Question: Tax Return CA Problem 1 - 1 Need complete 2 0 2 4 form 5 4 0 please Required: Complete the tax return on 2

Tax Return CA Problem 1-1 Need complete 2024 form 540 please Required: Complete the tax return on 2024 Form 540, and Schedule CA (540). Annie and Arnold Morris live at 123 North Sherman St., Placerville, CA 95667. They have one dependent child, Barbara, age 4, and Arnolds parents Maggie and Mel Morris also live with them. Maggies income was $3,054 and Mels income was $2,066, and Annie and Arnold provided more than half the cost of their support. The Morris family federal adjusted gross income (AGI) was $106,460. Included in the AGI amount are Annies wages of $61,000 and Arnolds wages of $48,485, a California income tax refund of $320, interest received from a U.S. Savings bond of $165, long-term capital gains of $2,090, and California lottery winnings of $400. The federal AGI does not include interest income on City of Sacramento bonds of $625. They also had an allowable traditional IRA deduction of $6,000. Previously, in 2023, the Morris family used itemized deductions and got full advantage from State Income Tax paid. The Morris family decided to compare itemized deductions to the standard deduction for their federal income tax return so that they could select which option would be best. Their Federal itemized deductions totaled $25,770. Included was $13,150 for home mortgage interest (the mortgage loan balance on their residence averaged $415,000), $6,200 for California income tax (W-2s 2024 combined withholding), $1,095 for California State Disability Insurance (SDI), $3,890 real estate/property tax, $490 personal property tax on value of automobiles, and $2,620 in verifiable cash charitable cash contributions. In addition, the Morris family paid interest of $3,750 on their home equity loan. The loan balance averaged $75,000. They received the loan in 2018 and used the loan proceeds that year to purchase their dream sports car. All members of the household enjoyed a full year of qualifying California Health Insurance Coverage during 2024. The family does not owe any California use tax. The Social Security numbers are: Annie 111-22-3333(Birthdate 2/1/1983); Arnold 003-04-2020(Birthdate 1/1/1983); Barbara 333-44-5555(Birthdate 3/1/2018); Maggie 444-55-6666(Birthdate 4/1/1943); and Mel 555-66-7777(Birthdate 5/1/1943).

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