Question
This problem is for the 2019 tax year. Mike E. Jones and Joan A. Baxter, each age 43, married on September 7, 2015. Mike and
This problem is for the 2019 tax year. Mike E. Jones and Joan A. Baxter, each age 43, married on September 7, 2015. Mike and Joan will file a joint return for 2019. Mike's Social Security number is 111-11-1112. Joan's Social Security number is 111-11-1113, and she adopted "Jones" as her married name. They live at 201 Riverview Dr, Augusta, GA 30901. Mike was divorced from Sally Jones in March 2014. Under the divorce agreement, Mike is to pay Sally $2,000 per month for the next 8 years or until Sally's death, whichever occurs first. Mike pays Sally $24,000 in 2019. In addition, in January 2019, Mike pays Sally $50,000, which is designated as being for her share of the marital property. Also, Mike is responsible for all prior years' income taxes. Sally's Social Security number is 123-45-6788. Mike's salary for 2019 is $145,000, and his employer, Facebook, Inc. (Federal I.D. No. 98- 7654321), provides him with group term life insurance equal to three times his annual salary. His employer withheld $23,000 for Federal income taxes and $5,000 for state income taxes. The proper amounts were withheld for FICA taxes. Joan recently graduated from law school and is employed by Legal Liability, Inc. (Federal I.D. No. 11-1111111), as a prosecutor. She receives a salary of $45,000 in 2019. Her employer withheld $8,000 for Federal income taxes and $2,000 for state income taxes. The proper amounts were withheld for FICA taxes. Joan has $1,000 in qualified dividends on Mesa Corporation stock she inherited. Mike and Joan receive a $1,800 refund on their 2018 state income taxes. They itemized deductions on their 2018 Federal income tax return (total of $27,000, of which $9,000 were State & Local Taxes). Mike and Joan pay $3,500 interest and $1,500 property taxes on their personal residence in 2019. Their charitable contributions total $9,500 (all to their church). They paid sales taxes of $1,500, for which they maintain the receipts. Both spouses want to contribute to the Presidential Election Campaign and neither have ever owned or used any virtual currency. Required: THIS RETURN IS FOR 2019 TAX LAWS IN EFFECT FOR 2019 WILL APPLY Compute the Jones' net tax payable (or refund due) for 2019. Use and PRINT OUT Form 1040 and Schedule A, Schedule B, and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. You are required to complete the 2019 Federal tax return using 2019 Intuit ProConnect Tax Software. You are required to submit the filing copy of the return in pdf format in D2L (courses) using the link under the assignments tab. This link will take you to Chalk & Wire for assignment submission. For more instructions, see Student Resources tab under student handouts
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