They are both as years Of age . They have two daughters and one Son . One daughter ( age 25) is married with children . One daughter (age 20 ) is living at home and attending college . Their son ( age 16 ) is a junior in high school . They are currently paying for their college - student daughter to attend School full time ." Judy is Employed as a teacher and makes $50,000 a year . She used GOOD of her personal funds to purchase books and other supplies for her classroom .* Walter is Employed as a CFA and makes $100, 0do a year . They provided you a long - IN'T which reported $ 4, 500 in interest of which $500 was savings bond interest . They provided you a Long - DIV which reported $300 in dividends* They received a state tax refund last year of $385 They provided you a list of Expenses including* Doctor's bills , $800 Prescriptions , $400 NEW glasses , $2000 Dental bills , $560 Braces , $5000 Property taxes for their two cars of Good , which included $ 50 in decal fees Real Estate taxes Of $ 4500 Mortgage interest of $ 12, 000 Gifts to charities , $1000 GOFundME contribution to local family in need , $100 Tax Preparation FEES for last year's taxes , $ 400 Consider the most beneficial way for Judy and Walter to file their federal income tax return . Prepare a brief written summary that addresses the following ." Estimated taxable income for Judy and Walter [please Show computations! ! Summary of tax return , including any suggestions or tax planning considerations Explain how you determined the filing status , dependents , and use of standarditemized deduction