Question
Trying to figure out how to apply this to a tax return Frank and Sally are married and have two dependent children, Val and Ted.
Trying to figure out how to apply this to a tax return
Frank and Sally are married and have two dependent children, Val and Ted. Ted is 19 and is currently in college (full time) at Perdue State University. Val is 14. Frank works as a design engineer for a manufacturing firm while Sally began doing taxes for others from their home (but no part of the home is used exclusively for the business) after being laid off from H&R Block in a prior year. Frank and Sally own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Teds college expenses (balance of $35,000).
Neither Frank nor Sally are blind or over age 65. Based on the numbers above and below, complete pages 1 and 2 of Form 1040, Schedule A, Schedule C, Schedule 1, and Schedule D for 2021.
Income: Franks salary $ 110,750 Sallys sales 8,400 Interest from certificate of deposit 1,650 Interest from Treasury bond funds 727 Interest from municipal bond funds 920 Sold 100 shares of SGI on 5/15/2021 for $240, shares were purchased on 3/20/2012 for $700 (total, not per share) Sold 150 shares of HP on 7/15/2021 for $940, shares were purchased on 3/20/2021 for $800 (total, not per share) Sally's unemployment compensation 1,895 Qualified dividend on SGI stock on 1/30/21 300
Expenditures: Federal income tax withheld from Franks wages $ 10,100 State income tax withheld from Franks wages 11,750 Assume the correct amount of SS tax was withheld Real estate taxes on residence 6,200 Automobile licenses (based on weight, not value) 310 State sales tax paid 1,150 Home mortgage interest 14,000 Interest on personal credit card 300 Medical expenses (unreimbursed) 1,690 Franks employee expenses (unreimbursed) 2,400 Postage for Sally's business 145 Travel and lodging for Sally's business 2,230 Meals while Sally was traveling for business 670 Ignore self-employment taxes (and if the software calculates an amount assume it is correct). College tuition paid for Ted 6,780 Interest on loans to pay Ted's tuition 3,200 Teds room and board at college 12,620 Cash contributions to Red Cross 6,980
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