1. Go to the www.irs.gov website
2. Print out a Form 1040, Schedule A, and instructions for this Schedule, under “Forms and Publications”. Print the most recent Schedule and Instructions available.
3. Complete the Schedule A using the following facts:
June and Mike Baird are a married couple. Together their Adjusted Gross Income is $150,000. For 20XX, they had the following items or occurrences related to itemized or possible itemized deductions. All amounts are totals for the year:
a) Mortgage interest on primary residence $6,000. Mortgage amount $220,000.
b) Property taxes, primary residence, $4,000
c) Mortgage interest on vacation home, $4,000. Mortgage amount $160,000
d) Property tax on vacation home $4,000
e) Doctors bills paid out of pocket, not covered by insurance, $2,100
f) Prescription drugs paid out of pocket $800
g) Health insurance premiums paid through employers and deducted from their gross income each week $2,400
h) Over the counter medicines to treat Mike’s athlete’s foot, $300
i) State income taxes withheld from paychecks $1,800
j) State income taxes paid with their state return last year $400
k) Total loss of car, not covered with comprehensive insurance so no insurance proceeds received. Paid $9,000 for the car used, at date of total loss, value was $4,800
l) Wallet stolen at beach, containing $800
m) Tax return preparation fees paid $200
n) Investment counselor fees paid $400
o) Cash gifts to church $2,400
p) Gifts of old clothing to Goodwill and Salvation Army, all donated August 31st, miscellaneous items listed by June as being worth $350
q) Gift of appreciated Sherwin-Williams Company stock to the Church. June had paid $1500 for the stock three years ago, and its value at date of gift (October 1) was $3,200
r) Various gifts at the holiday season to needy individuals who use the church’s soup kitchen, $200
