Comprehensive Problem 6-63 (LO 6-1, LO 6-2, LO 6-3) (Algo)

Skip to question

[The following information applies to the questions displayed below.] Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessies craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzies college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessies income is $841. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:

Income:
Joes salary	$ 130,100
Jessies craft sales	18,500
Interest from certificate of deposit	1,750
Interest from Treasury bond funds	736
Interest from municipal bond funds	940
Expenditures:
Federal income tax withheld from Joes wages	$ 13,700
State income tax withheld from Joes wages	6,600
Social Security tax withheld from Joes wages	7,522
Real estate taxes on residence	6,400
Automobile licenses (based on weight)	330
State sales tax paid	1,250
Home mortgage interest	17,000
Interest on Masterdebt credit card	2,500
Medical expenses (unreimbursed)	1,790
Joes employee expenses (unreimbursed)	2,600
Cost of Jessies craft supplies	5,360
Postage for mailing crafts	155
Travel and lodging for craft shows	2,330
Self-employment tax on Jessies craft income	1,682
College tuition paid for Lizzie	5,980
Interest on loans to pay Lizzies tuition	3,400
Lizzies room and board at college	12,820
Cash contributions to the Red Cross	575

Comprehensive Problem 6-63 Part-b (Algo)

b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A.

(Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.)

Joes address is 19010 N.W. 135th Street, Miami, FL 33054.

Social security numbers:

Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123

What is the student loan interest deduction? I need it for Line 20 of my 1040 Schedule 1.