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In: Accounting

Dave and Sally Tufts, both age 35, are married with two children and file a joint...

Dave and Sally Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit, and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020.

Dave's Salary = $50,000

Federal income tax withheld = 4,000

Sally's Salary= 42,000

Federal income tax withheld = 5,000

Andy's contribution to an IRA (assume IRA is deductible for AGI)= 2,000

Dividends received from domestic corporations= 950

Medical expenses for doctors and hospitals= 8,200

Premiums for health insurance= 2,600

Prescription drugs and medicines= 800

Eyeglasses for one of children= 175

interest on home mortgage= 12,800

interest on credit cars= 300

real property taxes on residence= 6,300

state income taxes= 5,800

fee for preparation of tax returns= 125

Union dues and subscriptions= 480

*Please adds explanations so I can take good notes thank you**

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ekkarill92 answered 2 years ago
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