Jack and Jill Eggolton both age 49 have 3 children, Carol age 5, David age 15 and Sue age 17. Jack works for Verizon Telecommunications Corporation makes a salary of $90,000.00 and has withholding's of $13,300. Jill works for the state of New Jersey, has a salary of $24,000.00 and has $2,560.00 withheld. They make contributions of $5000.00 per year to Loyola University Maryland, since this is where Jack and Jill met, and both graduated from. Jill sold her personal use automobile for $15,000.00, which she purchased for $25,000.00 only 4 years prior, according to Kelly’s Blue Book the FMV of the automobile at this time is $16,450.00. They paid $22,680.00 in mortgage interest from their first and second mortgages, as well as $9,900.00 in real estate taxes for their 4-bedroom home, in which Jack has a home office which is used solely for the convenience of Verizon since his job demands are international. Jack and Jill sold property that Jill had inherited from her brother for $12,500.00, while the fair market value was $10,000.00 at the time of Jill’s brother’s death and his basis for the property was $7,500.00. Carol needs care while both Jack and Jill work, which costs $9,325.00 for the year. Since Sue is almost finished with High School and planning for college. Jack and Jill have been investigating their options for paying for college but need more information about any other options which might be new with this recent tax overhaul, which will be beneficial in their current situation. For the past year their home utilities cost them $1,400.00 in electricity, $4,400.00 in oil to heat their home, and $1,345.00 in gardening costs. Jack likes to gamble and does well, he travels to Atlantic City to visit the casinos at least 6 times a year. This year he won $29,848.00 in one hand of blackjack and the casino made him fill out paperwork before he could cash in his chips, to win this amount he believes that he spent $832.00. The rest of the year he pretty much broke even, and the casino did not have him fill out any paperwork. Jill’s mother Tilly lives with them and they pay for her medical prescriptions and doctor visits since she is on a fixed income. Her prescriptions come out to $112.00 a month and a once a month visit to the doctor’s office costing a $30.00 copay. Jill doesn’t mind driving Tilly the 42 miles one way to the doctor’s office since her mother is 72 years old. Her mother receives $1,873.00 a month from social security and railroad retirement benefits of $892.35 a month, from when she was a conductor in the old and angry Appalachian Valley. This is Jill’s second marriage, and she had a messy divorce; she pays alimony to Ted her first husband equaling $932.00 a month and claims the son they had together, Benny age 19. Benny attends Penn State University and works as a laundry room attendant at the “Soap & Suds” laundromat and pet grooming service company, earning $7,320.00 in 2021. His tuition is paid by Jill through student loans, the loans principle is $32,467.00 and the interest is $1,176.00 for the year.

A) Prepare Jack and Jill’s 2021 tax return as well as Tilly’s.

Answer rating: 100% (QA)

Jack and Jill s 2021 Tax Return In come Jack s salary 90 000 J ill s salary 24 000 L oy ola Un... View the full answer