Assignment 4 (Chapter 6)
1. Stacie and Ryan are married and file jointly for the 2019 tax year. They have two sons. Their
sons are age 10 and 14. Stacie and Ryan’s wages in total for the year was $133,000. Their
employers withheld $18,000 in tax from their wages. In addition to the above, the following
occurred the 2019 tax year:
They moved several states away because of career relocation for Ryan. Their
unreimbursed moving costs were $10,000.
Stacie and Ryan pay $3,500 of the interest on a loan Ryan’s postsecondary education.
They paid $2,000 in medical insurance premiums for the year. In addition, they paid
$1,000 for hospital stay after an emergency room trip for Stacie.
The couple paid $250 for an accountant to prepare their taxes.
Their accountant calculates that their total state income tax liability is $4,000. The couple
pay all their state taxes during the 2019 tax year.
Determine Stacie and Ryan’s AGI.
Ignore your answer in a). Assume that Stacie and Ryan’s AGI in 2019 is $120,600.
Determine the amount of itemized deduction Stacie and Ryan have available this year.
Ignore your answer in b). Assume that the amount of itemized deduction available is
$7,500. Using the 2019 standard deduction amounts (assuming no additional amounts for
age or blindness) from Appendix D in your book, first determine whether Stacie and
Ryan itemize or take the standard deduction. If you determine they itemize, write in the
itemized deduction dollar amount given ($7,500). Alternatively, if you determine they
will take the standard deduction, write in the standard deduction amount for which they
qualify (tied to the appropriate filing status).
Ignore your answer in a) - c). Assume that Stacie and Ryan’s taxable income is $163,250
and their employer withheld $18,000 in tax from their wages. Using the tax rate schedule
from Appendix D in your book, determine the amount of taxes due or the amount of
refund due. Remember to clearly mark the answer as either the amount of tax due or a