Prepare income tax return for 2011 manually. Following is a list of information for Peter and Amy Jones for the current tax year. Peter and Amy are married and have three children, Aubrynne, Brys

Prepare income tax return for 2011 manually.

Following is a list of information for Peter and Amy Jones for the current tax year.

Peter and Amy are married and have three children, Aubrynne, Bryson, and Caden. They live at

100 Main Street, Anytown, USA 00000. Peter is a lawyer working for a Native American

law firm. Amy works part-time in a genetic research lab. The Jones’ Social Security numbers

and ages are as follows:

Peter 111-11-1111 Age 32

Amy 222-22-2222 Age 28

Aubrynne 333-33-3333 Age 5

Bryson 444-44-4444 Age 3

Caden 555-55-5555 Age 1

Peter’s salary $70,000

Amy’s salary 32,000

Interest income on municipal bonds 2,400

Interest income on certificate of deposit (Universal Savings) 3,100

Dividends on GM stock 1,600

Eyeglasses and exam for Aubrynne $ 600

Orthodontic work for Bryson to correct a congenital defect 2,500

Medical insurance premiums, after tax basis 1,800

Withholding for state income taxes 7,200

Withholding for federal income taxes 16,000

State income taxes paid with last year’s tax return

(paid when the return was filed in the current year) 500

Property taxes on home 1,100

Property taxes on automobile 300

Interest on home 9,700

Interest on credit cards 200

Cash contribution to church 3,900

In addition to the above, on September 17, Peter and Amy donate some Beta Trader, Inc.

stock to Lakeville Community College. Beta Trader, Inc. is publicly traded. The FMV of

the stock on the date of the contribution is $700. Peter and Amy had purchased the stock

on November 7, 2003 for $300.

Compute Peter and Amy’s income tax liability for the current year using Form 1040,

Schedules A and B, and Form 8283, if necessary.

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