Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer portion of the self-employment tax on Jessie's income is $831. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary $ 144,100 Jessie's craft sales 18,400 Interest from certificate of deposit 1,650 Interest from Treasury bond funds 716 Interest from municipal bond funds 920 Expenditures: Federal income tax withheld from Joe's wages $ 13,700 State income tax withheld from Joe's wages 6,400 Social Security tax withheld from Joe's wages 7,482 Real estate taxes on residence 6,200 Automobile licenses (based on weight) 310 State sales tax paid 1,150 Home mortgage interest 26,000 Interest on Masterdebt credit card 2,300 Medical expenses (unreimbursed) 1,690 Joe's employee expenses (unreimbursed) 2,400 Cost of Jessie's craft supplies 4,260 Postage for mailing crafts 145 Travel and lodging for craft shows 2,230 Self-employment tax on Jessie's craft income 1,662 College tuition paid for Lizzie 5,780 Interest on loans to pay Lizzie's tuition 3,200 Lizzie's room and board at college 12,620 Cash contributions to the Red Cross 525 Determine Joe and Jessie's AGI and taxable income for the year.
Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer portion of the self-employment tax on Jessie's income is $831. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:
|
Income: |
|
|
Joe's salary |
$ 144,100 |
|
Jessie's craft sales |
18,400 |
|
Interest from certificate of deposit |
1,650 |
|
Interest from Treasury bond funds |
716 |
|
Interest from municipal bond funds |
920 |
|
Expenditures: |
|
|
Federal income tax withheld from Joe's wages |
$ 13,700 |
|
State income tax withheld from Joe's wages |
6,400 |
|
Social Security tax withheld from Joe's wages |
7,482 |
|
Real estate taxes on residence |
6,200 |
|
Automobile licenses (based on weight) |
310 |
|
State sales tax paid |
1,150 |
|
Home mortgage interest |
26,000 |
|
Interest on Masterdebt credit card |
2,300 |
|
Medical expenses (unreimbursed) |
1,690 |
|
Joe's employee expenses (unreimbursed) |
2,400 |
|
Cost of Jessie's craft supplies |
4,260 |
|
Postage for mailing crafts |
145 |
|
Travel and lodging for craft shows |
2,230 |
|
Self-employment tax on Jessie's craft income |
1,662 |
|
College tuition paid for Lizzie |
5,780 |
|
Interest on loans to pay Lizzie's tuition |
3,200 |
|
Lizzie's room and board at college |
12,620 |
|
Cash contributions to the Red Cross |
525 |
|
Determine Joe and Jessie's AGI and taxable income for the year. |
|
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