JOE AND JILL BIDING TAX PROBLEM --- AC 402 *** This tax problem should serve as an overview of the material covered to this point.*** Joe and Jill Biding are married taxpayers who live at 666, Cooperation Drive, Washington, DC. Joe is 72 years old, while Jill is 48. Their social security numbers are 123-45-6789 (Joe) and 123-45-6781 (Jill). The taxpayers elect to contribute to the election campaign fund. Joe and Jill have six possible (you decide) dependents. Their oldest daughter, Harris (SS# 423-44-3113), is 19 years old and works in Washington, DC where she lives in her own apartment. She is a part-time student at Georgetown majoring in the theatrical arts. She worked earning $4,100. Joe and Jill provided over half of her support. They have a daughter, Yellen, who is 20 years old, goes to college full-time and worked in the summer earning $4,500 (ss# 424-77-6666). She also had unearned income of $2,000 in 2021. They have had a foster child, Hunter, living with them since 06/01/18. He is 8 years old and his Social Security number is 422-45-9843. He attended the “Donkey’s Daycare” ID # 67-08980808 at a cost of $9,200. Joe’s mother, Catherine (ss# 555-22-3333), is 94 years old and lives in a nursing home for medical reasons. Her gross income is $39,000. Joe and Jill provide her $2,000 per month to help cover some of the cost of the nursing home. Her social security number is 455-23-8998 . Jill’s father, Donald, lives with them and is a greeter at Targ-Mart. He earned $10,250 from the job. Joe and Jill provided over 50% of the support of her father. His social security number is 476-99-7374. Joe’s good friend from college, Sven, is down on his luck and living in Mexico. He earned $1,000 for the year. Joe sends him $1,500 per month. He has no social security number. Joe is a lobbyist for the Politico Corporation, which has an excellent retirement plan for its employees (Joe participates in plan). His form W-2 shows his annual salary, federal income tax withholdings, and state income tax withholdings. Wages
