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Problem 5: Dick and Jane are retired and marred to each other, living alone with no other dependents. They are both 63 and file a
Problem 5: Dick and Jane are retired and marred to each other, living alone with no other dependents. They are both 63 and file a married filing joint retum. Using the following information compute their taxable income and net tax refund or tax due for 2020. Dick Salary Income $ 3,500 Social Security Income $ 14,000 Municipal Bond Interest Income $ 14,000 Dividends S-0- Net Gain from Small Business $ 6,000 Tremized Deductions $ 500 Federal Withholding $ 1,500 Rental Loss (Fully Deductible) $ -|- Net Self-Employment Tax Due $ 950 IRA Deduction $ 3,000 y Self-Employmt Tax Deduction S( 475) Jane $ 3,000 $ 8,000 $ 1,500 $ 19,000 $-0- $ 5,500 $ 500 $ (10,500) $ -0- $ 3,000 $ -O- SHOW YOUR WORK!!! USE THE TAX TABLES TO COMPUTE THE TAX
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