Required: Use the information below to complete the taxpayers taxable income and tax. Make assumptions regarding any information not given. Client Information: Taxpayer Name: John Doe Spouse: Jane Doe Taxpayer DOB: March 2, 1966 DOB: June 20, 1968 Occupation: Lawyer Occupation: Interior Designer Dependents: Michael Doe age18 Emily Doe age 16 Bella Doe age <1 April 18, 2002 May 21, 2004 June 24, 2020 Child Care Expenses John and Jane paid Challenges Day Care a total of $3,500 to care for Bella Doe while they worked. Challenges gave them a receipt for the full amount and the receipt included their federal ID #. Education Expenses Michael started his first year at State University. Total expenses: $11,500 Tuition 381 Fees 427 Books 4,400 Room and Board Michael received a scholarship for $5,000, which was limited to pay his tuition. John and Jane paid the remainder of the tuition which was 6,500. Earned Income Jane works for Macro Interior Design and her W-2 is as follows: Wages $67,877 Federal withholding $7,354 Social Security withholding $4,208 Medicare withholding $543 State (CA) withholding $4,947

Self-Employment Income John received $147,647 from his clients. His expenses were as follows: Advertising $1,750 Utilities $1,834 Court Fees $10,542 Accounting Fees 1,500 Office Supplies 1,200 Office Rent 4,400 Secretary Wages 32,000 Liability Insurance 650 Travel 3,196 Equipment Repairs 2,539 Computer Repairs 1,425 Licenses and fees 660 Client Gifts 2,500 for 100 people Net income from Self Employment = Rental Income John and Jane purchased a rental property in January of 2017 to offset some of their income. The home was purchased for $200,000 and $25,000 was for the land. It was empty for part of the year, but a new tenant moved in February 1st of the current year. The rent is $2,250 per month. The renter paid a refundable $875 cleaning fee. The following expenses were paid by the Does: Advertising $ 75 Insurance 532 Utilities 150 (while house was empty) Repairs 450 Property Taxes 2,769 Mortgage Interest 4,525 Depreciation = Income = Net Rental Income = Other Deductions/Expenses/Payments John and Jane give you the following information: Federal quarterly taxes paid for 2020 $14,000 2019 State Balance Due $1,349 Paid April 10th, 2020 2020 State Quarterly payments for $4,800 Paid each quarter on time (1,200 per payment) (4th Qtr 2019 payment was $1,000 paid in Jan 2020) Property taxes 3,478 Mortgage Interest 10,432 Cash Donations to Church 15,000 Cash Donations to Goodwill 399 Car Loan Interest 500 BofA Credit Card Interest 1,200

John and Jane will file MFJ for 2020 and will utilize any available deductions/credits. Compute the following: Total includable gross income: Deductions for AGI: AGI: Itemized Deductions: Which should they choose (itemized or standard): Taxable income: Tax: Credits: Tax Due/Refund: TO RECEIVE THE FULL CREDIT PLEASE COMPLETE THE NECESSARY 2020 INCOME TAX FORMS