It's a complete question.I just need introduction part for this question because already I have solution for this question.definetly will upvote. 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 born 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:Tax Return ProblemDecision MakingCommunicationsutFoconnect.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 herhusband, Casey, who earned $10,600 during 2018. Gina's Social Security numberis 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.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.LineDescriptionDanFreida$74,000Wages, tips, other compensationFederal income tax withheld1$86,000211,00012,40017State 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)Interest on savings at Second BankInterest on City of Corbin bonds$4,2001,600900Interest on First Bank CD382The $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%. Danparticipated on a game show and won a cash prize of $7,000.In addition to the above information, Dan and Freida's itemized deductionsincluded the following:Paid on 2018 Kentucky income tax$ 700Personal property tax paidReal estate taxes paid6001,800Interest on home mortgage (Corbin S&L)Cash contributions to the United Way4,900800Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-208Copyright 2020 Cengage Leaming. All Rights Reserved. May not be copied, scanned, or duplicatod, in whole or in part. Due to electronic rights, some third party content may be suppeessed from the eBook andior Chapters)dinorial review has deemed that any suppressed content does not materially affoct the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsoquent rights restrictions require it.CHAPTER 4 Gross Income: Concepts and Inclusions4-47Sales 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 CoтрutationCompute 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 WIJJ 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 have noincome from songwriting in 2019. To make up for the loss of income, Freida plansto increase the amount of time she spends selling real estate. She estimates that shewill be able to earn $90,000 in 2019. Assume that all other income and expenseitems will be approximately the same as they were in 2018 (including the prizewinnings). Assume that Willie will be enrolled in college as a full-time student forthe summer and fall semesters. Will the Butlers have more or less disposable income(after Federal income tax) in 2019? Write a letter to the Butlers that contains youradvice, and prepare a memo for the tax files.

Joint return: Tax return filled by married couples having filling status of married filling jointly…

Part 1–Tax Computation Compute Dan and Freida's 2018 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Form 1040 and Schedules 1, 5, and B. Suggested software: ProConnect Tax Online. Part 2-Tax Planning Dan plans to reduce his work schedule and work only half-time for WIJ in 2019. He has 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 have no income from songwriting in 2019. To make up for the loss of income, Freida plans to increase the amount of time she spends selling real estate. She estimates that she will be able to earn $90,000 in 2019. Assume that all other income and expense items will be approximately the same as they were in 2018 (including the prize winnings). Assume that Willie will be enrolled in college as a full-time student for the summer and fall semesters. Will the Butlers have more or less disposable income (after Federal income tax) in 2019? Write a letter to the Butlers that contains your advice, and prepare a memo for the tax files.