Question: Need to complete a tax return on form 540 Schedule CA Bea and Bill Morris live inCA . They have one dependent child, Barbara, age

Need to complete a tax return on form 540 Schedule CA

Bea and Bill Morris live inCA . They have one dependent child, Barbara, age 2, and Bills parents Maggie and Mel Morris also live with them. Maggies income was $3,054 and Mels income was $3,066, and their combined income was less than half the cost of their support. The Morris federal adjusted gross income was $107,460. Included in that amount, are wages of $61,000 and $48,485, California income tax refund of $320, interest on a U.S. series HH bond of $165, capital gains of $2,090, and California lottery winnings of $400. They did not include interest income on City of Sacramento bonds of $625. They also had an IRA deduction of $5,000. Their federal itemized deductions included $11,350 for home mortgage interest, $3,200 for California income tax, $270 for State Disability Insurance, $82 for foreign income tax, $2,890 real property tax, $490 personal property tax on automobiles, $80 in gambling losses (California lottery), and $1,620 in charitable contributions. Bea and Bill paid $1,690 for child care expenses when Bills parents were unable to baby sit.

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