Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5).
Blake’s gross salary from his corporate employer was $70,000, and his Section 401(k) contribution was $6,300.
Valerie’s salary from GuiTech, an S corporation, was $29,400.
Valerie owns 16 percent of GuiTech’s outstanding stock. Her pro rata share of GuiTech’s ordinary business income was $13,790, her pro rata share of GuiTech’s net loss from rental real estate was $8,100, and she received a $7,000 cash distribution from GuiTech.
Blake received a $12,000 cash gift from his grandmother.
Valerie won $6,400 in the Maryland state lottery.
The Meyers received a distribution from their investment in Pawnee Mutual Fund that consisted of a $712 qualifying dividend and a $3,020 long-term capital gain.
Blake paid $12,000 alimony to a former spouse.
The Meyers paid $14,200 home mortgage interest on acquisition debt and $2,780 property tax on their personal residence.
The Meyers paid $7,000 state income tax and $4,200 state and local sales tax.
Valerie contributed $1,945 to the First Baptist Church.
On the basis of the above information, compute the Meyers’ federal income tax (including any AMT) on their joint return. Assume the taxable year is 2017. Use Individual tax rate schedules and Standard deduction table. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Blake's salary $ 70000
Valarie salary $ 29400
Total $ 99400
Contribution to 401 k $ (6300)
Total $ 93100
Valarie business income $ 13790
Rental loss from real estate $ (8100)
Cash contribution $ 7000
Sub total $ 105790
Cash gift for blake $ 12000
Lottery winning of valarie $ 6400
Sub total $ 87390
Blake's alimony charge $ 12000
Meyer interest charge $ 14200
Proerty taxes $ 2780
Sub total $ 58410
Less :Taxes paid already :
State income tax $ 4200
Baptist church Contri $1945
Total $ 52265
Taxes @ 9.30 % $ 4860.645
Rounded to $ 4861.
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