1040 Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return (99) 2018 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing status: Single X Married filing jointly Married filing separately Head of household Qualifying widow(er) Your first name and initial Last name Your social security number Your standard deduction: Someone can claim you as a dependent You were born before January 2, 1954 You are blind If joint return, spouse's first name and initial Last name Spouse's social security number Spouse standard deduction: Spouse is blind Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 X Full-year health care coverage Spouse itemizes on a separate return or you were dual-status alien or exempt (see inst.) Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign (see inst.) You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. If more than four dependents, see inst. and v here Dependents (see instructions): (2) Social security number (3) Relationship to you (4) V if qualifies for (see inst.): (1) First name Last name Child tax credit Credit for other dependents Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection Joint return? PIN, enter it See instructions. Date here (see inst.) Keep a copy for Spouse's signature. If a joint return, both must sign. Spouse's occupation If the IRS sent you an Identity Protection your records. PIN, enter it here (see inst.) Paid Preparer's name Preparer's signature PTIN Firm's EIN Check if. Preparer Brd Party Designee Use Only Firm's name Phone no. Self-employed Firm's address KIA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2018)Form 1040 (2018) Page 2 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . O Attach Form(S) W-2. Also attach 2a Tax-exempt interest O b Taxable interest Form(s) W-2G and C b Ordinary dividends O 1099-R if tax was 3a Qualified dividends withheld. 4a IRAs, pensions, and annuities b Taxable amount . . . . O 5a Social security benefits b Taxable amount .. Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 O O Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, . . . . . . O Standard subtract Schedule 1, line 36, from line 6 Deduction for - Standard deduction or itemized deductions (from Schedule A) . .... 24 080 Single or married filing separately, Qualified business income deduction (see instructions) . . $12,000 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- Married filing jointly or Qualifying F a Tax (see inst. ) (check if any from: 1 Form (s) 8814 2 Form 4972 widow(er), $24,000 Head of b Add any amount from Schedule 2 and check here ...... D F household $18,000 12 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here > . If you checked 13 any box under Subtract line 12 from line 11. If zero or less, enter - 0-.. Standard 4 Other taxes. Attach Schedule 4 . . . deduction see instructions. 15 Total tax. Add lines 13 and 14 . . . . . .. 16 Federal income tax withheld from Forms W-2 and 1099 17 Refundable credits: a EIC ( see inst.)_ b Sch. 8812 c Form 8863 Add any amount from Schedule 5 O 18 Add lines 16 and 17. These are your total payments Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 20a Direct deposit? D b Routing number XXXXXXXXX See instructions. d Account number XXXXXXXXXXXXXXXXX c Type: Checking 21 Amount of line 19 you want applied to your 2019 estimated tax |21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions . D 22 23 Estimated tax penalty (see instructions) . . . . . . . 23 O KIA Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2018)(3 OMB No. 1545-0074 SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040) Attach to Form 1040. 2018 Attachment Sequence No. 01 Department of the Treasury Go to www.irs.gov/Form1040 for instructions and the latest information. Internal Revenue Service Your social security number Name(s) shown on Form 1040 1-9b Additional 1-9b Reserved . . . . . . 10 Income 10 Taxable refunds, credits, or offsets of state and local income taxes 11 11 Alimony received Business income or (loss). Attach Schedule C or C-EZ 12 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here 13 14 14 Other gains or (losses). Attach Form 4797 15b 15a Reserved 16a Reserved 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 Farm income or (loss). Attach Schedule F 18 19 Unemployment compensation 19 20a Reserved 20b 21 Other income. List type and amount 21 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 22 0 Adjustments 23 Educator expenses 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 24 25 Health savings account deduction. Attach Form 8889 25 26 Moving expenses for members of the Armed Forces. Attach Form 3903 26 0 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans 28 29 Self-employed health insurance deduction 29 30 Penalty on early withdrawal of savings 30 31a Alimony paid b Recipient's SSN 0 31a 32 IRA deduction 33 Student loan interest deduction 32 0 33 34 Reserved 34 35 Reserved Add lines 23 through 35 35 36 KIA For Paperwork Reduction Act Notice, see your tax return instructions. 