David and Darlene Jasper have one child, Sam, who is 6 years old (birthdate July 1, 2013). The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David’s Social Security number is 577-11-3311, Darlene’s is 477-98-4731, and Sam’s is 589-22-1142. David’s birthdate is May 29, 1986 and Darlene’s birthday is January 31, 1988. David and Darlene’s earnings and withholdings for 2019 are:
David:
Earnings from Apple Company (office manager) $26,125
Federal income tax withheld 2,800
State income tax withheld 1,050
Darlene:
Earnings from Rose Company (perfume tester) $25,100
Federal income tax withheld 2,650
State income tax withheld 900
Their other income includes interest from Pine Tree Savings and Loan of $1,825. Other information and expenditures for 2016 are as follows:Interest:On home acquisition mortgage $11,250Credit card 925Taxes:Property taxes on personal residence 1,300State income taxes paid in 2016 (for 2015) 315Contribution (with written acknowledgement)
to church 990Medical insurance 475
Medical and dental expenses 5,800Income tax return preparation fee paid in 2016 200Actual general state sales tax for 2016 1,016Payment of union dues 225David and Darlene received the following letter from Sam’s daycare provider:In 2016, David lost his job. David paid for one month of insurance out-of-pocket and then the family went without insurance for September through December 2016. They are not eligible for any exemptions from health care coverage. Required:
Complete the Jaspers’ federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, Form 2441, and the Shared Responsibility Payment Worksheet and the Flat Dollar Amount Worksheet. Make realistic assumptions about any missing data.
Their other income includes interest from Pine Tree Savings and Loan of $1,825. Other information and expenditures for 2016 are as follows:Interest:On home acquisition mortgage$11,250Credit card925Taxes:Property taxes on personal residence1,300State income taxes paid in 2016 (for 2015)315Contribution (with written acknowledgement) to church990Medical insurance475Medical and dental expenses5,800Income tax return preparation fee paid in 2016200Actual general state sales tax for 20161,016Payment of union dues225David and Darlene received the following letter from Sam’s daycare provider:In 2016, David lost his job. David paid for one month of insurance out-of-pocket and then the family went without insurance for September through December 2016. They are not eligible for any exemptions from health care coverage. Required: Complete the Jaspers’ federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, Form 2441, and the Shared Responsibility Payment Worksheet and the Flat Dollar Amount Worksheet. Make realistic assumptions about any missing data.