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• Phil, 35 years old is an accountant. He receives medical insurance and fringe benefits from the employee. His wife, Sharon is 33 years old and works part time as office manager. They have 1 child, Amy 4 years old (qualifies for the $2,000 child care credit. They live in NYC and Sharons mother cares for Amy at no cost.

Phils Gross salary	$56,400
Sharons salary	$22,000
Cash gift	$5,000
Interest Income from bank acc	$100
Federal income tax w/h	$2,500
State income tax	$3,680
Charitable contributions	$6,000
Rent paid	$10,000
Made a loan on March 1 in current year to a friend, who was starting a business. Principal amount was $10,000 pays interest annually on December 31. The interest rate is 5%.	Calculate amount	(Loan was done as part of arms length transaction. Interest was paid on time)
Purchased 100 shares of IBM for $2,000 in April of this year and sold the stock for December for $1,500	Calculate amount
Municipal Bond Interest	$500
Purchased 100 shares of Disney for $5,000 and sold it for $1,000. Held the stock for 2 years	Calculate amount

Calculate Phil and Sharon's tax liability before applying any credits or tax payments?

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