Reference no: EM131796853

COMPREHENSIVE PROBLEM

With Emphasis on Schedule A

Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamie's social security number is 412-34-5670 (date of birth 6/15/1966) and Cecilia's is 412-34-5671 (date of birth 4/12/1968). They provide more than half of the support of their daughter, Carmen (age 23), social security number 412-34-5672 (date of birth 9/1/1992), who is a full-time veterinarian school student. Carmen received a $3,200 scholarship covering her room and board at college. She was not required to perform any services to receive the scholarship. Jamie and Cecilia furnish all of the support of Maria (Jamie's grandmother), social security number 412-34-5673 (date of birth 11/6/1945), who is age 70 and lives in a nursing home. They also have a son, Gustavo (age 4), social security number 412-34-5674 (date of birth 3/14/2011). The Reyes and all of their dependents had qualifying health care coverage at all times during the tax year.

Jamie's W-2 contained the following information:

Federal Wages (box 1) = $145,625.00
Federal W/H (box 2) = $ 21,812.50
Social Security wages (box 3) = $118,500.00
Social Security W/H (box 4) = $ 7,347.00
Medicare Wages (box 5) = $145,625.00
Medicare W/H (box 6) = $ 2,111.56
State Wages (box 16) = $145,725.00
State W/H (box 17) = $ 5,435.00

Other receipts for the couple were as follows:

Other information that the Reyeses provided for the 2015 tax year:

Required:

Prepare a Form 1040, Schedule A, and Schedule B for the completion of the Reyeses tax return. They do not want to contribute to the presidential election campaign and do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions.