Question

Max and Michelle are married and earned salaries this yesr of $64,000 and $12,000. They also received interest of $350 from municipal bonds ans $500 from corporate bonds. max contributed $2,500 to an individual retirement account. He also paid alimony to a prior spouse in the amount of $1,500. Max and Michelle have a 10 year old son who lived with them the entire year. They are allowed to claim $2,000 chikd tax credit for him. They paid $6,000 of expenditures that qualify as itemized deductions ans they had a total of $5,500 in federal income taxes withheld from their paychecks. Complete the first two oages of Max and Michelle's Form 1040. Ise the most revent form available.

Answer 1

Description	Amount	Computation
(1) Gross income	76,500	$64,000 salary + $12,000 salary + $500 corporate bond interest
(2) For AGI deductions	4,000	2,500 IRA contribution + 1,500 alimony paid
(3) Adjusted gross income	72,500	(1) – (2)
(4) Standard deduction	24,000	Married filing jointly
(5) Itemized deductions	6,000
(6) Greater of standard deduction or itemized deductions	24,000	(4) > (5)
(7) Taxable income	$48,500	(3) - (6)
(8) Income tax liability	$5,439	(48,500 – 19,050) × 12% + 1,905 (see tax rate schedule for married filing jointly).
(9) Credits	(2,000)	Child credit for 10-year old son Matthew
(10) Prepayments	(5,500)
Taxes (refund) with return	($2,061)	(8) + (9)+ (10)

1040 U.S. Individual Income Tax Retum 2017 C. 4 1 14H LUA Seewaterstructions வாயார்யார் ارواح عاريا Sport 2 2 alaala น L'intrame and Taxpayer Home brand you have a bado 1234 Any Street Gyer do outro di Any Town. Any State, 12345 Tragicourtya Forlig prominent county and on the end Trap 196 Filing Status 1 Single Head of others) 2 Married fling jointly even if only one had income Check only one 3 Married fling separately. Entor spouse's SSN above and name here 5 Qui Exemptions Yourself someone can claim you as a dependent, do not check box be Bon checked Spouse e Dependent ved you . Matthew Taxpayer 333443555 Son more than four dependent, see structions and check here A d Total number of emotions claimed Income 7 Wages, salarios, tips, etc. Attach FormW-2 76,000 da Taxable interest. Attach Schedule Broquired Sod Tempest. Do not include online de Attach Form W-2 here. Also e Ordinary dividends. Attach Schedule Brequired attach Forms Qualified dividends W-20 and 10 Table rounds, creditor ofte and local income 1000 R tax 11 Almony received 11 12 Business income oro. Attach Schedule CorCEZ 13 Capital gain or for Attach Schedule Drequired. not required, check here ► O you did not gut a W-2 14 14 Other gains aromes Attach Form 4797 se instructions 15 A distributions Tout 16 Pensions and we 16 Toort 16 17 Rental real estate, royalties, partnership, corporation, trusts, etc. Attach Schedule E 17 18 Farm income or Attach Schedule F 18 19 Unemployment companion 20a Social security belts 200 Tout 21 Other income List type and amount 21 22 Combine the most com nes through 21. This is your total income 76.50 23 Edworpen Adjusted 24 Carton business propuertoming and Gross obis mortos tachom 2002 Income Health saving count deduction Attach Form 3000 26 Moving exper Anachom 300 27 Dec pertolply. Anach Schedule SE 23 Self-employed SEP, SIMPLE, and qualified plans 20 29 Semployed health insurance deduction 30 Penalty on early withdrawal of savings 310 Aimary peid recipients SSN 14 skses 310 32 A deduction 33 Student loan interest deduction 24 Reserved for use 34 Domestic production actie deduction Arch For 2203 Add 23 rough 35 4.000 Subtractine 36 from the 22. This is your sted gross income 72.500 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, separate instruction Cat No 13000 Form 1040 2017) 19 b 2

• Alothes Form 1000 017) Page 2 Amount from line 37 asted gross income 72.500 Tax and 3 Check You were bom before January 2, 1953, Sind Total boxes Credits Spouse was bom before January 2, 1953, Bind.checked 30 If your spouse tamizas on a separate return or you were a dual status alien, check here 300 Standard 40 Itemized deductions from Schedule A or your standard deduction selott margin 40 24.00 Deduction or Subtract line 40 trom line 38 41 ER SO • People who 2 Deduction for qualified business income checkery Doronto Taxable income. Subtract line from line 41. line 62 is more than line 41, enter ER 50 Sor Sor 44 44 Tax instruction. Check it any from a Form) 8814 Form 1972 e who can be 50 came 46 Alternative minimum tax see instructions). Attach Form 6251 45 cendent 46 Excess advance premium tax credit repayment. Attach Form 1962 structions Add line 44, 45, and 46 47 5.435 Foreign tax credit. Attach Form 1116 if required Single Marding 49 Credit for child and dependent care expenses Attach Form 2441 49 550 Education credits from Form 3863, line 19 Marrading 51 Retirement savings contributions credit. Attach Form 3880 51 Child tax credit. Attach Schedule 8812, if required 52 2.000 wort $12,700 Residential energy credit. Attach Form 5005 53 Head of 54 Other credits from form38000 noushold S350 Add lines 18 through 54. These are your total credits 2000 56 Subtract line 55 from line 47. Wine 55 is more than line 47. enter- 57 Self-employment tax. Attach Schedule SE 57 Other 58 Unreported social security and Medicare tax from Form 4137 2019 SB Taxes SO Additional tax on RAR, other qualified retirement plans, etc. Attach Form 5399 required 60a Household employment are from Schedule 60a Frat-time homebuyer credit repayment. Attach Form 5405 required 600 61 Heath care individual responsibility (now instruction) Full-year coverage 61 Taxes from For 106 Form8060 Instructions enter codes Add line 56 through. This is your total tax 63 Payments Federal income tax withhold from Fome W2 und 1000 5500 2017 estimated tax payments and amount applied from 2016 retum you have a sa Eamed income credit (EIC) qualifying child, attach Nortable combat pay election Schedule EIC 67 Additional child tax credit. Attach Schedule 6012 American opportunity credit from Form 3863, line Not premium tax credit Altach Form 1962 69 70 Amount paid with request for extension to file 70 71 Ex social security and for 1 RRTA tax withheld 71 Credit for federal tax on fuels. Attach Form 6136 72 OudtstonFone 2008 do 74 Add line 64, 65, 66, and 67 through 73. These are your total payments 74 5.500 Refund 75 line 76 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 75 2051 76 Amount of line 75 you want refunded to you. Form 8888 is attached, check here 789 2051 Drac D Routing number Chepking Springs d Account number tructions 77 Amount of line 75 you want applied to your 2018 estimated tax 77 Amount 78 Amount you owe. Subtractine 74 from line 63. For details on how to pay, se instructions You Owe 70 Estimated tax penalty free instruction) Third Party Do you want to allow another person to discuss this retum with the RS ne instruction? Yes. Completo below. No Designee Designers Phone Personation Sign Underdele and women, de bedrywende come und ung Here wwwwwww www. Your Your occupation Daytime phone number Spouse's occupation you any con Date Spouse's jorum, both you Paid Penttype prepararname Prepare Preparer Use Only Go to www.gou Pom for instructions and the latest Information m's EN Form 1040 2017)