What is this couples State and Local tax that I enter in Schedule A LINE...

90.2K

Verified Solution

Question

Accounting

What is this couples State and Local tax that I enter in Schedule A LINE 5(2020 rules)?*************PLEASE HELP WITH THIS

They paid $4,500 to Friendly Hills Child Care center for after-school care for both Justin and Jordan, allocated equally. The address is 2 River Dr, Riverside, CA 92501 and their ID number is 22-1234567.

Stefanis W-2 from the Riverside school district showed the following:

Wages = $ 56,925.04
Federal W/H = $ 6,935.90
Social Security wages = $ 56,925.04
Social Security W/H = $ 3,529.35
Medicare Wages = $ 56,925.04
Medicare W/H = $ 825.41
California W/H = $ 2,105.75

Chris's accounting business is located in downtown Riverside and his business code is 541211. His business had the following income and expense information (Cash basis) for the year:

Gross revenues $ 165,000
Expenses:
Advertising $ 2,100
Insurance 1,200
Legal fees 10,500
Office supplies 800
Rent 24,000
Travel 6,945
Meals 2,400
Utilities 2,800
Wages 34,000
Dues 650

Additionally, Chris and Stefani paid the following expenses during the year:

Medical and dental expenses $ 4,500
Property tax (home on Victoria Lane) 3,750
State income taxes with the 2018 return 3,900
Donations to the church (cash) 3,500
Mortgage interest (home on Victoria Lane) 16,900
Stefani paid $950 in classroom expenses for her class

Chris and Stefani also earned $1,075 of interest income from California Bank during the year.

Lastly, Chris and Stefani own a three-bedroom cabin in Big Bear Lake (they bought it in January of 2008 for $300,000). The address is 3105 Stonehedge Road, Big Bear Lake, CA 92315. They did not use the property for personal use at any time during the year. The revenue and expenses for the Big Bear Lake rental property are as follows:

Rental income $ 18,000
Expenses:
Insurance $ 1,200
Property taxes 2,500
Auto (standard mileage) 267
Management fees 1,600
Repairs and maintenance 1,100
Mortgage interest 9,000
Depreciation Calculate
Utilities 450

The Watanabes also made $12,000 and $9,000 in federal and California estimated income tax payments, respectively, on 06/15/20.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students