Richard L. and Mary G. Soup are married and file a joint return. During the curr

Question

Richard L. and Mary G. Soup are married and file a joint return. During the current year their eldest child, Gregory, attended State University on a full scholarship valued at $8,500. The Soups contributed the only other support for Gregory in the form of spending money of $3,500. Their other child, Nancy, is an 18-year-old high school student who lived at home and worked part-time. Nearly all of Nancy's earnings of $5,800 were placed in savings for college. Both of the Soups were employed full-time throughout the year. Their earn- ings are as follows: 6. Richard L. Soup, Executive Sales Manager Mary G.Soup, Showroom Salesperson 33,000 45,000 Withholding of $4,200 and $4,300, respectively was taken from Richard's and Mary's salaries and commissions Mr. Soup was the recipient of a sizeable inhenitance several years earlier. The wealth is all invested in stocks bonds, and certificates, and the income is summarized as follows Interest income Seed 13 6,800 11,200 First Savings Bank Dividends Xerox Corporation. 1,000 5,000 2,400 Cana-Brit (A publicly traded foreign corporation) Richard and Mary will itemize their deductions for the year. Their records reveal the following Medicines and drugs Other medical Medical insurance reimbursement 1,200 11,400 -8,050 1,350 3,500 11,400 16,900 75 3,600 250 State and local income taxes Interest on home mortgage. Other interest-Credit cards Cash charitable contnbutions Tax return preparation fee for prior year..... Political contributions to a national candidate for office 300 Complete a Form 1040 for Richard and Mary Soup based on the above infor- mation. Use the forms on the following pages. Assume that all of the Soup's dividends qualify for taxation at capital gain tax rates.

Explanation / Answer

In 2018, for each qualifying child you can receive up to a $2,000 tax credit and qualifying child is who under the age of 17 at the end of the year.so in the present case he cant claim the child tax credit as the thpse child are above 18

interest income from u.s treasury bills and first savings bank is exempt from taxation as per the provisions of state tax

standard deduction is available @24000 as it jointly filed return

medical expense

Actual deduction is only for the amount that exceeds 7.5% of your Adjusted Gross Income (AGI). Enter your total expenses and we will calculate the actual deduction based on your AGI.

medicines and durgs and medical insurance reimbursement all are included in the above statement

state local taxes paid are allowed as deduction

Real estate Taxes are not allowsd as dedeuction

Cash charitable contributions are allowed deductions

Tax return Preparation fee is not allowabloe expenditure

Political contributions are also not allowable expnenditure

Alternatove Minimum Tax is not Applicable here.

This is the information you required to fill in the Form 1040

It might be some thing Wrong in filing the form 1040 directly so i answered inthos way

Thank you

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