I need help with For AGI and From AGI see calculations below Alice (age 46)...
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I need help with For AGI and From AGI see calculations below
Alice (age 46) and Bruce Byrd (age 48) are married, live in Oklahoma, and file a joint return. Alice is the office manager for Smiles Dental Clinic and Bruce teaches. The following info is from their 2020 W-2s. Line Description Alice Bruce 1 Wages, tips, other compensation 64,000 56,000 2 Federal income tax withheld 5,100 4,800 3 Social Security wages 64,000 56,000 4 Social security tax withheld 3,968 3,472 5 Medicare wages and tips 64,000 56,000 6 Medicare tax withheld 928 812 7 State wages, tips, etc. 64,000 56,000 8 State income tax withheld 3,250 2,800 The Byrds provided over half of the support for their two children, Joan (age 25) and Frank (age 22). Both children are full-time students and live with the Byrds except when they are away at college. Joan earned $6,700 from a summer internship in 2020, and Frank earned $3,800 from a part-time job. During 2020, the Byrds provided 60% of the total support of Bruces mother, Myna Byrd (age 78). Myna lived alone and covered the rest of her support with her only source of income, Social Security benefits. None of Mynas Social Security benefits are taxable in 2020. Myna died in November of 2020. Bruce, the beneficiary of a policy on Mynas life, received life insurance proceeds of $200,000 on December 28th, 2020. The Byrds incurred and paid the following expenses relating to their personal residence during 2020: Property taxes 3,500 Qualified interest on home mortgage (on debt of $480,000) 10,300 Landscaping 6,500 Utilities 4,200 The Byrds incurred and paid (unless otherwise noted) the following medical expenses during 2020: Medical insurance premiums 5,000 Doctor bill for Myna (incurred in 2019 and paid in 2020) 8,700 Operation for Myna 5,750 Prescription medicines for Myna 4,100 Hospital expenses for Myna 1,500 2018 medical expense insurance reimbursement received in 2018 3,200 The medical expenses for Myna represent most of the 60% that Bruce contributed toward his mothers support. Other relevant info follows: The Byrds paid additional state income tax of $1,300 when they filed their 2019 state return in 2020. In 2020, Alice and Bruce paid $400 for tickets and attended a dinner dance sponsored by the Humane Society (a qualified charity). The cost of comparable entertainment would be $100. The Byrds contributed $3,100 to the local Presbyterian Church and donated used clothing (cost of $1,100 and fair market value of $270 to Salvation Army. All donations are supported by receipts and all clothing is in very good condition. Bruce enjoys gambling in local casinos. During 2020, Bruce had gambling winnings of $6,400 and gambling losses of $14,300. In 2020 the Byrds received interest income of $970 (reported on Form 1099-INT) from HSS Bank. Bruce paid $320 for an annual subscription to the Best Teaching Practices Magazine, $815 for annual membership dues to the Oklahoma Teachers Association, and $160 on classroom supplies. Bruces employer does not reimburse employee business expenses. The Byrds did not keep the receipts for the state sales taxes they paid. They had no major purchases subject to state sales tax. Assume state sales tax is less than state income tax. All members of the Byrd family had health insurance coverage all during 2020. Alice and Bruce did not make estimated federal income tax payments for 2020.
---- For AGI
Wages, tips, other compensation 120,000 Interest Income 970 Gambling winnings 6,400 School supplies (160) Total deductions for AGI should total 127,120 (I'm off $90)
Itemized Deductions: Medical 10,516 (A) see note below Taxes 4,800 (B) see note Interest 10,000* Max of 10K (Home mortgage interest of 10,300) Gifts to Charity 3,370 (C) Other 6,400 Total ID should equal to $42,686
Resulting in taxable income of $84,434
(A) medical expenses:
Doctor bill for Myna (incurred in 2019 and paid in 2020)
8,700
Operation for Myna
5,750
Hospital expenses for Myna
1,500
Rx
4,100
Less: 7.5% of AGI ($127,120) = (9,534) = 10516
(B) Taxes:
Property taxse $3,500 State income tax $1,300 Total $ 4,800
(C) Charity Church donation $3,100 Clothes (FMV) $270 Tickets $400 Total: $3,770 Child/Dependent Credit Joan (25) Zero Frank (22) $500 Myna ( $500 Total of $1,000
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