Explain how you determined the filing status, dependents, and use of standard/itemized deduction.

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  • Mortgage interest of $12,000.
  • Gifts to charities, $1,000.
  • GoFundMe contribution to a local family in need, $100.
  • Tax preparation fees for last year’s taxes, $400.

Instructions

Consider the most beneficial way for Judy and Walter to file their federal income tax return.

Prepare a brief written summary, no more than 500 words that address the following:

  • Estimated taxable income for Judy and Walter (please show computations).
  • Summary of tax return, including any suggestions or tax planning considerations.
  • Explain how you determined the filing status, dependents, and use of standard/itemized deduction.

Complete a tax analysis that is informed by tax law and strategies to determine the most beneficial way for a client/family to file their federal income tax return.