Question Content Area Note: This problem is for the 2020 tax year. Alice J. and Bruce M. Byrd are married taxpayers who

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Question Content Area
Note: This problem is for the 2020 tax
year.
Alice J. and Bruce M. Byrd are married taxpayers who file a
joint return. Their Social Security numbers are 123-45-6784 and
111-11-1113, respectively. Alice's birthday is September 21, 1973,
and Bruce's is June 27, 1972. They live at 473 Revere Avenue,
Lowell, MA 01850. Alice is the office manager for Lowell Dental
Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification
Number 98-7654321). Bruce is the manager of a Super Burgers
fast-food outlet owned and operated by Plymouth Corporation, 1247
Central Avenue, Hauppauge, NY 11788 (Employer Identification Number
11-1111111).
The following information is shown on their Wage and Tax
Statements (Form W–2) for 2020.
Line
Description
Alice
Bruce
1
Wages, tips, other compensation
$58,000
$62,100
2
Federal income tax withheld
4,500
5,300
3
Social Security wages
58,000
62,100
4
Social Security tax withheld
3,596
3,850
5
Medicare wages and tips
58,000
62,100
6
Medicare tax withheld
841
900
15
State
Massachusetts
Massachusetts
16
State wages, tips, etc.
58,000
62,100
17
State income tax withheld
2,950
3,100
The Byrds provide over half of the support of their two
children, Cynthia (born January 25, 1996, Social Security number
123-45-6788) and John (born February 7, 2000, Social Security
number 123-45-6780). Both children are full-time students and live
with the Byrds except when they are away at college. Cynthia earned
$6,200 from a summer internship in 2020, and John earned $3,800
from a part-time job. Both children received scholarships covering
tuition and materials.
During 2020, the Byrds provided 60% of the total support of
Bruce's widower father, Sam Byrd (born March 6, 1944, Social
Security number 123-45-6787). Sam lived alone and covered the rest
of his support with his Social Security benefits. Sam died in
November, and Bruce, the beneficiary of a policy on Sam's life,
received life insurance proceeds of $1,600,000 on December 28.
The Byrds had the following expenses relating to their personal
residence during 2020:
Real estate property taxes
$5,000
Qualified interest on home mortgage (acquistion
indebtedness)
8,700
Repairs to roof
5,750
Utilities
4,100
Fire and theft insurance
1,900
The Byrds had the following medical expenses for 2020:
Medical insurance premiums
$4,500
Doctor bill for Sam incurred in 2019 and not paid until 2020
7,600
Operation for Sam
8,500
Prescription medicines for Sam
900
Hospital expenses for Sam
3,500
Reimbursement from insurance company, received in 2020
3,600
The medical expenses for Sam represent most of the 60% that
Bruce contributed toward his father's support.
Other relevant information follows:
Required:
Compute net tax payable or refund due for Alice and Bruce Byrd
for 2020. If they have overpaid, they want the amount to be
refunded to them.