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is now enabled3Item 1 Assume the taxpayer does NOT wish to contribute
to the Presidential Election Fund, unless otherwise stated in the problem.
In addition, the taxpayers did NOT receive, sell, send, exchange, or
otherwise acquire any financial interest in any virtual currency during the
year. John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO
81643, file as married filing jointly. John's Social Security number is 412-
34-5670(date of birth 5/12/1985), and Shannon's is 412-34-5671(date of
birth 11/3/1987). John's W-2 contained the following information: Wages
(box 1)= $ 66,346.74 Federal W/H (box 2)= $4,787.23 Social Security
wages (box 3)= $ 66,346.74 Social Security W/H (box 4)= $ 4,113.50
Medicare wages (box 5)= $66,346.74 Medicare W/H (box 6)= $962.03
Shannon did not work for the year due to a medical condition but did
receive unemployment compensation of $5,283 for the year with federal
withholding of $645.86. In the same year, they had the following medical
costs: Shannon's prescribed diabetes medication $4,250 Shannon's
hospital charges 9,350 Shannon's regular physician visits 835 Shannon's
eye doctor 75 Shannon's diabetes blood testing supplies 755 Insurance
reimbursements 1,925 In addition, they had the following other expenses:
State income taxes $4,950 Real estate property taxes 4,170 Car loan
interest 500 Personal property taxes 765 Cash charitable contributions
(made ratably throughout the year to their church)2,135 Mortgage interest
expense 9,970 Union dues for John 575 Tax preparation fees 225
Required: Prepare a Form 1040 with a Schedule 1 and Schedule A for the
O'Banions using any appropriate worksheets. Use the appropriate Tax
Tables. Note: List the names of the taxpayers in the order in which they
appear in the problem. Round your final answers to the nearest whole
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