Question

Scenario

You have received the following information and are asked to fill out Bowen and Bonnie’s 2019 form 1040 for them. Bowen and Bonnie are married and do not have children. They rent a house in North Portland.

Bonnie works at a coffee shop. Her W-2 reports that she has $36,500 in taxable wages and $4,100 was withheld for Federal income taxes and $2,100 was withheld for Oregon income taxes.

Bowen works at an environmental non-profit. His W-2 reports that he has taxable wages of $29,000, and that $3,000 was withheld for federal income taxes and $2,000 was withheld for Oregon income taxes.

They paid $1,600 in interest on their student loans in the current year. They also made a charitable donation of $250 to an environmental foundation that Bowen’s organization works with that works to preserve the Columbia River Gorge.

For the purpose of this assignment, you will only need form 1040 and its schedules. Assume they do not have any other income or expenses. Assume the couple will file married filing jointly. If they have a refund, please give them the refund rather than apply it to next year. To calculate the tax due, please use the 2019 tables found in the 1040 instructions.

Questions

Fill in the Blanks: Enter the following amounts from the 2019 1040. Remember to enter only whole numbers with no commas, periods, or symbols:

1040, Line 1:

1040, Line 2b:

1040, Line 5a:

1040, Line 7a:

1040, Line 7b:

1040, Line 8b:

1040, Line 11a:

1040, Line 12a:

1040, Line 17:

1040, Line 18b:

1040, Line 21a:

1040, Line 23:

Schedule 1, Line 9:

Schedule 1, Line 20:

Schedule 3, Line 14:

Other Questions

1. How much did they overpay (underpay) their tax liability?

2. What is their marginal tax rate percentage (do not enter the percentage symbol or a decimal point)?

3. What is their gross income?

4. What is their AGI? adjusted gross income

5. What is their taxable income?

Answer 1