We are at the end of the fiscal year, and Kate and Sam Smith need your help preparing the "Form 1040" and "Schedule A" forms.
 
Kate Smith, social security number (SS # 555-55-5555) 
Sam Smith, Social Security Number (SS# 444-44-4444) 
 
Address: 33 Oak Street Drive 
San Diego, Calif. 91911 
 
The age and filing status of the taxpayers is: 52 years of age, filing jointly, with two minor children, dependents: 
 
Elizabeth Smith (SS#333-33-3333) 
 
Jonathan Smith (SS# 222-22-2222) 
 
Additional data; 
 
Gross income is $170,350.00 
 
Mortgage interest expense $18,500.00 
 
Property tax expenses (main residence) $4,500.00 
 
Interest expense on credit cards $3,900.00 
 
Kate's Student Loan Interest Expense $2750.00 
 
Medical expenses $35,000.00 
 
Reimbursement received from the health insurance company for $18,000.00 
 
Donation to the Salvation Army in cash for $1,900.00 
 
Donation to Goodwill of clothing and furniture ($300.00 value), for $650.00 
 
Donation of clothing and furniture to friends for $150.00 
 
 
 
For this fiscal year, Kate got a new job, and the entire family moved to another city. The new job is located in the same state, but 650 miles further from the house where they lived before moving. 
 
The family had the following expenses: 
 
Trip to search for the new house $700.00 
 
Moving company $2,800.00 
 
Lunches and dinners during the trip $50.00 
 
 
 
Hotels $75.00 
 
Finally, Sam Smith paid the employee union $600.00; and $250.00 for preparing income taxes for your accountant.