Mike E. Jones and Joan A. Baxter, each age 43, married on September 7, 2015. Mike and Joan will file a joint return for 2019. Mike's Social Security number is 111-11-1112. Joan's Social Security number is 111-11-1113, and she adopted "Jones" as her married name. They live at 201 Riverview Dr, Augusta, GA 30901.

• Since there is no mention of any dependents, what is their filing status?
• When entering the personal information for the taxpayers, it is VERY IMPORTANT to accurately type in their names, addresses, and social security numbers. If there are errors, the IRS may not be able to properly process the return.
• You will need to enter a date of birth for each taxpayer as the software will try to determine if the taxpayers are eligible for the ADDITIONAL standard deduction related to their age. As the taxpayers are 43, calculate the year they were born and just pick a date of birth in that year.

Mike was divorced from Sally Jones in March 2014. Under the divorce agreement, Mike is to pay Sally $2,000 per month for the next 8 years or until Sally's death, whichever occurs first. Mike pays Sally $24,000 in 2019. In addition, in January 2019, Mike pays Sally $50,000, which is designated as being for her share of the marital property. Also, Mike is responsible for all prior years' income taxes. Sally's Social Security number is 123-45-6788.

• Is Mike eligible to take a deduction for his payment to Sally for the $24,000 paid in 2019?
• Is Mike eligible to take a deduction for the $50,000 payment to Sally for her share of the marital property?
• If any of the payments qualify as alimony, alimony is entered in the Deductions area - “Adjustments to Income” in the “Less Common Scenarios” tab.

Joan recently graduated from law school and is employed by Legal Liability, Inc. (Federal I.D. No. 11- 1111111), as a prosecutor. She receives a salary of $45,000 in 2019. Her employer withheld $8,000 for Federal income taxes and $2,000 for state income taxes. The proper amounts were withheld for FICA taxes.

• Is Joan’s salary taxable? Which line should it be reflected on Form 1040?
• The taxes withheld must be entered into the tax software as well (Make sure you click the box indicating that this is the spouse’s W-2).
• Where do the Federal taxes withheld get reported on the tax return?
• Where do the state taxes withheld get reported on the tax return?

Joan has $1,000 in qualified dividends on Mesa Corporation stock she inherited.

• Are the dividends taxable? If so, where are they reported on Form 1040? Are they also reported on another schedule? Is there any special tax treatment since the dividends are qualified? Please note that when you are entering your qualified dividends in the software, you enter them twice - one as ordinary dividends and once as qualified dividends. The software is basically asking you, of all the ordinary dividends you received ($1,000), how much of them are qualified dividends subject to the preferential tax rates ($1,000)?
• Dividends are entered in the Income area - “Dividend Income.”

Mike and Joan receive a $1,800 refund on their 2018 state income taxes. They itemized deductions on their 2018 Federal income tax return (total of $17,000).

• Is the state tax refund included in income? If so, where is it reported on Form 1040?
• If it is taxable, click on “Tax Refund, Unempl. Comp. /1099-G” in the Income area. Scroll down to State and Local Refunds and enter the refund amount. Then click on State Refund Worksheet on the top right corner of this entry sheet. In the “Refunds Taxable in 2019 Overrides,” enter the refund amount in “Income tax refunds, if itemized last year.”

Mike and Joan pay $3,500 interest and $1,500 property taxes on their personal residence in 2019. Their charitable contributions total $9,500 (all to their church). They paid sales taxes of $1,500, for which they maintain the receipts.

• Can the taxpayers take deductions for their mortgage interest, charitable contributions, sales taxes, state income taxes (withheld as reported in earlier paragraphs)?
• Remember that the taxpayers must choose between taking the standard deduction or itemized deductions (the higher of the two). You are required to submit Schedule A regardless of whether the taxpayer claims the standard deduction or itemizes. Therefore, in the “Itemized Deductions (Sch A)” in the Deductions area, click on the “Less Common Scenarios” tab and enter 1 to “force Schedule A to print.”

Both spouses had health insurance for all months of 2019 and want to contribute to the Presidential Election Campaign.

• In order to elect contributions to the Presidential Election Campaign, click on “Misc. Info/Direct Deposit” in the General area. You will need to enter 3 in the “Presidential campaign” to indicate both would like to contribute.

REQUIRED:

THIS RETURN IS FOR 2019 – TAX LAWS IN EFFECT FOR 2019 WILL APPLY!

Compute the Jones' net tax payable (or refund due) for 2019.

Use Form 1040 and Schedule A, Schedule B and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return.

Complete the 2019 Federal tax return using 2019 Intuit ProConnect Tax Software.

