Assignment
For this assessment, complete the following:
• Read the information provided in the scenario below.
• Use information and publications from IRS gov and the other IRS resources linked in the Resources to determine itemized deductions for the Weavers for Schedule A, based on the scenario information.
• Add the information you determine to Schedule A.
• Submit Schedule A.
Scenario
• Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2016.
o They have three children, Ashley, age 9; Patrick, age 6; and John, age 18.
o Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-99-1234; Patrick, 789-56-4321; John, 123-45-6789.
• Jacob is self-employed as a contractor.
o 2016 net income: $133,000.
o Clients owe him a total of $53,000 for work completed in 2016.
o 2016 estimated tax payments: $25,000.
• Taylor works part-time as a paralegal.
o She earned $26,000 in 2016.
o Federal income withholding: $2,350.
• Weavers paid $350 with their 2015 state tax return.
• Jacob and Taylor bought their first house in 2016.
o Home mortgage interest: $7,246.
o Property tax: $2,230.
• Charities: $4,500.
• $435 to rent a moving truck.
• $8,000 to put new siding on the house.
• $11,600 for child care expenses ($5,800 for each child).
o It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98-7654321).
• Taylor is a part-time student at Ball State University in Muncie.
o She received a 1098-T indicating tuition and fees for 2016 in the amount of $6,011.
• Health insurance for the family, through Taylor's job, cost $6000 for all 12 months of 2016.
o They paid deductibles and co-payments of $550.
o Dental insurance for the family was $1200.
• Car insurance for the family car was $600.