Derrick and Ani Jones are married taxpayers, filing jointly and have a son named Jackson. They live
Question:
Derrick and Ani Jones are married taxpayers, filing jointly and have a son named Jackson. They live at 474 Rustic Drive, Spokane, WA 99201. Ani works as the director of information systems at Washington Community College District (WCCD). Derrick is a stay-at-home dad. Their SSNs are Derrick, 412-34-5670; Ani, 412-34-5671; and Jackson, 412-34-5672. Their birth dates are as follows: Derrick, June 7, 1977; Ani, March 20, 1978; and Jackson, October 10, 2010. The Joneses own their home and paid $15,000 in mortgage interest during the year to Chase Bank and property taxes of $3,200. They are entitled to a $1,349 general sales tax deduction. Assume they have no other deductible expenses. The Form W-2 Ani received from WCCD contained the following information:
| Wages (box 1) | = | $ | 79,002.50 |
| Federal W/H (box 2) | = | $ | 8,000.14 |
| Social security wages (box 3) | = | $ | 79,002.50 |
| Social security W/H (box 4) | = | $ | 4,898.16 |
| Medicare wages (box 5) | = | $ | 79,002.50 |
| Medicare W/H (box 6) | = | $ | 1,145.54 |
In addition, the Joneses own a small four-unit rental at 12345 Rainbow Way, Sultan, WA 98294. The rental was purchased and placed in service on July 1, 2005, and was rented for the entire year. The following income and expense information relates to the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations.
| Rental income | $ | 24,000 | |
| Real estate taxes | 2,000 | ||
| State sales taxes | 1,349 | ||
| Utilities | 1,500 | ||
| Mortgage interest | 3,800 | ||
| Depreciation | 7,200 | ||
| Repairs and maintenance | 1,300 | ||
Prepare the Joneses’ federal tax return for 2017. Use Form 1040, Schedule A, Schedule E, and any other appropriate schedules. Assume they do not qualify for any credits other than the child care credit. If using tax software, the software will calculate Child Tax Credit automatically. The taxpayers had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount.)
Use the appropriate Tax Tables.
Expert Answer:
Brock Biology of Microorganisms
ISBN: 978-0321897398
14th edition
Authors: Michael Madigan, John Martinko, Kelly Bender, Daniel Buckley
