In 2015 John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1977), and Shannon's is 412-34-5671 (date of birth 11/3/1979). John and Shannon had qualifying health care coverage at all times during the tax year.
John's W-2 contained the following information:
Wages (box 1) = $66,346.74
Federal W/H (box 2) = $ 6,583.85
Social security wages (box 3) = $66,346.74
Social security W/H (box 4) = $ 4,113.50
Medicare wages (box 5) = $66,346.74
Medicare W/H (box 6) = $ 962.03
Shannon did not work for the year due to her medical condition but did receive unemployment compensation of $2,711 for the year with no federal withholding. In the same year, they had the following medical costs:
Shannon's prescribed diabetes medication $2,150
Shannon's hospital charges 8,350
Shannon's regular physician visits 835
Shannon's eye doctor 75
Shannon's diabetes blood testing supplies 185
Insurance reimbursements 1,910
In addition, they had the following other expenses:
State income taxes $2,950
Real estate taxes 1,170
Car loan interest 500
Personal property taxes 265
Cash charitable contributions 635
(made ratably throughout the year to their church)
Mortgage interest expense 7,970
Union dues for John 575
Tax preparation fees 175
Prepare a Form 1040 and Schedule A for the O'Banions using any appropriate worksheets. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers)
Use the appropriate Tax Tables.