1. Complete a 2019 tax return for Matt and Amy

• Both taxpayers are 43 years old, and have MFJ status.

• They have three minor dependent children

• The couple received life insurance proceeds from a friend who passed away of $154,000

• Marks 2019 salary was $375,000, and his employer withheld $110,000 for federal taxes, and $8,900 for state taxes. In addition, the appropriate amount of social security and Medicare taxes were withheld (6.2% of 132,900 and 1.45% of 375,000).

• Alices 2019 salary was $300,000, and her employer withheld $79,000 of federal and $10,100 of state taxes. In addition, the appropriate amount of social security and Medicare taxes were withheld (6.2% of 132,900 and 1.45% of 300,000).

• None of a potential additional Medicare tax was withheld from either taxpayer

• The couple earned $4,000 of interest income from corporate bonds, and another $1,900 of interest income from municipal tax-free bonds

• They received $6,000 in dividends on Blue Corporation stock. These dividends are qualified dividends. They also received $2,300 of non-qualified dividends

• They contributed 5,000 to an IRA

• The couple sold Google stock for $81,000; they paid $40,000 for the stock 12 years ago.

• The couple paid $25,000 in mortgage interest

• They paid $18,000 in local property taxes

• Medical expenses paid during the year were $15,500

• Charitable contributions were $4,800 during the year.

• Unreimbursed job expenses were $3,800

1. Break down how much tax was saved by having a lower rate on capital gains and dividends (the tax owed before additional Medicare and NIIT)