Prepare the Johnsons 2013 tax return using Form 1040 Schedules A B C D and SE

s social security number is 1 Show more Steve and Sarah Johnson are married and file a joint tax return. Steves social security number is 111-11-111 and Sarahs is 222-22-2222. They have two children Joshua age 6 with social security number 333-33-3333 and Olivia age 3 with social security number 444-44-4444. Steve is a master gardener and has his own business. Sarah is a computer programmer and works for Facebook. Their address is 65 Riverside Way San Bernardino CA 92401. Sarahs Form W-2 reported wages in box 1 of $70000. She had federal income taxes withheld of $20000 and CA income taxes withheld of $7000. Information from Steves business is as follows: Amounts reported to him on Form 1099 $120000 Interest income from a business note receivable $154 (you may need to look at the Schedule C instructions at www.irs.gov) Rent expense for his office $7000 Business insurance premiums $2000 Salaries for two part-time employees $40000 Depreciation on office equipment $1500 Office Supplies $800 Topsoil $12000 Grass seed $8000 Trade publications about gardening $200 Truck expenses: Gas $3000 Repairs $1500 Insurance $1000 Steve drives his truck 80% for business. The total mileage for the car was 20000 miles. Steve uses the standard mileage rate for his truck. Do not prepare Form 4562. Any information that needs to be reported for the truck about the mileage should be reported on Schedule C (Hint: See page 2). He has written evidence and has another vehicle available for use. The truck was placed in service on January 3 2012. The calculated deduction should be reported on Schedule C page 1. Steve and Sarah own a home and paid mortgage interest of $10800 and real estate taxes of $5600 during the year. Interest on their credit card for the year was $500. They received a California state tax refund of $1100 from their prior year California state return on which they received a tax benefit as an itemized deduction on their prior year federal return. They bought 200 shares of Facebook stock on January 15 2011 for $10000. They sold 100 of those shares on January 4 2013 for $17000. In addition they purchased 350 shares of Apple Stock on September 20 2012 for $10000 and sold those shares on July 31 2013 for $19000. They have a ($22000) short-term capital loss carryover from 2012. There is no need to file Form 8949. Report any capital transactions directly on Schedule D. They contributed $2000 to their church and contributed $150 worth of clothes to Goodwill based on an estimated yard sale value. They earned $35 interest on their bank account from SunTrust and received qualified dividends of $800 from their Apple stock. They also received $1200 in interest on bonds from the State of Texas municipal bonds. They received $1900 interest from a CD they purchased at First Wachovia Bank sone year ago. Unfortunately Olivia was very sick during 2013 and required significant medical care. The Johnsons received no reimbursement from the insurance company. The qualifying medical costs for the family included: Medicine $4000 Doctor bills $7000 Hospital costs $8000 Other medical bills $3000 If they receive a refund the Johnsons would like their refund electronically deposited into their bank checking account. The routing number is 123456789 and the account number is 23456789. The Johnsons did not have a foreign bank account or signature authority over a foreign bank account. Prepare the Johnsons 2013 tax return using Form 1040 Schedules A B C D and SE. Show less