question archive In 2016, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly

In 2016, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly

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In 2016, John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1978), and Shannon’s is 412-34-5671 (date of birth 11/3/1980). John and Shannon had qualifying health care coverage at all times during the tax year.

John’s W-2 contained the following information:

Wages (box 1) = $ 66,346.74
Federal W/H (box 2) = $ 6,583.85
Social security wages (box 3) = $ 66,346.74
Social security W/H (box 4) = $ 4,113.50
Medicare wages (box 5) = $ 66,346.74
Medicare W/H (box 6) = $ 962.03

Shannon did not work for the year due to her medical condition but did receive unemployment compensation of $2,711 for the year with no federal withholding. In the same year, they had the following medical costs:

 
Shannon’s prescribed diabetes medication $ 2,150  
Shannon’s hospital charges   8,350  
Shannon’s regular physician visits   835  
Shannon’s eye doctor   75  
Shannon’s diabetes blood testing supplies   185  
Insurance reimbursements   1,910  
 

In addition, they had the following other expenses:

 
State income taxes $ 2,950  
Real estate taxes   1,170  
Car loan interest   500  
Personal property taxes   265  
Cash charitable contributions   635  
(made ratably throughout the year to their church)      
Mortgage interest expense   7,970  
Union dues for John   575  
Tax preparation fees   175  
 

Prepare a Form 1040 and Schedule A for the O'Banions using any appropriate worksheets. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers.)

Use the appropriate Tax Tables.

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