Neither Joe nor Jessie is blind or over age 65, and they plan to file as...

Transcribed Image Text:

Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer port the self-employment tax on Jessie's income is $729. Joe and Jessie have summarized the income and expenses th expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) $ 145,400 18,530 1,780 742 946 $ 13,700 6,660 7,534 6,460 336 1,280 27,300 2,560 1,820 2,660 5,690 158 Travel and lodging for craft shows 2,360 Self-employment tax on Jessie's craft income 1,458 College tuition paid for Lizzie 6,040 Interest on loans to pay Lizzie's tuition 3,460 Lizzie's room and board at college 12,880 Cash contributions to the Red Cross 590 Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts a. Determine Joe and Jessie's AGI and taxable income for the year. Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer port the self-employment tax on Jessie's income is $729. Joe and Jessie have summarized the income and expenses th expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) $ 145,400 18,530 1,780 742 946 $ 13,700 6,660 7,534 6,460 336 1,280 27,300 2,560 1,820 2,660 5,690 158 Travel and lodging for craft shows 2,360 Self-employment tax on Jessie's craft income 1,458 College tuition paid for Lizzie 6,040 Interest on loans to pay Lizzie's tuition 3,460 Lizzie's room and board at college 12,880 Cash contributions to the Red Cross 590 Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts a. Determine Joe and Jessie's AGI and taxable income for the year.