Compute net tax payable or refund due for Alice and Bruce Byrd for 2013
A Show more Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1111 respectively. Alices birthday is Sep- tember 21 1965 and Bruces is June 27 1964. They live at 473 Revere Avenue Lowell MA 01850. Alice is the office manager for Lowell Dental Clinic 433 Broad Street Low- ell MA 01850 (employer identification number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation 1247 Central Avenue Hauppauge NY 11788 (employer identification number 11-1111111). The following information is shown on their Wage and Tax Statements (Form W2) for 2013. Description Alice Bruce 1 Wages tips other compensation $58000 $62100 2 Federal income tax withheld 4500 6300 3 Social Security wages 58000 62100 4 Social Security tax withheld 2436 2608 5 Medicare wages and tips 58000 62100 6 Medicare tax withheld 841 900 15 State Massachusetts Massachusetts 16 State wages tips etc. 58000 62100 17 State income tax withheld 2950 3100 The Byrds provide over half of the support of their two children Cynthia (born January 25 1989 Social Security number 123-45-6788) and John (born February 7 1993 Social Security number 123-45-6786). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $4200 from a summer internship in 2013 and John earned $3800 from a part-time job. During 2013 the Byrds furnished 60% of the total support of Bruces widower father Sam Byrd (born March 6 1937 Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in Novem- ber and Bruce the beneficiary of a policy on Sams life received life insurance proceeds of $800000 on December 28. The Byrds had the following expenses relating to their personal residence during 2013: Property taxes $5000 Qualified interest on home mortgage 8800 Repairs to roof 5750 Utilities 4100 Fire and theft insurance 1900 The following facts relate to medical expenses for 2013: Medical insurance premiums $4500 Doctor bill for Sam incurred in 2012 and not paid until 2013 7600 Operation for Sam 8500 Prescription medicines for Sam 900 Hospital expenses for Sam 3500 Reimbursement from insurance company received in 2013 3600 The medical expenses for Sam represent most of the 60% that Bruce contributed to- ward his fathers support. Other relevant information follows: When they filed their 2011 state return in 2012 the Byrds paid additional state income tax of $900. During 2013 Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Byrds contributed $5000 to Lowell Presbyterian Church and gave used clothing (cost of $1200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts and the clothing is in very good condition. In 2013 the Byrds received interest income of $2750 which was reported on a Form 1099INT from Second National Bank. Alices employer requires that all employees wear uniforms to work. During 2013 Alice spent $450 on new uniforms and $225 on laundry charges. Bruce paid $400 for an annual subscription to the Journal of Franchise Management. Neither Alices nor Bruces employer reimburses for employee expenses. The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. QUESTION: Part 1Tax Computation ( Do not use tax software !) Compute net tax payable or refund due for Alice and Bruce Byrd for 2013. If they have overpaid they want the amount to be refunded to them. use tax forms for your computations(Forms 1040 and 2106 and Schedules A and B.) I only need help on Form 2106 both Alice and Bruce. It would be nice if the solution is in a form structure Show less
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