Apple and Bob Johnson (both age 45) are married taxpayers who file a joint return. They have a son, John, age 10. During 2020, they had the following receipts: 1 Salary (Apple’s salary: $85000, Bob’s:$72,000) $157,000 2. Interest Income · City of Normal school bonds $1,000 · Ford Motor Company bonds 1,200 · PNC Bank certificate of deposit 600 2,800 3. Annual gift from parents 26,000 4. Lottery winnings 1,000 5. Short-term capital loss (from stock investment) ( 5,000) 6. Long-term capital gain (from stock investment) 1,000 6. Federal income tax refund from year 2017 return 2,400 During 2020, they also have the following payments/contributions: 1. Medical expenses · Medical insurance premiums $4,500 · Hospital expenses for John 4,500 9,000 2. Property taxes 5,000 3. Contribution to IRA 10,000 4. Qualified interest on home mortgage 5,000 5. Utilities (water, gas, and electricity) 4,500 6. Car insurance 1,200 7. State income tax paid 13,000 8. Interest on car loan 1,500 9. Cash contribution to church 3,300 10. Bob paid the alimony to his ex-wife 8,000 Please help Johnsons to calculate the following items on their 2020 Form 1040 Their AGI Their taxable income and the following itemized deductions: 1. Allowable deduction on medical and dental expenses: 2. Allowable deduction on taxes they paid 3. Allowable deduction on Interest paid 4. Allowable deduction on Gift to Charity 5. Allowable miscellaneous deductions
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Apple and Bob Johnson (both age 45) are married taxpayers who file a joint return. They have a son, John, age 10. During 2020, they had the following receipts:
|
1 |
Salary (Apple’s salary: $85000, Bob’s:$72,000) |
$157,000 |
|
2. |
Interest Income · City of Normal school bonds $1,000 · Ford Motor Company bonds 1,200 · PNC Bank certificate of deposit 600 |
2,800 |
|
3. |
Annual gift from parents |
26,000 |
|
4. |
Lottery winnings |
1,000 |
|
5. |
Short-term capital loss (from stock investment) |
( 5,000) |
|
6. |
Long-term |
1,000 |
|
6. |
Federal income tax refund from year 2017 return |
2,400 |
During 2020, they also have the following payments/contributions:
|
1. |
Medical expenses · Medical insurance premiums $4,500 · Hospital expenses for John 4,500
|
9,000 |
|
2. |
Property taxes |
5,000 |
|
3. |
Contribution to IRA |
10,000 |
|
4. |
Qualified interest on home mortgage |
5,000 |
|
5. |
Utilities (water, gas, and electricity) |
4,500 |
|
6. |
Car insurance |
1,200 |
|
7. |
State income tax paid |
13,000 |
|
8. |
Interest on car loan |
1,500 |
|
9. |
Cash contribution to church |
3,300 |
|
10. |
Bob paid the alimony to his ex-wife |
8,000 |
Please help Johnsons to calculate the following items on their 2020 Form 1040
- Their AGI
- Their taxable income
- and the following itemized deductions:
|
1. |
Allowable deduction on medical and dental expenses: |
|
|
2. |
Allowable deduction on taxes they paid |
|
|
3. |
Allowable deduction on Interest paid |
|
|
4. |
Allowable deduction on Gift to Charity |
|
|
5. |
Allowable miscellaneous deductions |
|
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Please answer these parts with the same information.
|
1. |
Allowable deduction on medical and dental expenses: |
|
|
2. |
Allowable deduction on taxes they paid |
|
|
3. |
Allowable deduction on Interest paid |
|
|
4. |
Allowable deduction on Gift to Charity |
|
|
5. |
Allowable miscellaneous deductions |
|
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