Wayne family had health care coverage for all months of 2019. This year the Waynes gave each of their children $2,000, which was then deposited into their Roth IRAs. Barbara and Bruce paid no estimated Federal income tax. Neither Barbara nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. Part 1Tax Computation Compute net tax payable or refund due for Barbara and Bruce Wayne for 2019. If they have overpaid, they want the amount to be refunded to them. If you use tax forms for your computations, you will need Form 1040 and supporting Schedules. Federal Return only. NOT State return. Page 3 of 3 797 words DX Display Settings E E . - + 100% File Home Insert Draw Design Layout References Mailings Review View Help Design Layout Search Share Comments Repairs to roof 5,750 Utilities 4,100 Fire and theft insurance 1,900 Tax Problem 3 Barbara E. and Bruce T. Wayne are married taxpayers who file a joint return. Their Social Security numbers are 123-45-9876 and 112-12-2331, respectively. Barbara's birthday is September 21, 1972, and Bruce's is June 27, 1971. They live at 1007 Mountain Drive, Gotham City, NY 11788. Barbara is the office manager for Gotham Dental Clinic, 433 Broad Street, Gotham, NY 11788 (Employer Identification Number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Wayne Enterprises, 1247 Central Avenue, Gotham, NY 11788 (Employer Identification Number 11-1111111). The following information is shown on their Wage and Tax Statements (Form W-2) for 2019. The Waynes had the following medical expenses for 2019: Medical insurance premiums Doctor bill for James incurred in 2018 and not paid until 2019 $4,500 7,600 8,500 Line Description Barbara Bruce 1 Wages, tips, other compensation $62,100 $58,000 4,500 Operation for James Prescription medicines for James Hospital expenses for James 900 5,300 3,500 Federal income tax withheld Social Security wages Social Security tax withheld 58,000 62,100 3,850 Reimbursement from insurance company, received in 2019 3,600 3,596 Medicare wages and tips 58,000 62,100 The medical expenses for James represent most of the 60% that Bruce contributed toward his father in-law's support. Medicare tax withheld 841 900 State New York New York State wages, tips, etc. 58,000 62,100 State income tax withheld 2,950 3,100 The Waynes provide over half of the support of their two children, Cynthia (born January 25, 1995, Social Security number 123-54-6788) and John (born February 7, 1999, Social Security number 123-54-6786). Both children are full-time students and live with the Waynes except when they are away at college. Cynthia earned $6,200 from a summer internship in 2019, and John earned $3,800 from a part-time job. Other relevant information follows: When they filed their 2018 state return in 2019, the Waynes paid additional state income tax of $900. During 2019. Barbara and Bruce attended a dinner dance sponsored by the Gotham Police Disability Association (a qualified charitable organization). The Waynes paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Waynes contributed $5,000 to Gotham Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. Via a crowdfunding site (gofundme.com), Barbara and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65). In 2019, the Waynes received interest income of $2,750, which was reported on a Form 1099INT from Second National Bank, 125 Oak Street, Gotham, MA 01850 (Employer Identification Number 98-7654322). The home mortgage interest was reported on Form 1098 by Gotham Commercial Bank, PO Box 1000, Gotham, MA 01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1, 2019) was taken out by the Waynes on May 1, 2015. During 2019, the Waynes provided 60% of the total support of Barbara's widower father, James Gordon (born March 6, 1943, Social Security number 123-54-6787). James lived alone and covered the rest of his support with his Social Security benefits. James died in November, and Barbara, the beneficiary of a policy on James life, received life insurance proceeds of $1,600,000 on December 28. The Waynes, had the following expenses relating to their personal residence during 2019: Property taxes $5,000 Qualified interest on home mortgage (acquisition indebtedness) 8,700 Page 2 of 3 797 words DE Display Settings E E -- + 100% File Home Insert Draw Design Layout References Mailings Review View H elp Design Layout Search Share Comments Barbara's employer requires that all employees wear uniforms to work. During 2019, Barbara spent $850 on new uniforms and $566 on laundry charges. Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association Neither Barbara's nor Bruce's employer reimburses for employee expenses. The Waynes do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. All members of the Wayne family had health care coverage for all months of 2019. This year the Waynes gave each of their children $2,000, which was then deposited into their Roth IRAs. Barbara and Bruce paid no estimated Federal income tax. Neither Barbara nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. Part 1Tax Computation Compute net tax payable or refund due for Barbara and Bruce Wayne for 2019. If they have overpaid, they want the amount to be refunded to them. If you use tax forms for your computations, you will need Form 1040 and supporting Schedules. Federal Return only. NOT State return. Page 3 of 3 797 words DX Display Settings E E . - + 100%
