Assisted a Family With Their  Tax Return

  1. A married couple named Judy and Walter Townson have come to you to seeking assistance with their federal income taxes. During your meeting with the Townsons, you gather the following information:
    • They are both 55 years of age.
    • They have two daughters and one son.
      • One daughter (age 25) is married with children.
      • One daughter (age 20) is living at home and attending college.
      • Their son (age 16) is a junior in high school.
    • They are currently paying for their college-student daughter to attend school full time.
    • Judy is employed as a teacher and makes $60,000 a year. She used $500 of her personal funds to purchase books and other supplies for her classroom.
    • Walter is employed as a CPA and makes $100,000 a year.
    • They provided you a 1099-INT which reported $4,500 in interest, of which $500 was savings bond interest.
    • They provided you a 1099-DIV which reported $300 in dividends.
    • They received a state tax refund last year of $385.
    • They provided you a list of expenses including:
      • Doctor’s bills, $800.
      • Prescriptions, $400.
      • New glasses, $2,000.
      • Dental bills, $560.
      • Braces, $5,000.
      • Property taxes for their two cars of $800, which included $50 in decal fees (tabs).
      • Real estate taxes of $4,500.
      • Mortgage interest of $12,000.
      • Gifts to charities, $1,000.
      • GoFundMe contribution to a local family in need, $100.
      • Tax preparation fees for last year’s taxes, $400.
    • Instructions
      Consider the most beneficial way for Judy and Walter to file their federal income tax return.
      Prepare a brief written summary, no more than 500 words that address the following:
    • Estimated taxable income for Judy and Walter (please show computations).
    • Summary of tax return, including any suggestions or tax planning considerations.
    • Explain how you determined the filing status, dependents, and use of standard/itemized deduction.
    • This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
      The specific course learning outcome associated with this assignment:
    • Complete a tax analysis that is informed by tax law and strategies to determine the most beneficial way for a client/family to file their federal income tax return.