please show work.

vino Prepare using 2020 tax forms. a. 1. Prepare a MI 1040 CR and MI-1040 CR-7 for John and Johanna Powers, ages 66 and 68. They have no dependents or handicaps. Their SSNs are 587-71-8320 and 210-30-7854 respectively. They owned and lived in their house at 312 W Outer Drive, Detroit, MI 48235. They property tax bills on their homestead are: Winter Tax: $950 + Admin fee of $9 b. Summer Tax: $475 + Special Assessment for a sidewalk of $175 + Admin fee of $5 Their home has a taxable value of $31,000. Their income includes Social Security net benefits of $5,850 and from that they paid $600 in medicare premiums. They also have a pension of $11,700. They paid supplemental BSBC health insurance premiums of $450. Their Consumers Power heating bill amount for the year was $485. What is their property tax credit? Their home heating credit? Property Tax Credit: Home Heating Credit: 2. Same scenario as above except that the Powers pension is $25,100. The Powers sold their home June 30, 2020 and moved in with their son on July 1, 2020. Their son refused to take rent for the remainder of the year. Heating costs were $290. a. Property Tax Credit: b. Home Heating Credit: 3. Susan Storm is 49, single and has three dependents and no special exemptions. Her SSN is 556-85-4125. Her kids are Jane (2011), Tom (2013) and Lucy (2014). Her only income are her wages of $17,850. Susan pays no health insurance premiums as her employer covers her. She rented an apartment at 360 W 18th St, Holland, MI 49424 and pays $750 per month in rent for the entire year. Her landlord is Bill Lux, 505 Main St, Hamilton, MI 49419. Heat is included in her rent. Prepare her MI 1040-CR and MI 1040 CR-7 Property Tax Credit: Home Heating Credit: TABLE 1 - USE TAX AGI SO-S10.000 $10.001 - $20.000 $20,001 - $30,000 $30,001 - $40,000 S40,001 - 550,000 $50,001 - $75.000 $75.001 - $100.000 Above $100.000.. Tax $2 S6 S10 S14 S18 $25 S35 Multiply AGI by 0.04% (0.0004) AGI from MI-1040, line 10 MI-1040CR TABLE A: SENIOR CREDIT REDUCTION Total Household Resources Percentage $21,000 or less 100% (1.00) $21.001 - $22.000 96% (0.96) $22.001 - $23.000 92% (0.92) $23.001 - $24,000 88% (0.88) $24.001 - $25.000 84% (0.84) $25,001 - $26.000 80% (0.80) $26.001 - $27.000 76% (0.76) $27.001 - $28.000 72% (0.72) $28,001 - $29.000 68% (0.68) $29.001 - $30,000 64% (0.64) $30,001 - $60,000 60% (0.60) MI-1040CR TABLE B: HOMESTEAD PROPERTY TAX CREDIT PHASE OUT Total Household Resources Percentage $51.000 or less. 100% (1.00) $51,001 - $52,000 90% (0.90) $52,001 - $53,000 .80% (0.80) $53.001 - $54,000 .70% (0.70) $54.001 - $55.000 60% (0.60) $55,001 - $56,000 50% (0.50) $56,001 - $57,000 40% (0.40) $57,001 - $58,000 30% (0.30) $58,001 - $59,000 20% (0.20) $59,001 - $60,000 10% (0.10) $60,001 - above 0% (0.00) MI-1040CR WORKSHEET 4: FIP/MDHHS BENEFITS A Enter amount from line 27 (FIP and other MDHHS benefits) B. Enter amount from line 33 (Total Household Resources). C. Subtract line A from line B (if amount is a negative value, enter "0") D. Divide line C by line B and enter percentage here E. If you checked only box 5a, enter the amount from line 38. If you checked box 5b, enter the amount from line 39. All others, enter the amount from line 41 here (maximum $1,500) F. Multiply line E by line D. If you are age 65 or older and you rent your home, enter amount here and on line A of Worksheet 5. Otherwise, enter here and on your MI-1040CR, line 42 MI-1040CR WORKSHEET 5: ALTERNATE PROPERTY TAX CREDIT FOR RENTERS AGE 65 AND OLDER A. Enter the amount from line 42 or, if line 33 exceeds $51,000, line 42 multiplied by line 43. If you received FIP/MDHHS, enter the amount from Worksheet 4, line F. B. Enter rent paid from line 53 and/or line 55 C. Multiply amount on line 33 by 40% (0.40) and enter here. D. Subtract line C from line B. If line C is more than line B, enter"0" E. Enter the larger of line A or line D here and carry amount to your MI-1040CR, line 44 (maximum $1,500).. 