Question

Taxpayers are married, both 35 years old with good eyesight. No dependents. • Husband is retired on disability • Wife is an Administrator of a local school. For 2018 she was paid as follows: o Salary $175,000 o Federal tax withheld $23,000 • Interest received on savings account $122. • Ordinary Dividends received (Not Qualified) $1,925 • Husband collected $27,222 in social security benefits. • They made the following payments during 2018: o Payments on car lease $8,250. o Medical expenses paid $8,725 o Real estate taxes on home $10,700 o Real estate taxes on Vacation home $4,125 o Real estate taxes on Daughters home $9,005 o Mortgage Interest (acquisition debt) on Vacation home $16,025 o NYS income taxes $12,500 paid from wages o April 2018 Paid NYS $1,070 for balance of 2017 taxes o Donated $1,375 cash to a qualified charity o Dog food cost $1,300 o Wife paid $3,600 in student loan interest (do those loans ever go away?) • Drove 400 miles for doctor visits and 600 miles for a charity • Taxpayers had health insurance coverage all year

Prepare an 2018 federal income tax return

Answer 1

Your Summary YOU MIGHT OWE: What you paid in taxes: What you should have paid in taxes: Tax credit you received this year: $23,000 $30,048 $0 $7,048 WHAT YOU TOLD US About You BASED UPON YOUR ANSWERS We have provided estimates of your tax outcome for this year and how tax reform could affect your outcome next year. Filing Status: Married Filing Jointly Taxable income $172,785 Number of Dependents: Adjusted Gross Income (AGI): $200,185 Number of Disabled Dependents: Greater of Itemized or Std. Deduction: $27,400 Your Income Qualified Business Income Deduction: Total Wages: $175,000 Federal Taxes Withheld: $23,000 Payments and Refundable Credits: $23,000 State Income Tax Withheld: Earned Income Credit: Self Employed Income: Additional Child Tax Credit: Spouse Self Employed Income: Refundable American Opportunity Credit: Unemployment Income: Healthcare Premium Credit: Other Income or Loss Not Listed Above: Federal Income Taxes Withheld: $23,000 Social Security Benefits: $27,222 Estimated Taxes: $0 Nontaxable Combat Pay: Taxes and Nonrefundable Credits: $30,048 Interest Income Earned: $122 State or Local Income Tax Refund: Regular Tax $30,048 Alternative Minimum Tax: Rent, Royalty and Passive Income: Ordinary Dividends: $1,925 Advance Premium Tax Credit - excess repayment: Qualified Dividends: 0 Child Care Credit: Held One Year or Less: 0 Credit for Other Dependents:

Your Income Taxes and Nonrefundable Credits: $30.048 Held More Than One Year: Your Expenses Nonrefundable American Opportunity Credit: Mortgage Interest: $16,025 Lifetime Learning Credit: Charitable Donations: $1,375 Child Tax Credit Medical Expenses: $8,725 Other Credits: Premium Tax Credit: Tax After Credits: $30,048 Shared Responsibility Payment: Self-Employment Tax Child Care Expenses: Medicare Sur Tax: Net Investment Tax: Student Loan Interest: $3,600 Undergraduate Degree Expense: Shared Responsibility Payment: Repayment of Homebuyer Credit: Federal Quarterly Taxes Paid: Other Deductions, Adjustments and Credits: Sales Taxes: Other State Or Local Taxes: $13,570 Real Estate Tax $9,005