TAX RETURN PROBLEM Please complete form 1040 schedule A for the Itemized Deductions only! ____________________________________________________________________________ Alan (45) and Julie (42) Fisher are married with 2 children (Jennifer K. and Jason D.) who qualify as their dependents. Jennifer was age 20 and Jason was age 12 at the end of 2015. Jennifer is a full-time student at Local University; she lives at home and commutes to school. The Fisher family lives at 1501 Maple St. in Wheaton, IL 60187. Alan works as a project manager and Julie is self-employed. They do not wish to contribute to the presidential election campaign fund. Relevant social security numbers are: Alan: 342-55-XXXX Julie: 389-14-XXXX Jennifer: 378-66-XXXX Jason: 320-21-XXXX Alan received a Form W-2 from his employer (XYZ Electric Co.; West Chicago, IL; FEIN : 99-1723493) showing the following: Federal Taxable Wages $ 158,000 Federal Income Tax Withheld $ 18,100 State Income Tax Withheld $ 5,450 Note: Federal Taxable Wages are wages after deducting any pre-tax items. Alan and Julie had the following items for 2015: Interest from First State Bank of $3,500. Alan and Julie have no foreign bank accounts and no interest in any foreign trusts. Dividends of $12,000 as follows: PepsiCo dividend of $5,900, all of which are qualified dividends GM dividend of $3,780, all of which are qualified dividends Dividend from Evergreen Total Return Mutual Fund of $2,320, of which $820 are qualified dividends Julie is a freelance writer and she calls her business Writing on the Side. Julie is a cash basis taxpayer. Her business office is located at 120 N. Main St., Wheaton, IL 60187 Julie had the following income and expense items associated with her business: Income from sale of articles: $143,000 Rent on her office space: $21,900 Office utilities: $8,300 Office supplies: $5,450 Liability insurance for her business: $9,880 Business meals while travelling on company business: $4,500 Other business travel expenses: $6,000 None of these expenses require the filing of a form 1099. Julie purchased and placed in service the following new fixed assets for her business: Office Furniture and fixtures costing $40,000 on January 10, 2015 Computer equipment costing $20,000 on March 28, 2015 Automobile (2014 BMW) costing $39,000 on January 5, 2015. Total business mileage for the year was 8,400 (70% for business use). Total mileage for the year was 12,000. Julie will use the actual cost method for the auto. She will not elect Section 179 for the auto. Additional expenses of operating the car for the entire year are as follows: Gasoline: $3,650 Repairs and Maintenance: $570 Comprehensive insurance coverage premiums: $1,160 They also paid the following during the year: State income taxes withheld from Alans pay, per his W-2, above: $5,450 (which was greater than the state sales tax deduction would be). Medical expenses, not including insurance premiums: $18,000 Home mortgage interest at Chase Bank, reported on Form 1098: $13,270. Property taxes on home: $9,930 Charitable contributions in cash: $4,460 Fees for preparing last years tax return of $350 were paid in April of 2014 Safe deposit box rental : $75 (for storage of investment documents) Fees for the management of taxable investments: $2,700 If they have a refund, the Fishers want to have it direct deposited to their savings account at First State Bank, account number 12345678 and routing number 987654321.