020 tov Your Exemptions (from line 16h) 0 or 1 TABLE A: 2020 Home Heating Credit Standard Allowance NOTE: If you lived in your homestead for less than 12 months, you must prorate your standard allowance (see instructions). Standard Income Allowance Ceiling $492 $14.043 2 $665 $18.986 3 $837 $23.900 4. $1.010 $28.842 5 $1.182 $33.757 6 $1.355 $38.700 + $173 for each + $4,943 for each exemption over 6 exemption over 6 TABLE B Exemptions and Maximum Income for the Alternate Credit Computation Your Exemptions Maximum (from line 16h) Income 0 or 1 $14.849 2 $19.982 3 $25.119 4 or more $26.091 vino Prepare using 2020 tax forms. a. 1. Prepare a MI 1040 CR and MI-1040 CR-7 for John and Johanna Powers, ages 66 and 68. They have no dependents or handicaps. Their SSNs are 587-71-8320 and 210-30-7854 respectively. They owned and lived in their house at 312 W Outer Drive, Detroit, MI 48235. They property tax bills on their homestead are: Winter Tax: $950 + Admin fee of $9 b. Summer Tax: $475 + Special Assessment for a sidewalk of $175 + Admin fee of $5 Their home has a taxable value of $31,000. Their income includes Social Security net benefits of $5,850 and from that they paid $600 in medicare premiums. They also have a pension of $11,700. They paid supplemental BSBC health insurance premiums of $450. Their Consumers Power heating bill amount for the year was $485. What is their property tax credit? Their home heating credit? Property Tax Credit: Home Heating Credit: 2. Same scenario as above except that the Powers pension is $25,100. The Powers sold their home June 30, 2020 and moved in with their son on July 1, 2020. Their son refused to take rent for the remainder of the year. Heating costs were $290. a. Property Tax Credit: b. Home Heating Credit: 3. Susan Storm is 49, single and has three dependents and no special exemptions. Her SSN is 556-85-4125. Her kids are Jane (2011), Tom (2013) and Lucy (2014). Her only income are her wages of $17,850. Susan pays no health insurance premiums as her employer covers her. She rented an apartment at 360 W 18th St, Holland, MI 49424 and pays $750 per month in rent for the entire year. Her landlord is Bill Lux, 505 Main St, Hamilton, MI 49419. Heat is included in her rent. Prepare her MI 1040-CR and MI 1040 CR-7 Property Tax Credit: Home Heating Credit: TABLE 1 - USE TAX AGI SO-S10.000 $10.001 - $20.000 $20,001 - $30,000 $30,001 - $40,000 S40,001 - 550,000 $50,001 - $75.000 $75.001 - $100.000 Above $100.000.. Tax $2 S6 S10 S14 S18 $25 S35 Multiply AGI by 0.04% (0.0004) AGI from MI-1040, line 10 MI-1040CR TABLE A: SENIOR CREDIT REDUCTION Total Household Resources Percentage $21,000 or less 100% (1.00) $21.001 - $22.000 96% (0.96) $22.001 - $23.000 92% (0.92) $23.001 - $24,000 88% (0.88) $24.001 - $25.000 84% (0.84) $25,001 - $26.000 80% (0.80) $26.001 - $27.000 76% (0.76) $27.001 - $28.000 72% (0.72) $28,001 - $29.000 68% (0.68) $29.001 - $30,000 64% (0.64) $30,001 - $60,000 60% (0.60) MI-1040CR TABLE B: HOMESTEAD PROPERTY TAX CREDIT PHASE OUT Total Household Resources Percentage $51.000 or less. 100% (1.00) $51,001 - $52,000 90% (0.90) $52,001 - $53,000 .80% (0.80) $53.001 - $54,000 .70% (0.70) $54.001 - $55.000 60% (0.60) $55,001 - $56,000 50% (0.50) $56,001 - $57,000 40% (0.40) $57,001 - $58,000 30% (0.30) $58,001 - $59,000 20% (0.20) $59,001 - $60,000 10% (0.10) $60,001 - above 0% (0.00) MI-1040CR WORKSHEET 4: FIP/MDHHS BENEFITS A Enter amount from line 27 (FIP and other MDHHS benefits) B. Enter amount from line 33 (Total Household Resources). C. Subtract line A from line B (if amount is a negative value, enter "0") D. Divide line C by line B and enter percentage here E. If you checked only box 5a, enter the amount from line 38. If you checked box 5b, enter the amount from line 39. All others, enter the amount from line 41 here (maximum $1,500) F. Multiply line E by line D. If you are age 65 or older and you rent your home, enter amount here and on line A of Worksheet 5. Otherwise, enter here and on your MI-1040CR, line 42 MI-1040CR WORKSHEET 5: ALTERNATE PROPERTY TAX CREDIT FOR RENTERS AGE 65 AND OLDER A. Enter the amount from line 42 or, if line 33 exceeds $51,000, line 42 multiplied by line 43. If you received FIP/MDHHS, enter the amount from Worksheet 4, line F. B. Enter rent paid from line 53 and/or line 55 C. Multiply amount on line 33 by 40% (0.40) and enter here. D. Subtract line C from line B. If line C is more than line B, enter"0" E. Enter the larger of line A or line D here and carry amount to your MI-1040CR, line 44 (maximum $1,500).. 020 tov Your Exemptions (from line 16h) 0 or 1 TABLE A: 2020 Home Heating Credit Standard Allowance NOTE: If you lived in your homestead for less than 12 months, you must prorate your standard allowance (see instructions). Standard Income Allowance Ceiling $492 $14.043 2 $665 $18.986 3 $837 $23.900 4. $1.010 $28.842 5 $1.182 $33.757 6 $1.355 $38.700 + $173 for each + $4,943 for each exemption over 6 exemption over 6 TABLE B Exemptions and Maximum Income for the Alternate Credit Computation Your Exemptions Maximum (from line 16h) Income 0 or 1 $14.849 2 $19.982 3 $25.119 4 or more $26.091