Reed and Aurora want to file a joint return. • Aurora works in retail and is a member of the Army Reserve. • Aurora attended Army Reserve training sessions one weekend per month. The training takes place over 100 miles away from home. She incurred the following expenses that were not reimbursed: - Drove 2,880 miles based on written records. - Aurora and Reed own two vehicles and both are available for personal use. - Total mileage in 2016 for Aurora's sedan was 15,000 miles. Her car was placed in service 7/1/2013. Her average daily roundtrip commuting distance is 20 miles. - $2,136 for lodging (within federal per diem rate for the area). - $1,572 for meals (within federal per diem rate for the area). - $250 for required uniforms, permitted to be worn while off-duty. • Reed owns rental property, which he placed into service in 2005. - Rental property: Reed is an active participant. - Single family residence, 1000 Sunflower Street, Your City, Your State. - Purchased property: 04/30/2005. - Rented: 1/1/2016-12/31/2016. - Annual rental income: $9,960. - Insurance: $700. - Management fees: $498. - Reed did some plumbing repairs himself. He spent $50 for materials and estimates that a plumber would have charged $150 for labor. - Real property tax: $1,250. - Depreciation: $2,000. - Reed did not make any payments that would require him to file Form 1099. • Reed and Aurora did not itemize last year and do not have enough deductions to itemize this year. • Reed and Aurora have a health insurance plan through Reed's former employer's retiree coverage which qualifies as minimum essential coverage.
1. The correct amount of total wages reported on Form 1040, line 7 is $24,800. True or Flase
2 .Reed's rental real estate income is reported on Form 1040, Line 21. True or false
3. Reed's net rental real estate income is $5,312. True or false
4. What amount of the unreimbursed employee business expenses as a reservist may Aurora deduct for meals?
5. Aurora should report her unreimbursed employee business expenses as a reservist as an adjustment to income on Form 1040, Line 24, from Form 2106 or 2106-EZ. True or false
6. What is the total federal income tax withheld on Form 1040, page 2? $_______