Raoul and Alice Cramden are married and have three children, Norton, Fred, and Cardi. Raoul is a security guard and Alice is yoga instructor. They file as Married Filing Jointly. Raoul has a car detailing business, so he also filed Schedule C. He also is paying off his student loan and will deduct the interest. Raoul was unemployed for several weeks during the year. Their W-2 forms are shown below.

a. Fill in Box 4, FICA tax witheld, with the correct entry, for Alice's W-2

b. Fill in Box 6, Medicare tax withheld, with the correct entry, for Alice's W-2

c. Complete their form 1040, with Schedule 1 and Schedules A and B, using Social Security numbers 000-00-0000 and their financial information below
Taxable interest:
Dividends:
Troy Savings $762
Boeing $340
Refund from last year's state income tax: $657
Hendrix County Bank $441
Amazon $1,115
Taxable business income from Schedule C: $2,442 from Raoul's business
Unemployment compensation: $1,977
Prize from state lottery: $1,000
Penalty for early withdrawal of interest: $28 Student loan interest that is deductible: $1,871 for the year
Medical Expenses: Insurance $11,098; Prescriptions $310; Doctors $5,111; Dentists $2,816; Eyeglasses $3 Their insurance covered 80% of the medical expenses.
Taxes: State income tax is from W-2; real estate taxes $6,213
Home mortgage interest paid: $8,177 Contributions: cash $907, used clothing and furniture $850
Casualty and theft losses: They had flood damage, not covered by insurance, of $15,098, and a designe wallet (worth $250) with $600 cash was stolen while on vacation .
Child care credits: $1,215 (They had to pay for day care when both parents were working).​