Taxes

A married couple named Judy and Walter Townson have come to you to seeking assistance with their federal income taxes. During your meeting with the Townsons, you gather the following information:They are both 55 years of age.They have two daughters and one son.One daughter (age 25) is married with children.One daughter (age 20) is living at home and attending college.Their son (age 16) is a junior in high school.They are currently paying for their college-student daughter to attend school full time.Judy is employed as a teacher and makes $60,000 a year. She used $500 of her personal funds to purchase books and other supplies for her classroom.Walter is employed as a CPA and makes $100,000 a year.They provided you a 1099-INT which reported $4,500 in interest, of which $500 was savings bond interest.They provided you a 1099-DIV which reported $300 in dividends.They received a state tax refund last year of $385.They provided you a list of expenses including:Doctor’s bills, $800.Prescriptions, $400.New glasses, $2,000.Dental bills, $560.Braces, $5,000.Property taxes for their two cars of $800, which included $50 in decal fees (tabs).Real estate taxes of $4,500.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.InstructionsConsider 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.This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.The specific course learning outcome associated with this assignment: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.