Question
What is this couples State and Local tax that I enter in Schedule A LINE 5(2020 rules)?*************PLEASE HELP WITH THIS They paid $4,500 to Friendly
What is this couples State and Local tax that I enter in Schedule A LINE 5(2020 rules)?*************PLEASE HELP WITH THIS
They paid $4,500 to Friendly Hills Child Care center for after-school care for both Justin and Jordan, allocated equally. The address is 2 River Dr, Riverside, CA 92501 and their ID number is 22-1234567.
Stefanis W-2 from the Riverside school district showed the following:
| Wages = | $ 56,925.04 |
|---|---|
| Federal W/H = | $ 6,935.90 |
| Social Security wages = | $ 56,925.04 |
| Social Security W/H = | $ 3,529.35 |
| Medicare Wages = | $ 56,925.04 |
| Medicare W/H = | $ 825.41 |
| California W/H = | $ 2,105.75 |
Chris's accounting business is located in downtown Riverside and his business code is 541211. His business had the following income and expense information (Cash basis) for the year:
| Gross revenues | $ 165,000 |
|---|---|
| Expenses: | |
| Advertising | $ 2,100 |
| Insurance | 1,200 |
| Legal fees | 10,500 |
| Office supplies | 800 |
| Rent | 24,000 |
| Travel | 6,945 |
| Meals | 2,400 |
| Utilities | 2,800 |
| Wages | 34,000 |
| Dues | 650 |
Additionally, Chris and Stefani paid the following expenses during the year:
| Medical and dental expenses | $ 4,500 |
|---|---|
| Property tax (home on Victoria Lane) | 3,750 |
| State income taxes with the 2018 return | 3,900 |
| Donations to the church (cash) | 3,500 |
| Mortgage interest (home on Victoria Lane) | 16,900 |
| Stefani paid $950 in classroom expenses for her class | |
Chris and Stefani also earned $1,075 of interest income from California Bank during the year.
Lastly, Chris and Stefani own a three-bedroom cabin in Big Bear Lake (they bought it in January of 2008 for $300,000). The address is 3105 Stonehedge Road, Big Bear Lake, CA 92315. They did not use the property for personal use at any time during the year. The revenue and expenses for the Big Bear Lake rental property are as follows:
| Rental income | $ 18,000 |
|---|---|
| Expenses: | |
| Insurance | $ 1,200 |
| Property taxes | 2,500 |
| Auto (standard mileage) | 267 |
| Management fees | 1,600 |
| Repairs and maintenance | 1,100 |
| Mortgage interest | 9,000 |
| Depreciation | Calculate |
| Utilities | 450 |
The Watanabes also made $12,000 and $9,000 in federal and California estimated income tax payments, respectively, on 06/15/20.
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Financial Accounting
Authors: Joe Ben Hoyle, C.J. Skender, Joe Hoyle
1st Edition
0982361831, 978-0982361832
