Lillian and Jackson Clark are a married couple in their early 20s living in Los Angeles. Jackson Clark earned $93,000 in 2018 from his sales job. During the year, his employer withheld $11,685 for income tax purposes. In addition, the Clarks received interest of $350 on a joint savings account, $750 interest on tax-exempt municipal bonds and dividends of $400 on common stocks. At the end of 2018, the Clarks sold
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Lillian and Jackson Clark are a married couple in their early 20s living in Los Angeles. Jackson Clark earned $93,000 in 2018 from his sales job. During the year, his employer withheld $11,685 for income tax purposes.
In addition, the Clarks received interest of $350 on a joint savings account, $750 interest on tax-exempt municipal bonds and dividends of $400 on common stocks. At the end of 2018, the Clarks sold two stocks, A and B. Stock A was sold for $700 and had been purchased four months earlier for $800. Stock B was sold for $1,500 and had been purchased 3 years earlier for $1,100. Although his company's pension plan covers Jackson, he plans to contribute $5,500 to a traditional deductible IRA for 2018.
Their only child, Carter, age 2, received (as his sole source of income) dividends of $200 from Hershey stock.
Here are the amounts of money paid out during 2018 by the Clarks:
| Expenses | Cost |
|---|---|
| Medical and Dental expenses (unreimbursed) ------- ARE THESE CONSIDERED ITEMIZED? ------- | $200 |
| State and local property taxes | $831 |
| Interest paid on home mortgage | $4,148 |
| Charitable contributions | $1,360 |
| Total | $6,539 |
In addition, Reimbursed Travel Costs Jackson incurred for an out-of-town business trip:
-------ARE THESE CONSIDERED ITEMIZED?--------------
| Expenses | Cost |
|---|---|
| Airline ticket | $250 |
| Taxis | $20 |
| Lodging | $60 |
| Meals (as adjusted to 50 percent of cost) | $36 |
| Total | $366 |
Attached is the tax table
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