7-63 Following is a list of information for Peter and XXXXX XXXXX for the current tax year. Peter and Amy are married and have three children, Aubrynne, Bryson, and Caden. They live at XXXXX Lakeville, MN 55022. Peter is a lawyer working for a Native American law firm. Amy works part-time in a genetic research lab. The Jones' Social Security numbers and ages are as follows:
Peter XXX-XX-XXXX 32
Amy XXX-XX-XXXX 28
Aubrynne XXX-XX-XXXX 5
Bryson XXX-XX-XXXX 3
Caden XXX-XX-XXXX 1
Peter's salary $70,000
Amy's salary 32,000
Interest income on municipal bonds 2,400
Interest income on certificate of deposit (Universal Savings) 3,100
Dividends on GM stock 1,600
Eyeglasses and exam for Aubrynne $ 600
Orthodontic work for Bryson to correct a congenital defect 2,500
Medical insurance premiums 1,800
Withholding for state income taxes 7,200
Withholding for federal income taxes 16,000
State income taxes paid with last year's tax return
(paid when the return was filed in the current year) 500
Property taxes on home 1,100
Property taxes on automobile 300
Interest on home 9,700
Interest on credit cards 200
Cash contribution to church 3,900
In addition to the above, on September 17, Peter and Amy donate some Beta Trader, Inc. stock to Lakeville Community College. Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $700. Peter and Amy had purchased the stock
on November 7, 2003 for $300.
Compute Peter and Amy's income tax liability for the current year using Form 1040, Schedules A and B, and Form 8283, if necessary. I need this by Saturady 2/18/2012. Will pay bonus