Mike E. Jones and Joan A. Baxter, each age 43, married on September 7, 2015. Mike and Joan will file a joint return for 2019. Mike's Social Security number is 111-11-1112. Joan's Social Security number is 111-11-1113, and she adopted "Jones" as her married name. They live at 201 Riverview Dr, Augusta, GA 30901.

Since there is no mention of any dependents, what is their filing status?
When entering the personal information for the taxpayers, it is VERY IMPORTANT to accurately type in their names, addresses, and social security numbers. If there are errors, the IRS may not be able to properly process the return.
You will need to enter a date of birth for each taxpayer as the software will try to determine if the taxpayers are eligible for the ADDITIONAL standard deduction related to their age. As the taxpayers are 43, calculate the year they were born and just pick a date of birth in that year.
Mike was divorced from Sally Jones in March 2014. Under the divorce agreement, Mike is to pay Sally $2,000 per month for the next 8 years or until Sally's death, whichever occurs first. Mike pays Sally $24,000 in 2019. In addition, in January 2019, Mike pays Sally $50,000, which is designated as being for her share of the marital property. Also, Mike is responsible for all prior years' income taxes. Sally's Social Security number is 123-45-6788.

Is Mike eligible to take a deduction for his payment to Sally for the $24,000 paid in 2019?
Is Mike eligible to take a deduction for the $50,000 payment to Sally for her share of the marital property?
If any of the payments qualify as alimony, alimony is entered in the Deductions area - “Adjustments to Income” in the “Less Common Scenarios” tab.
Joan recently graduated from law school and is employed by Legal Liability, Inc. (Federal I.D. No. 11- 1111111), as a prosecutor. She receives a salary of $45,000 in 2019. Her employer withheld $8,000 for Federal income taxes and $2,000 for state income taxes. The proper amounts were withheld for FICA taxes.

Is Joan’s salary taxable? Which line should it be reflected on Form 1040?
The taxes withheld must be entered into the tax software as well (Make sure you click the box indicating that this is the spouse’s W-2).
Where do the Federal taxes withheld get reported on the tax return?
Where do the state taxes withheld get reported on the tax return?
Joan has $1,000 in qualified dividends on Mesa Corporation stock she inherited.

Are the dividends taxable? If so, where are they reported on Form 1040? Are they also reported on another schedule? Is there any special tax treatment since the dividends are qualified? Please note that when you are entering your qualified dividends in the software, you enter them twice - one as ordinary dividends and once as qualified dividends. The software is basically asking you, of all the ordinary dividends you received ($1,000), how much of them are qualified dividends subject to the preferential tax rates ($1,000)?
Dividends are entered in the Income area - “Dividend Income.”
Mike and Joan receive a $1,800 refund on their 2018 state income taxes. They itemized deductions on their 2018 Federal income tax return (total of $17,000).

Is the state tax refund included in income? If so, where is it reported on Form 1040?
If it is taxable, click on “Tax Refund, Unempl. Comp. /1099-G” in the Income area. Scroll down to State and Local Refunds and enter the refund amount. Then click on State Refund Worksheet on the top right corner of this entry sheet. In the “Refunds Taxable in 2019 Overrides,” enter the refund amount in “Income tax refunds, if itemized last year.”
Mike and Joan pay $3,500 interest and $1,500 property taxes on their personal residence in 2019. Their charitable contributions total $9,500 (all to their church). They paid sales taxes of $1,500, for which they maintain the receipts.

Can the taxpayers take deductions for their mortgage interest, charitable contributions, sales taxes, state income taxes (withheld as reported in earlier paragraphs)?
Remember that the taxpayers must choose between taking the standard deduction or itemized deductions (the higher of the two). You are required to submit Schedule A regardless of whether the taxpayer claims the standard deduction or itemizes. Therefore, in the “Itemized Deductions (Sch A)” in the Deductions area, click on the “Less Common Scenarios” tab and enter 1 to “force Schedule A to print.”
Both spouses had health insurance for all months of 2019 and want to contribute to the Presidential Election Campaign.

In order to elect contributions to the Presidential Election Campaign, click on “Misc. Info/Direct Deposit” in the General area. You will need to enter 3 in the “Presidential campaign” to indicate both would like to contribute.
REQUIRED:

THIS RETURN IS FOR 2019 – TAX LAWS IN EFFECT FOR 2019 WILL APPLY!

Compute the Jones' net tax payable (or refund due) for 2019.

Use Form 1040 and Schedule A, Schedule B and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return.

