Kevin (SS# 123-45-6789) and Michelle (SS# 987-65-4321) Johnson are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Kevin received $900 in disability insurance payments from a work-related injury. Michelle also received $10,000 as an Annual Director Fee. Kevin and Michelle have a 10-year old son, Matthew (SS# 540-67-9921), who lived with them throughout the entire year. Thus, Kevin and Michelle are allowed to claim the child tax credit. Kevin and Michelle paid $6,000 of expenditures that qualify as itemized deductions, of which $520 were cash donations. They had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. 

Michelle is also 50% partner in Passports, Inc. Michelle’s Schedule K-1 showed the following information:

Ordinary Income (Non-passive) $2,900

Interest Income                                $110

Ordinary (Qualified) Dividend     $40

Cash Distribution                              $1,000

The Johnson’s live at 1759 S Jameson Ln, Montecito, CA 93108

Prepare a Schedule E, Schedule B and Form 1040 with any applicable schedules (1-3).

Answer rating: 100% (QA)

Since we are not given any specific year I will use the 2021 tax schedule Amount S 64000 12000 500 ... View the full answer