Homework answers / question archive / Federal Taxation I Module 8: Comprehensive Tax Return Project Jared and Ashley have come to you for help filing their 2019 tax return

Federal Taxation I Module 8: Comprehensive Tax Return Project Jared and Ashley have come to you for help filing their 2019 tax return

Law

Share With

Federal Taxation I Module 8: Comprehensive Tax Return Project Jared and Ashley have come to you for help filing their 2019 tax return. They are married on December 31, 2019 and are both age 40. They live with their three qualifying children, Nick, Betty, and Roger, who are 12, 14, and 17 years old, respectively. They have made the following requests: • They wish to file a joint tax return. • If they overpaid their taxes this year, they would like to receive half as a refund and have half applied to next year's federal tax return. Jared and Ashley have the following income items during 2018: • Jared's wages of $50,000 • Jared's unemployment compensation of $5,000 • Ashley's wages of $60,000 • Interest from a city of Chicago bond of $2,000 • Interest from a corporate bond of $3,000 • Ordinary dividends of $2,000 • Gift from Leonard's father of a new computer that cost $3,000 • A $3,000 refund from the State of Illinois for income taxes paid in 2018 Jared and Ashley incurred the following expenses/losses during 2019: • Contributions of $5,500 to each of Jared and Ashley's traditional IRAs, i.e., $11,000 total (they are not covered by any other qualified retirement plans) • Qualified medical expenses of $9,000 • Personal credit card interest expense of $8,000 • Charitable contributions of $4,000 • Ten $25 parking tickets totaling $250 • Mortgage interest on primary residence of $8,000 (mortgage is $200,000) • Property taxes on the primary residence of $6,500 • Illinois state and local income taxes paid of $5,500 • Federal tax withholding on Jared and Ashley's W-2s of $10,000 They also provide you with the following information about their prior year return: • On their prior year federal tax return, they claimed itemized deductions. • Jared and Ashley elected to have $139 of their 2017 tax refund applied to 2019.
I need help finding the total income for this exercises. I came up with multiple amount but it still not correct. I got the wages correct 50000+60000= 110000. But the total income is coming wrong on all of them
-first attempt: 110000+3000+3000=116000
-second : 110000+ 3000+3000+5000=121000
-third : 110000+3000+3000+5000+2000+139=123139

Please help me calculate the total tax, the amount they want refunded, the amount they overpaid, and the amount they want applied to 2019 taxes.