36 0 Schedule 1 (Form 1040) 2018SCHEDULE 2 Tax OMB No. 1545-0074 (Form 1040) 2018 Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No. 02 Name(s) shown on Form 1040 Your social security number Tax 38-44 Reserved 38-44 Alternative minimum tax. Attach Form 6251 Excess advance premium tax credit repayment. Attach form 8962 Add the amounts in the far right column. Enter here and include on Form 1040, line 11 . .... O KIA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 2 (Form 1040) 20185 SCHEDULE 3 Nonrefundable Credits OMB No. 1545-0074 (Form 1040) 2018 Department of the Treasury Attach to Form 1040. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 03 Name(s) shown on Form 1040 Your social security number Nonrefundable 48 Foreign tax credit. Attach Form 1116 if required Credits 49 Credit for child and dependent care expenses. Attach Form 2441 49 50 Education credits from Form 8863, line 19 50 51 Retirement savings contributions credit. Attach Form 8880 51 52 Reserved 52 53 Residential energy credit. Attach Form 5695 53 54 Other credits from Form a 3800 b 8801 54 55 Add the amounts in the far right column. Enter here and include on Form 1040, line 12 55 0 KIA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 3 (Form 1040) 2018SCHEDULE 4 OMB No. 1545-0074 (Form 1040) Other Taxes 2018 Department of the Treasury Attach to Form 1040. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 04 Name(s) shown on Form 1040 Your social security number Other 57 Taxes 57 Self-employment tax. Attach Schedule SE 58 Unreported social security and Medicare tax from: Form a 4137 b] 8919 58 59 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required . . 59 60a Household employment taxes. Attach Schedule H 60a b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 60b 61 Health care: individual responsibility (see instructions) 61 62 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) 62 63 Section 965 net tax liability installment from Form 965-A . . . . 63 64 Add the amounts in the far right column. These are your total other taxes. Enter here and on Form 1040, line 14 64 0 KIA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 4 (Form 1040) 2018SCHEDULE 5 T (Form 1040) Other Payments and Refundable Credits OMB No. 1545-0074 Attach to Form 1040. 2018 Department of the Treasury Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No. 05 Name(s) shown on Form 1040 Your social security number Other 65 Reserved 65 Payments 56 and 66 2018 estimated tax payments and amount applied from 2017 return Refundable 67a Reserved 67 Credits b Reserved 67b 68-69 Reserved 68-69 70 Net premium tax credit. Attach Form 8962 70 71 Amount paid with request for extension to file (see instructions) 71 72 Excess social security and tier 1 RRTA tax withheld 72 73 Credit for federal tax on fuels. Attach Form 4136 73 74 Credits from Form: a 2439 b Reserved c 8885 a 74 75 Add the amounts in the far right column. These are your total other payments and refundable credits. Enter here and include on Form 1040, line 17 75 KIA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 5 (Form 1040) 2018SCHEDULE 6 Foreign Address and Third Party Designee OMB No. 1545-0074 (Form 1040) 2018 Department of the Treasury Attach to Form 1040. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 05A Name(s) shown on Form 1040 Your social security number Foreign Foreign country name Foreign province/county Foreign postal code Address Third Party Do you want to allow another person to discuss this return with the IRS (see instructions)? | Yes. Complete below. X NO Designee Designee's Phone Personal identification number name no. D (PIN) KIA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 6 (Form 1040) 20189 SCHEDULE A (Form 1040) Itemized Deductions Go to www.irs.gov/ScheduleA for instructions and the latest information. OMB No. 1545-0074 Department of the Treasury Attach to Form 1040. (99) | Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. 2018 Internal Revenue Service Attachment Name(s) shown on Form 1040 Sequence No. 07 Your social security number Medical Caution. Do not include expenses reimbursed or paid by others. and 0 Dental Medical and dental expenses (see instructions) Expenses 2 Enter amount from Form 1040, line 7 2 3 Multiply line 2 by 7.5% (0.075). 0 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box . D 5a b State and local real estate taxes (see instructions) 5b 0 c State and local personal property taxes 5c d Add lines 5a through 5c . . 