Based on the data below, you must determine the federal taxable income for the client for tax
Question:
Based on the data below, you must determine the federal taxable income for the client for tax year 2020.
Ben and Jamie Newton are a married couple that support Ben's parents who are in a nursing home. The parents are 70 years old and their only income is $10,700 social security, $2,000 interest income, and $1,200 dividend income.
Ben’s annual salary is $56,000, and Jamie’s annual salary is $41,000. They have two children that live at home.
Jamie receives stock dividends of $400 from stock she owned prior to marriage. In addition, she received $250 in dividends from a life insurance policy that she owned prior to marriage as well.
The couple received $650 in interest income from their savings account and $100 interest from state government bonds.
Ben is a bookkeeper and negotiates with his dentist to do dental worth valued at $2,000 in exchange for $1,000 worth of bookkeeping services.
They had $28,000 in itemized deductions.
