John and Mary Smith live at 100 Main Street in Boston, MA 02124. They are filing as a married couple.

They live with: John’s mother, Rosemary, their children, Robert, Alice, and Mary’s cousin David Jones.

Other than John and Mary, everyone else is single with no dependents of their own.

Person Social Security Number Date of Birth

John Smith 123-45-6789 02/02/1970

Mary Smith 987-65-4321 03/01/1971

Rosemary Smith 112-11-2233 02/05/1950

Robert Smith 542-91-1122 01/01/2005

Alice Smith 254-19-2211 02/01/2002

David Jones 456-78-1234 01/05/2000

Facts

Rosemary collects social security (below the level to be taxed on.) David is unemployed and has no earned or unearned income for 2020.

John and Mary received the first Economic Impact Payment of $2400 plus $500 for each qualifying child in 2020.

They also received the second Economic Impact Payment of $1200 plus $600 for each qualifying child in January 2021.

John and Mary are the members of the household who are employed. Their AGI for 2020 was $110,000. They provide more than 50% of the support for all members of the household. They do not contribute to the Presidential Election Campaign nor do they have any dealings in virtual currency; otherwise known as “Bitcoin.”

Lastly, there are no additional items of income, adjustments to income, or credits of any kind for them to use. They take the standard deduction.

Required:

Using the above information, prepare a Form 1040 up to Line 24 (Total Tax).

Answer rating: 100% (QA)

John and Mary Smith COMPUTATION OF TOTAL INCOME Salary Income John and Mary Smith 110000 Less Purcha... View the full answer