Harry and Ginny Potter have been married for 24 years and have three children who qualify as
Question:
Harry and Ginny Potter have been married for 24 years and have three children who qualify as their dependents (Albus, 4; James, 16; and Lily, 19). The couple received salary income of $265,000 and they sold their home this year. They initially purchased the home 8 years ago for $220,000 and have lived in it ever since. They sold it for $690,000. They sold some stock they had owned for 4 years and had a $8,000 gain on the sale. The Potter’s also cashed in a Certificate of Deposit early during the year and paid a $950 penalty on the early withdrawal. Additionally, Harry (who teaches middle school) spent $875 on supplies and snacks for his classroom. The Solos accumulated $30,920 of itemized deductions and they had $31,550 withheld from their paychecks for federal income taxes.
gross income | |
deductions for AGI | |
adjusted gross income | |
standard deduction | |
itemized deductions | |
taxable income | |
tax liability | |
amount due or refund |
Use the table below to show what you did and did not include in Gross Income, Deductions and/or other items and your explanation. Feel free to add additional rows as necessary.
item | amount | explanation |
Income Tax Fundamentals 2014
ISBN: 9781285424545
32nd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill