Scenario

You have received the following information and are asked to fill out Bowen and Bonnies 2017 form 1040 for them. Bowen and Bonnie are married and have twin children named Braden and Baxter, who are 17 years old. They rent a house in North Portland.

Bonnie works at a coffee shop. Her W-2 reports that she has $34,000 in taxable wages and $4,000 was withheld for Federal income taxes and $2,000 was withheld for Oregon income taxes.

Bowen works at a environmental non-profit. His W-2 reports that he has taxable wages of $30,000, and that $3,000 was withheld for federal income taxes and $2,000 was withheld for Oregon income taxes.

They paid $1,500 in interest on their student loans in the current year. They also made a charitable donation of $150 to an environmental foundation that Bowensorganization works with that works to preserve the Columbia River Gorge.

For the purpose of this assignment, you do not need to fill out additional tax forms, just the 1040. Assume they do not have any other income or expenses. Also assume they had health insurance the entire year and that they are below the ages of 65. To calculate the tax due, please use the tax rate schedule in the 1040 instructions.

Fill in the Blanks: espacilly the following amounts from the 2017 1040:

Line 7:

Line 8a:

Line 10:

Line 20a:

Line 21:

Line 32:

Line 33:

Line 38:

Line 40:

Line 42:

Line 44:

Line 55:

Line 64:

Line 65:

Line 78:

Other Questions

1. How many personal and dependency exemptions did they claim?

2. What is their marginal tax rate percentage (do not enter the percentage symbol or a decimal point)?

3. What is their gross income?

4. What is their AGI?

5. What is their taxable income?

please show work.