Mike E. Jones and Joan A. Baxter, each age 43, married on September 7, 2015. Mike and Joan will file a joint return for 2019. Mike's Social Security number is 111-11-1112. Joan's Social Security number is 111-11-1113, and she adopted "Jones" as her married name. They live at 201 Riverview Dr, Augusta, GA 30901.

• Since there is no mention of any dependents, what is their filing status?
• When entering the personal information for the taxpayers, it is VERY IMPORTANT to accurately type in their names, addresses, and social security numbers. If there are errors, the IRS may not be able to properly process the return.
• You will need to enter a date of birth for each taxpayer as the software will try to determine if the taxpayers are eligible for the ADDITIONAL standard deduction related to their age. As the taxpayers are 43, calculate the year they were born and just pick a date of birth in that year.

Mike was divorced from Sally Jones in March 2014. Under the divorce agreement, Mike is to pay Sally $2,000 per month for the next 8 years or until Sally's death, whichever occurs first. Mike pays Sally $24,000 in 2019. In addition, in January 2019, Mike pays Sally $50,000, which is designated as being for her share of the marital property. Also, Mike is responsible for all prior years' income taxes. Sally's Social Security number is 123-45-6788.

• Is Mike eligible to take a deduction for his payment to Sally for the $24,000 paid in 2019?
• Is Mike eligible to take a deduction for the $50,000 payment to Sally for her share of the marital property?
• If any of the payments qualify as alimony, alimony is entered in the Deductions area - “Adjustments to Income” in the “Less Common Scenarios” tab.

Joan recently graduated from law school and is employed by Legal Liability, Inc. (Federal I.D. No. 11- 1111111), as a prosecutor. She receives a salary of $45,000 in 2019. Her employer withheld $8,000 for Federal income taxes and $2,000 for state income taxes. The proper amounts were withheld for FICA taxes.

• Is Joan’s salary taxable? Which line should it be reflected on Form 1040?
• The taxes withheld must be entered into the tax software as well (Make sure you click the box indicating that this is the spouse’s W-2).
• Where do the Federal taxes withheld get reported on the tax return?
• Where do the state taxes withheld get reported on the tax return?

Joan has $1,000 in qualified dividends on Mesa Corporation stock she inherited.

• Are the dividends taxable? If so, where are they reported on Form 1040? Are they also reported on another schedule? Is there any special tax treatment since the dividends are qualified? Please note that when you are entering your qualified dividends in the software, you enter them twice - one as ordinary dividends and once as qualified dividends. The software is basically asking you, of all the ordinary dividends you received ($1,000), how much of them are qualified dividends subject to the preferential tax rates ($1,000)?
• Dividends are entered in the Income area - “Dividend Income.”

Mike and Joan receive a $1,800 refund on their 2018 state income taxes. They itemized deductions on their 2018 Federal income tax return (total of $17,000).

• Is the state tax refund included in income? If so, where is it reported on Form 1040?
• If it is taxable, click on “Tax Refund, Unempl. Comp. /1099-G” in the Income area. Scroll down to State and Local Refunds and enter the refund amount. Then click on State Refund Worksheet on the top right corner of this entry sheet. In the “Refunds Taxable in 2019 Overrides,” enter the refund amount in “Income tax refunds, if itemized last year.”

Mike and Joan pay $3,500 interest and $1,500 property taxes on their personal residence in 2019. Their charitable contributions total $9,500 (all to their church). They paid sales taxes of $1,500, for which they maintain the receipts.

• Can the taxpayers take deductions for their mortgage interest, charitable contributions, sales taxes, state income taxes (withheld as reported in earlier paragraphs)?
• Remember that the taxpayers must choose between taking the standard deduction or itemized deductions (the higher of the two). You are required to submit Schedule A regardless of whether the taxpayer claims the standard deduction or itemizes. Therefore, in the “Itemized Deductions (Sch A)” in the Deductions area, click on the “Less Common Scenarios” tab and enter 1 to “force Schedule A to print.”

Both spouses had health insurance for all months of 2019 and want to contribute to the Presidential Election Campaign.

• In order to elect contributions to the Presidential Election Campaign, click on “Misc. Info/Direct Deposit” in the General area. You will need to enter 3 in the “Presidential campaign” to indicate both would like to contribute.

REQUIRED:

THIS RETURN IS FOR 2019 – TAX LAWS IN EFFECT FOR 2019 WILL APPLY!

Compute the Jones' net tax payable (or refund due) for 2019.

Use Form 1040 and Schedule A, Schedule B and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return.

Answer rating: 100% (QA)

The filing status for Mike E Jones and Joan A Baxter is married filing jointly To complete the tax r... View the full answer