{"id":6679,"date":"2021-10-10T08:01:21","date_gmt":"2021-10-10T08:01:21","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/alice-j-and-bruce-m-byrd-are-married-taxpayers-who-file-a-joint\/"},"modified":"2021-10-10T08:01:21","modified_gmt":"2021-10-10T08:01:21","slug":"alice-j-and-bruce-m-byrd-are-married-taxpayers-who-file-a-joint","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/alice-j-and-bruce-m-byrd-are-married-taxpayers-who-file-a-joint\/","title":{"rendered":"Alice j. and bruce m. byrd are married taxpayers who file a joint"},"content":{"rendered":"
\n

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. Alice\u2019s birthday is September 21, 1960, and Bruce\u2019s is June 27, 1959. They live at 473 Revere Avenue. Ames, MA 01850. Alice is the office manager for Ames Dental Clinic, 433 Broad Street, Ames, Ma 01850(employer identification number 98-765432). Bruce is the manager of a Super Burger fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (employer identification number 11-1111111).
\nThe following information is shown on their Wage and Tax Statements ( Form W-2) for 2007.
\n
\n
\nLine Description Alice Bruce
\n1 Wages, tips, other compensation $58,000 $62,100
\n2 Federal income tax withheld 4,500 6,300
\n3 Social Security wages 58,000 62,100
\n4 Social Security tax withheld 3,596 3,850
\n5 Medicare wages and tips 58,000 62,100
\n6 Medicare tax withheld 841 900
\n15 State Massachusetts Massachusetts
\n16 State wages, tips, etc. 58,000 62,100
\n17 State income tax withheld 2,950 3,100
\n
\n
\n
\nThe Byrds provide over half of the support of their two children, Cynthia (born January 25, 1983, Social Security number 123-45-6788) and John (born February 7, 1987, 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 $4,200 from a summer internship in 2007, and John earned $3,800 from a part-time job.
\n
\nDuring 2007, the Byrds furnished 60% of the total support of Bruce\u2019s widower father, Sam Byrds ( born March 6, 1931, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam\u2019s life, received life insurance proceeds of $800,000 on December 28.
\nThe Byrds had the following expenses relating to their personal residence during 2007:
\n
\nProperty taxes $5,000
\nQualified interest on home mortgage 8,800
\nRepairs of roof 5,750
\nUtilities 4,100
\nFire and theft insurance 1,900
\n
\nThe following facts relate to medical expenses for 2007:
\n
\nMedical insurance premiums $4,500
\nDoctor bill for Sam incurred in 2006 and not paid until 2007 7,600
\nOperation for Sam 8,500
\nPrescription medicines for Sam 900
\nHospital expenses for Sam 3,500
\nReimbursement from insurance company, received in 2007 3,600
\n
\n
\nThe medical expenses for Sam represent most of the 60% Bruce contributed toward his father\u2019s support.
\n
\nOther relevant information follows:
\n
\n\u2022 When they filed their 2006 state return in 2007, the Byrds paid additional state income tax of $900.
\n\u2022 During 2007, Alice and Bruce attended a dinner dance sponsored by the Ames police Disability Association ( a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50.
\n\u2022 The Byrds contributed $5,000 to Ames Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts and are in very good condition.
\n\u2022 In 2007, the Byrds received interest income of $2,750, which was reported on a Form 1099-INT from Second National Bank.
\n\u2022 Alice\u2019s employer requires that all employees wear uniforms to work. During 2007, Alice spent $450 on new uniforms and $225 on laundry charges.
\n\u2022 Bruce paid $400 for an annual subscription to the Journal of Franchise Management.
\n\u2022 Neither Alice\u2019s nor Bruce\u2019s employer reimburses for employee expenses.
\n\u2022 The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax.
\n\u2022 Alice and Bruce paid no estimated Federal income tax. Neither Alice nor Bruce wishes to designate $3 to the Presidential Election Campaign Fund.
\n
\n
\n
\nPart 1 – Tax Computation
\nCompute net tax payable or refund due for Alice and Bruce Byrd for 2007. If they have overpaid, they want the amount to be refunded to them. If you use tax forms for your computations, you will need Forms 1040, Schedules A, B and Form 2106.
\n
\nPart 2-Tax Planning
\nAlice and Bruce are planning some significant changes for 2008.They have provided you with the following information and asked you to project their taxable income and tax liability for 2008.
\n
\nThe Byrds will invest the $800,000 of life insurance proceeds in short term certificates of deposit(CD) and use the interest for living expenses during 2008. They expect to earn total interest of $32,000 on the CDs.
\n
\nBruce has been promoted to regional manager, and his salary for 2008 will be $88,000.He estimates that state income tax withheld will increase by $4,000.
\n
\nAlice, Who has been diagnosed with a serious illness, will take a leave of absence from work during 2008. The estimated cost for her medical treatment is $15,400 of which $4,700 will be reimbursed by their
\nInsurance company in 2008. Their medical insurance premiums will increase to $5,000.
\n
\nJohn will graduate from college in December 2007 and will take a job in New York City in January 2008.His starting salary will be $46,000.
\n
\nAssume All the information reported in 2007 will be the same in 2008 unless other information has been
\n
\npresented above.
\n
\nSo I need FORM 1040 ,Sch. A& B and FORM 2106..Please enter all the numbers inside the form Don\u2019t worry about name or ss..etc\u2026.I just need the correct AGI, itemized deduction, exemption Taxable income and taxes\u2026.etc for part 1 and part 2.
\nCheck figures:
\nPart 1
\nAGI 122,850\u2026.Taxable income 70,714\u2026..Tax 10,529
\n
\nPart 2
\nAGI 122,750\u2026.Taxable income 82,756\u2026.Tax 13,337
\n
\nSo those numbers are accurate %100 \n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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. Alice\u2019s birthday is September 21, 1960, and Bruce\u2019s is June 27, 1959. They live at 473 Revere Avenue. Ames, MA 01850. Alice is the office manager for Ames Dental Clinic, 433 Broad […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-6679","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=6679"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6679\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=6679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=6679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=6679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}