Please answer .just a try is also fine but don't skip off.its my humble request. 59. Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlerslive at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112,and Freida's is 123-45-6780. Dan was bom on January 15, 1967, and Freida was bornon August 20, 1968.During 2018, Dan and Freida furnished over half of the total support of each ofthe following individuals, all of whom still live at home:a. Gina, their daughter, age 22, a full-time student, who married on December 21, 2018,has no income of her own and for 2018 did not file a joint return with her husband,Casey, who earned $10,600 during 2018. Gina's Social Security number is 123-45-6788.b. Willie, their son, age 20, who had gross income of $6,300 in 2018, dropped outof college in October 2018. He had graduated from high school in May 2018.Willie's Social Security number is 123-45-6787.c. Ben, their oldest son, age 26, is a full-time graduate student with gross incomeof $5,200. Ben's Social Security number is 123-45-6786.Tax Return ProblemDecision MakingCommunicationsutFoconnect.Dan was employed as a manager by WIJ, Inc. (employer identification number11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as asalesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899Central Street, Corbin, Ky 40701). Selected information from the W-2 Forms pro-vided by the employers is presented below. Dan and Freida use the cash method.Line DescriptionDanFreida1 Wages, tips, other compensation$74,000$86,0002Federal income tax withheld11,00012,40017State income tax withheld2,9603,440Freida sold a house on December 30, 2018, and will be paid a commission of $3,100(not included in the $86,000 reported on the W-2) on the January 10, 2019, closing date.Other income (as reported on 1099 Forms) for 2018 consisted of the following:Dividends on CSX stock (qualified)$4,200Interest on savings at Second BankInterest on City of Corbin bonds1,600900Interest on First Bank CD382Prize7,000The $382 from First Bank was original issue discount. Dan and Freida collected$16,000 on the First Bank CD that matured on September 30, 2018. The CD waspurchased on October 1, 2016, for $14,995, and the yield to maturity was 3.3%.During the year, Dan participated on a game show and won a cash prize of $7,000.In addition to the above information, Dan and Freida's itemized deductionsincluded the following:$ 700Paid on 2018 Kentucky income taxPersonal property tax paid600Real estate taxes paidInterest on home mortgage (Corbin S&L)Cash contributions to the United Way1,8004,900800 Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimatedtax payments of $8,000. All members of the family had health insurance coveragefor all of 2018. Dan and Freida do not wish to contribute to the Presidential ElectionCampaign. The Kentucky income tax rate is 4%.Part 1-Tax ComputationCompute Dan and Freida's 2018 Federal income tax payable (or refund due). If youuse tax forms for your computations, you will need Form 1040 and Schedules 1, 5,and B. Suggested software: ProConnect Tax Online.Part 2-Tax PlanningDan plans to reduce his work schedule and work only half-time for WIJ in 2019. Hehas been writing songs for several years and wants to devote more time to devel-oping a career as a songwriter. Because of the uncertainty in the music business,however, he would like you to make all computations assuming that he will haveno income from songwriting in 2019. To make up for the loss of income, Freidaplans to increase the amount of time she spends selling real estate. She estimatesthat she will be able to earn $90,000 in 2019. Assume that all other income andexpense items will be approximately the same as they were in 2018 (including theprize winnings). Assume that Willie will be enrolled in college as a full-time studentfor the summer and fall semesters. Will the Butlers have more or less disposableincome (after Federal income tax) in 2019? Write a letter to the Butlers that containsyour advice, and prepare a memo for the tax files.0010

A tax deduction is declared by the taxable assessee for which the tax is being determined and he…

a. Gina, their daughter, age 22, a full-time student, who married on December 21, 2018, has no income of her own and for 2018 did not file a joint return with her husband, Casey, who eamed $10,600 during 2018. Gina's Social Security number is 123-45-6788. b. Willie, their son, age 20, who had gross income of $6,300 in 2018, dropped out of college in October 2018. He had graduated from high school in May 2018. Willie's Social Security number is 123-45-6787. c. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786. Dan was employed as a manager by WJIJ, Inc. (employer identification number 11 1111111 60Á Feapklin Streot Corbin KV 60702) ond molou