47 Chapter 8 Comprehensive Problem.

Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit (Ch. 9), and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020.

Andys salary	$50,000
Federal income tax withheld	4,000
Marcias salary	42,000
Federal income tax withheld	5,000
Andys contribution to an IRA (assume IRA is deductible for AGI)	2,000
Dividends received from domestic corporations	950
Medical expenses for doctors and hospitals	8,200
Premiums for health insurance	2,600
Prescription drugs and medicines	800
Eyeglasses for one of the children	175
Interest on home mortgage	12,800
Interest on credit cards	300
Real property taxes on residence	6,300
State income taxes	5,800
Fee for preparation of tax returns	125
Union dues and subscriptions	480

Requires you to prepare 1040

Schedule A Itemized deduction