Determine joe and jessies agi and taxable income for year

Reference no: EM133749874

Problem: Joe & Jessies Taxable income

Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm, while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000).

Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer portion of the self-employment tax on Jessie's income is $666. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:

Income:
Joe's salary	$ 146,200
Jessie's craft sales	18,610
Interest from certificate of deposit	1,860
Interest from Treasury bond funds	758
Interest from municipal bond funds	962
Expenditures:
Federal income tax withheld from Joe's wages	$ 13,700
State income tax withheld from Joe's wages	6,820
Social Security tax withheld from Joe's wages	7,566
Real estate taxes on residence	6,620
Automobile licenses (based on weight)	352
State sales tax paid	1,360
Home mortgage interest	28,100
Interest on Masterdebt credit card	2,720
Medical expenses (unreimbursed)	1,900
Joe's employee expenses (unreimbursed)	2,820
Cost of Jessie's craft supplies	6,570
Postage for mailing crafts	170
Travel and lodging for craft shows	2,440
Self-employment tax on Jessie's craft income	1,332
College tuition paid for Lizzie	6,200
Interest on loans to pay Lizzie's tuition	3,620
Lizzie's room and board at college	13,040
Cash contributions to the Red Cross	630

Task

Determine Joe and Jessie's AGI and taxable income for the year.

Reference no: EM133749874

Questions Cloud

Compare this value across the two locations : Determine the average price point for your selected car in each of the locations identified - Pick a car make and model of your choice. Select two different

Tax and zakat accounting : ACCT 422 Tax and Zakat Accounting - Calculate the receptacle of the zakat for each kind assuming the zakat receptacle exceeds Nisab

Influencing factors such as the cost of ingredients : Promote sustainability, environmental awareness, and affordability. Furthermore, our marketing would mainly focus on social media platforms

Write a brief memo to the founders of panda sunglasses : Write a brief memo to the founders of Panda Sunglasses outlining a bootstrap marketing plan for the company?

Determine joe and jessies agi and taxable income for year : Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college. Determine Joe and Jessie's AGI and taxable income for the year.

Draw a decision tree based on the case study : Draw a decision tree based on the case study for decision making - Identify the main problem and subproblems of the case

In what ways you say dominican racial identity is complex : Your answer should be about a paragraph long. In what ways would you say Dominican racial identity is complex and unique?

What is mission and vision of organization : HIM 1800 Miami Dade College- What is mission and vision of organization? What types of health information technology services are available through facility?

What safeguards you use in accessing wireless communications : ISFM 201- What risks and safeguard are associated with wireless communication? What safeguard you use in accessing unprotected (public) wireless communications?

User Account

All Pages