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:

Receipts
Peter's salary.......................................................................................$70.000
Amy's salary.........................................................................................32.000
Interest income on municipal bonds...............................................................2.400
Interest income on certificate of deposit (Universal Savings) .................................3.100
Dividends on GM stock............................................................................................1.600
Disbursements
Eyeglasses and exam for Aubrynne..........................................................................$ 600
Orthodontic work for Bryson to correct a congenital defect...................................2.500
Medical insurance premiums, after-tax basis.....................................................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.

Transcribed Image Text:

S.S. No. Name Age 32 Peter 111-11-1111 Amy 222-22-2222 28 Aubrynne 333-33-3333 5 Bryson 444-44-4444 3 Caden 555-55-5555 LO Receipts 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 Disbursements Eyeglasses and exam for Aubrynne $ 600 Orthodontic work for Bryson to correct a congenital defect 2,500