prepare 1040 using the facts:

Facts:

• Janet and Jill Franklin are a married filing jointly couple who live at 10500 Taba Cove Ct, Fairfax, Virginia 22030 after purchasing it on Jan 1, 2019.
• They paid $1 million dollars with a $200,000 down payment. They have a 30 year fixed loan with 4.25% interest. Their principal and interest payments totals $4,000/month with $3,200 for interest and $800 for principal. They have $725/month in property taxes and $150/month in homeowner association dues. Finally, they pay $250/month in homeowner insurance. (Note the mortgage interest deduction limitations.)
• Janet is a lawyer and received a W-2 with 175,000 salary and 25,000 in withholding.
• Jill is working part-time and received a W-2 with 30,000 salary and 3,000 in withholding.
• Together, they owe Virginia over $10,000 in income taxes.
• Janet purchased a Virginia bond for $10,000 and earned 3% interest in 2019.
• They earned 1.0% interest on a CD worth $10,000 at Discover Bank.
• For the full year, they invested $45,000 in the S&P 500 index (VOO), which has a
• dividend yield of 1.5%. Their investment in the S&P 500 index appreciated from $45,000
• to $46,500, but they did not sell.
• Excited for the launch of a new iPhone, they bought 100 shares of Apple stock at
• $221/share on 9/12/19. Disappointed by the new iPhone, they sold their 100 shares for
• $261/share on 9/13/19.
• They each contributed $5,500 to their Roth IRAs.
• They also donated $500 worth of clothing to Goodwill and $150 to the re-election
• campaign of Congressman Gerry Connolly.
• Jill has a $25,000 student loan with interest rate at 6%. She is currently studying for the
• bar exam and enrolled in a review course for $800.
• Jill has recently been in poor health and had frequent overnight visits to the hospital.
• She had medical expenses of $89,000 and insurance paid for $79,000 so out-of-pocket was $10,000.