The following information is available for Tom and Susan Smith, a married couple filing a joint return, for 2019. Tom is 67 and Susan is 64. They have one son, Sam, who is 27 years old, lived with them all year and had 2,000 of income. They had the following items for 2019:
|
Salaries |
$225,000 |
|
City of Fresno bond interest income |
$1800 |
|
Interest income from corporate bond |
$2200 |
|
Rental income (rented the entire year) |
$50000 |
|
Rental expenses (interest, taxes, repairs) |
$20000 |
|
Loss on sale of personal use vehicle |
$3000 |
|
Personal bad debt – loan to a friend (a promissory note was signed but the friend stopped paying) |
$7000 |
|
Tom contributed to his IRA account (his employer did not have a retirement plan) |
$7000 |
|
Itemized Deductions |
$25000 |
|
Federal tax withholding on wages |
$30000 |
Calculate the following:
- What is the amount of their adjusted gross income?
- What is the amount of their taxable income?
- What is the amount of federal taxes?
- What is the amount of their child and dependent tax credit?
What is their tax balance due or (refund due)?
