Use the following information to prepare 2017 Form 1040 and Schedules A and D for the Jessups.
The required forms can be obtained from the IRS website (www.irs.gov). Helpful instructions for completing the forms can also be obtained from this site.
Facts:
1. David and Cora Jessup are married and file a joint return. They live at 316 First Street, Broken Arrow, OK 74011. David was born 3/14/72, and his social security number is 445-28-0411. Cora was born 1/15/74, and her social security number is 442-38-9511. They have one son, Mark, who is was born July 25, 2003. He lived with them all year in 2017, and his social security number is 441-02-5115. They also have a daughter who was born on March 6, 2008. Her social security number is 441-77-4410. She also lived with them all year. Everyone in the household had minimum essential insurance coverage for the entire year.
2. David is a librarian. His W-2 shows wages of $36,000, federal withholding of $2,200, and Oklahoma withholding of $760. Cora is a teacher. Her W-2 shows wages of $45,000, federal withholding of $3,600 and Oklahoma withholding of $1,800.
3. The Jessups received $220 in interest from the TTCU Credit Union, and $500 interest from an investment in Oklahoma Municipal Power Authority bonds.
4. The Jessups received for Form 1099-B from their broker, which reported two sales of stock:
200 shares of ATL stock – Date of sale 8/12/17, Proceeds $4,000
Date of purchase 2/12/17, Cost basis $1,800
400 shares of IMC stock – Date of sale 9/30/17, Proceeds $8,000
Date of purchase 10/11/10, Cost basis $12,000
Both of these were covered transactions, with tax basis reported to the IRS.
5. David and Cora each contributed $2,500 to their traditional IRA accounts.
6. Cora paid $2,700 in interest on student loans.
7. The Jessups paid $2,200 in property taxes on their home. They also paid a balance due of $525 in state income taxes when they filed their Oklahoma tax return in April 2017.
8. They paid $5,250 in home mortgage interest. They also paid $300 in loan margin interest to their broker.
8. They contributed $1,800 to their church, and $800 to their alma mater, Northeastern State University.
9. They also had the following expenses:
Cora paid $690 in dues to the OEA.
David paid $720 in dues to Professional Librarians Association.
They paid $500 to have their 2016 taxes prepared.
They paid $200 in fees to the broker who managed their account.