Question
Russell and Denise Powell are married filing jointly. Their address is 525 Spencer Street Miami, FL 33054. Additional Information about Mr. and Mrs. Powell is
Russell and Denise Powell are married filing jointly. Their address is 525 Spencer Street Miami, FL 33054. Additional Information about Mr. and Mrs. Powell is as follows:
Russell Powell | Denise Powell |
Social Security Number: 412-34-5670 | Social Security Number: 412-34-5671 |
Date of Birth: 4/11/1971 | Date of Birth: 7/24/1974 |
W-2 For Russell shows these amounts: | W-2 for Denise shows these amounts: |
Wages (Box 1): $75,000 | Wages (Box 1): $35,000 |
Federal W/H (Box 2): $6,950 | Federal W/H (Box 2): $3,820 |
Social Security Wages (Box 3): $75,000 | Social Security Wages (Box 3): $35,000 |
Social Security W/H (Box 4): $4,650 | Social Security W/H (Box 4): $2,025 |
Medicare Wages (Box 5): $75,000 | Medicare Wages (Box 5): $35,000 |
Medicare W/H (Box 6): $1,088 | Medicare W/H (Box 6): $475 |
Form 1099-INT for Russell and Denise show this amount: Box 1 = $3,740 Peninsula Bank They also received tax-exempt interest of $1,500, as well as $90 for jury duty pay when Denise went to court to serve for two days.
Denise received two weeks of workers compensation pay for a total of $1,750.
Dependent: Daughter Sarah Powell. Her date of birth is 6/15/2008. Her Social Security number is 412-34-5672
Fill out the appropriate tax form for Russell and Denise Powell. Tax forms can be obtained from the IRS website. **Be sure you save the form to your computer BEFORE you fill in any information or your data will be lost when you save the file with the data entered. Once saved, access the saved form from your computer, not the web browser.**
3. During the current year Denise has paid the following medical expenses:
Drugs (prescribed by physician) | $1,850 |
Marijuana (prescribed by physician) | $2,125 |
Health Insurance Premiums After Taxes | $775 |
Doctors Fees | $1,450 |
Contact Lenses | $280 |
Over-the-Counter-Drugs | $325 |
Denise received $750 for a portion of her doctors fees from her insurance.
Create a spreadsheet in Excel to calculate Denises medical expense deduction. Use the formula for calculating a taxpayers medical expense deduction presented in your textbook in learning object 5.6 as a guide. Use the AGI you calculated for the couple in week 2 in your calculation. Make sure to properly label each medicalexpense andprovide an explanation for any medical expenses that are nondeductible.
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