Question: Comprehensive Problem 6-63 (LO 6-1, LO 6-2, LO 6-3) (Algo) [The following information applies to the questions displayed below.] Joe and Jessie are married and

![following information applies to the questions displayed below.] Joe and Jessie are](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/10/6719e437da515_0716719e43749f2d.jpg)



Comprehensive Problem 6-63 (LO 6-1, LO 6-2, LO 6-3) (Algo) [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. Jessie's 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 Ioan (balance of $220,000 ) and a personal loan to pay for Lizzie's 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 Jessie's income is $837. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages state income tax withheld from Joe's wages Social security tax withheld from Joe's wages Real estate taxes on residence 129,700 18,460 1,710 728 932 Automobile licenses (based on weight) $13,700 state sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) 6,520 7,506 6,320 322 1,210 16,600 2,420 1,750 cost of Jessie's craft supplies 2,520 Postage for mailing crafts 4,920 Travel and lodging for craft shows 151 Self-employment tax on Jessie's craft income 2,290 College tuition paid for Lizzie 1,674 Interest on loans to pay Lizzies tuition 5,900 Lizzies room and boand at college 3;320 Cash contributions to the Red Cross 12,740 555 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. Nomes, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tox rules regardless of year on form.) Joe's address is 19010 N.W. 135 th Street, Miami. FL 33054. Social security numbers: Joe: 111-11-1111 Jessie: 123456789 Required information
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
