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 1846 Joplin Way, Lakeville, MN 55022. 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:
NAME S.S. NO. AGE
Peter 215-60-1989 32
Amy 301-60-2828 28
Aubrynne 713-84-5555 5
Bryson 714-87-2222 3
Caden 714-89-1684 1
RECIEPTS
Peter’s salary $70,000
Amy’s salary 32,000
DISBURSEMENTS
Eyeglasses and exam for Aubrynne $ 600
Orthodontic work for Bryson to correct a congenital defect 2,500
Medical insurance premiums 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
Compute Peter and Amy’s income tax liability for the current year of 2009 using Form 1040, Schedule A.