Instructions: Please complete the 2019 federal income tax return for the Henrys using the downloadable Tax Act Software. If required information is missing, use reasonable assumptions to fill in the...

Instructions:

Please complete the 2019 federal income tax return for the Henrys using the downloadable Tax Act Software.

If required information is missing, use reasonable assumptions to fill in the gaps.

Facts:

1. Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mother’s company, Long-term Investments, Inc., a full-service wealth-planning firm. They provide the following information:

• They both want to contribute to the presidential election campaign.


• They live at 9876 Old Waverly, Charleston, South Carolina 29401.


• Johnelle’s birthday is 7/17/1965 and his Social Security number is 555-12-6789.


• Latoya’s birthday is 9/11/1967 and her Social Security number is 987-65-4321.


• Johnelle and Latoya do not have any foreign bank accounts or trusts.


• Neither Johnelle or Latoya acquired, sold, or exchanged virtual currency in 2019.

2. Johnelle received a Form W-2 from Toys Unlimited, Inc. that contained the following information:

3. Latoya received a Form W-2 from Long-term Investments, Inc., that contained the following information:

4. Johnelle and Latoya incurred the following medical expenses for the year:

5. Johnelle and Latoya paid $12,000 of interest payments on their primary residence (acquisition debt of $225,000). They also paid $1,750 of interest expense on Latoya’s car loan and $500 of interest on their Visa card.


6. Johnelle and Latoya paid $4,000 of real estate taxes on their home and $1,000 of real estate tax on a vacant lot they purchased with the hope of building their dream home in the future. They also paid $3,000 in sales tax on Latoya’s car and other purchases and $1,000 of ad valorem personal property tax on their cars.


7. Johnelle and Latoya made the following contributions this year:

8. Johnelle won $5,000 in the state lottery. He has been playing the lottery for years, spending $10 in lottery tickets every week ($520 in total) and is careful that he saves the old tickets to keep track of the numbers he plays.