Assignment
Following is a list of information for Peter and Amy Jones for the current tax year. Peter and Amy are married and have three children, Aubrynne, Bryson, and Caden. They live at 100 Main Street, Anytown, USA 00000. 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:
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TAX FORM/RETURN PREPARATION PROBLEMS
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S.S. No.
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Age
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Peter
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111-11-1111
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32
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Amy
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222-22-2222
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28
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Aubrynne
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333-33-3333
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5
|
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Bryson
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444-44-4444
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3
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Caden
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555-55-5555
|
1
|
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Receipts
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|
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Peter's salary
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$70,000
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|
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Amy's salary
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32,000
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|
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Interest income on municipal bonds
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2,400
|
|
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Interest income on certificate of deposit (Universal Savings)
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3,100
|
|
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Dividends on GM stock
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1,600
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|
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Disbursements
|
|
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Eyeglasses and exam for Aubrynne
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$ 600
|
|
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Orthodontic work for Bryson to correct a congenital defect
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2,500
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|
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Medical insurance premiums, after-tax basis
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1,800
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|
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Withholding for state income taxes
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7,200
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|
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Withholding for federal income taxes
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16,000
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|
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State income taxes paid with last year's tax return (paid when the return was filed in the current year)
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500
|
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Property taxes on home
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1,100
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|
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Property taxes on automobile
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300
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Interest on home
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9,700
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Interest on credit cards
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200
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Cash contribution to church
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3,900
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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.