Derrick and Ani Jones are married taxpayers, filing jointly, and have a son named Jackson. They live at 474 Rustic Drive

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Derrick and Ani Jones are married taxpayers, filing jointly, and
have a son named Jackson. They live at 474 Rustic Drive, Spokane,
WA 99201. Ani works as the director of information systems at
Washington Community College District (WCCD). Derrick is a
stay-at-home dad. Their SSNs are Derrick, 412-34-5670; Ani,
412-34-5671; and Jackson, 412-34-5672. Their birth dates are as
follows: Derrick, June 7, 1980; Ani, March 20, 1981; and Jackson,
October 10, 2013. The Joneses own their home and paid $15,000 in
mortgage interest during the year to Chase Bank and property taxes
of $3,200. Assume they have no other deductible expenses. The
Form W-2 Ani received from WCCD contained the following
information:
In addition, the Joneses own a small, four-unit rental at 12345
Rainbow Way, Sultan, WA 98294. The rental was purchased and placed
in service on July 1, 2007, and was rented for the entire year. The
following income and expense information relates to the rental
activity. For the purpose of this return problem, do not consider
passive activity rules or limitations.
Required:
Prepare the Joneses’ federal tax return for 2020. Use Form 1040,
Schedule A, Schedule E, and any other appropriate schedules. Assume
they do not qualify for any credits other than the child care
credit. If using tax software, the software will calculate Child
Tax Credit automatically. The taxpayers had qualifying health care
coverage at all times during the tax year. For any missing
information, make reasonable assumptions. The net rental income
qualifies for the 20 percent qualified business income
deduction. (List the names of the taxpayers in the
order in which they appear in the problem. Input all the
values as positive numbers. Instructions can be found on certain
cells within the forms. Round your final answers to the nearest
whole dollar amount. Do not skip rows, while entering in Dependents
section of Form 1040 PG1.)
Use the appropriate Tax Tables or Tax Rate
Schedules.