Data Analysis

Question•Following is a list of information for Peter and Amy Jones for the current tax year. Peter and Amy are married and have three children, Aubrynne, Bryson, and Caden. They live at 100 Main Street, Anytown, USA 00000. Peter is a lawyer working for a Native American law firm. Amy works part-time in a genetic research lab. The Jones’ Social Security numbers and ages are as follows:
Name
S.S. No.
Age

Peter
111-11-1111
32

Amy
222-22-2222
28

Aubrynne
333-33-3333
5

Bryson
444-44-4444
3

Caden
555-55-5555
1

Receipts

Peter’s salary
$70,000

Amy’s salary
32,000

Interest income on municipal bonds
2,400

Interest income on certificate of deposit (Universal Savings)
3,100

Dividends on GM stock
1,600

Disbursements

Eyeglasses and exam for Aubrynne
$ 600

Orthodontic work for Bryson to correct a congenital defect
2,500

Medical insurance premiums, after-tax basis
1,800

Withholding for state income taxes
7,200

Withholding for federal income taxes
16,000

State income taxes paid with last year’s tax return (paid when the return was filed in the current year)
500

Top of Form

Bottom of Form

Property taxes on home
1,100

Property taxes on automobile
300

Interest on home
9,700

Interest on credit cards
200

Cash contribution to church
3,900

In addition to the above, on September 17, Peter and Amy donate some Beta Trader, Inc. stock to Lakeville Community College. Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $700. Peter and Amy had purchased the stock on November 7, 2003 for $300.Compute Peter and Amy’s income tax liability for the current year using Form 1040, Schedules A and B, and Form 8283, if necessary.