The following facts relate to Mary M. (SSN 123-45-6789) and Marty M. (SSN 987-65-4321) McKinney, both age 28 who were married on 1/18/2019 and want to file a joint return. The couple resides at 654 Montana St., Columbia, SC 29201 with their 9-month-old dependent son, Mack M. (SSN 654-32-1987). Prepare the McKinney’s 2019 Excel planning file and their tax return including the Form 1040, Schedule 1, and Schedule A. Prepare the tax forms in the following order after creating your Excel planning file:

1. Form 1040 through line 7b,
2. Schedule 1 including the student loan interest worksheet from page 90 of the instructions,
3. Form 1040 through line 8b,
4. Schedule A,
5. Remaining Form 1040 lines including the Qualified Dividends and Capital Gain Tax Worksheet from page 33 of the instructions to calculate their tax for line 12a and the Child Tax Worksheet from page 39 of the instructions to calculate the credit for line 13a.

Given Info for the family –

The couple received:

Salary ($70,000 each) $140,000

Interest Income (Do not complete Schedule B):

Taxable 3,100

Exempt 1,200

Dividend Income (Do not complete Schedule B):

Nonqualified Dividends 200

Qualified Dividends 5,000

Total Ordinary dividends 5,200

The couple paid:

Individual Retirement Account (IRA) Contribution/Deduction (not distribution)

since they weren’t covered by an employer retirement plan 5,000

Student loan interest on loan which was used to fund the wife’s college tuition 2,800

Medical bills not covered by insurance 3,000

State income taxes 8,400

State real estate taxes 2,500

State sales taxes, actual 1,100

Home mortgage interest on first home purchased in 2019 for $250,000

Reported to the couple on a form 1098 6,000

8% tithe to the church (they have documentation from the charity) 11,200

Federal Income Taxes Withheld from Salaries 14,500

The couple drove:

175 miles for medical care (2019 medical mileage rate is $0.20)

1,000 miles to deliver food for the local food panty to shut ins (2019 charitable mileage rate is $0.14)

Answer rating: 100% (QA)

SOLUTION McKinneys Tax Return for 2019 Form 1040 Schedule 1 Line No Description Amount 1 Additional ... View the full answer