A. Steve Jackson (birthdate December 13, 1965) is a single taxpayer living at 3215 Pacific Dr., Apt.

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A. Steve Jackson (birthdate December 13, 1965) is a single taxpayer living at 3215 Pacific Dr., Apt. B, Pacific Beach, CA 92109. His Social Security number is 465-88-9415. In 2018, Steve’s earnings and income tax withholding as laundry attendant of a local hotel are: 

Earnings from the Ocean View Hotel................$21,500 

Federal income tax withheld................215 

State income tax withheld................100

Steve has a daughter, Janet, from a previous marriage. Janet is 11 years old (Social Security number 654-12-6543). Steve provides all Janet’s support. Also living with Steve is his younger brother, Michael (Social Security number 667-21-8998). Michael, age 47, is unable to care for himself due to a disability. On a reasonably regular basis, Steve has a care giver come to the house to help with Michael. He uses a company called HomeAid, 456 La Jolla Dr., San Diego, CA 92182 (EIN 17-9876543). Steve made payments of $990 to HomeAid in 2018. Janet receives free after-school care provided by the local school district. 

Required: 

Complete Steve’s federal tax return for 2018. Use Form 1040, Schedule 3, Form 2441, Child Tax Credit Worksheet, Form 8812, EITC Worksheet A, and Schedule EIC. 

B. David Fleming is a single taxpayer living at 169 Trendie Street, Apartment 6B, La Jolla, CA 92037. His Social Security number is 865-68-9635 and his birthdate is September 18, 1973. David was employed as a delivery person for a local pizza restaurant. David’s W-2 showed the following:

a Employee S SOcial security number Safe, accurate, FAST! Use Visit the IAS website at www.irs.gow/efile RSe file 865-68


David’s only other source of income during the year was a prize he won appearing on a game show. The game show sent David home with a Form 1099-MISC: 

O CORRECTED (if checked) 1 Rents OMB No. 1545-0115 PAYER'S name, street address, city or town, state or province, countr


He has no other adjustments to income or deductible expenses. Unfortunately, David’s employer did not provide health care to its employees but David signed up for coverage through his state’s health care exchange. The exchange sent him a Form 1095-A as shown on Page 7-63. 

Required: 

Complete David’s federal tax return for 2018. Use Form 1040, Schedule 1, Schedule 2, and Form 8962. Make realistic assumptions about any missing data.

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Related Book For  book-img-for-question

Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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