5d 0 e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) . . 5e 0 6 Other taxes. List type and amount > 6 0 7 Add lines 5e and 6 7 Interest You Home mortgage interest and points. If you didn't use all of your Paid home mortgage loan(s) to buy, build, or improve your home, Caution: Your see instructions and check this box mortgage interest deduction may be a Home mortgage interest and points reported to you on Form limited (see 1098 ga instructions b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8b c Points not reported to you on Form 1098. See instructions for special rules 8c d Reserved 8d e Add lines 8a through 8c Be 0 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines 8e and 9 10 Gifts by cash or check. If you made any gift of $250 or more, . . .. 0 Gifts to 11 Charity see instructions 11 12 If you made a Other than by cash or check. If any gift of $250 or more, see gift and got a instructions. You must attach Form 8283 if over $500 12 benefit for it, 13 Carryover from prior year see instructions. 14 Add lines 11 through 13 13 14 Casualty and Theft Losses 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified instructions disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See 0 Other 16 Other - from list in instructions. List type and amount 15 Itemized Deductions 0 Total 17 16 Itemized Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040, line 8 Deductions 18 If you elect to itemize deductions even though they are less than your standard 17 deduction, check here KIA For Paperwork Reduction Act Notice, see the instructions for Form 1040. Schedule A (Form 1040) 2018interest SCHEDULE B dividend TO (Form 1040) Interest and Ordinary Dividends OMB No. 1545-0074 Department of the Treasury (99) Go to www.irs.gov/ScheduleB for instructions and the latest information. Internal Revenue Service 2018 Name(s) shown on return Attach to Form 1040. Attachment Sequence No. 08 Your social security number Part I List name of payer. If any interest is from a seller-financed mortgage and the Amount Interest buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address (See instructions and the instructions for Form 1040, line 2b.) Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter W N Add the amounts on line 1 . .. . . . . . . 0 the total interest shown on that Excludable interest on series EE and I U.S. savings bonds issued after 1989. form. Attach Form 8815 . . 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040, line 2b 0 Note: If line 4 is over $1,500, you must complete Part III. Amount Part II 5 List name of payer Ordinary Dividends (See instructions and the instructions for Form 1040, line 3b.) 5 Note: If you received a Form 1099-DIV O substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040, line 3b Note. If line 6 is over $1,500, you must complete Part III. 6 Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. 7a At any time during 2018, did you have a financial interest in or signature authority over a financial Yes No Foreign Accounts account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions. . and Trusts . . . . See instructions.) If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located 8 During 2018, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes," you may have to file Form 3520. See instructions. KIA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule B (Form 1040) 2018SCHEDULE C (Form 1040) Profit or Loss From Business OMB No. 1545-0074 (Sole Proprietorship) Department of the Treasury Go to www.irs.gov/ScheduleC for instructions and the latest information. 2018 Internal Revenue Service (99 ttachment Name of proprietor Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Social security number (SSN) A Principal business or profession, including product or service (see instructions) B Enter code from instructions Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) E Business address (including suite or room no.) City, town or post office, state, and ZIP code F Accounting method: (1) X Cash (2) Accrual (3) Other (specify) _ G Did you "materially participate" in the operation of this business during 2018? If "No," see instructions for limit on losses Yes No H If you started or acquired this business during 2018, check here D Did you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) Yes X No If "Yes," did you or will you file required Forms 1099? Yes No Part | |Income Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on form W-2 and the "Statutory employee" box on that form was checked. 2 Returns and allowances . . 2 A W Subtract line 2 from line 1 . . 3 0 Cost of goods sold (from line 42) 4 0 Gross profit. Subtract line 4 from line 3 5 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 Gross income. Add lines 5 and 6 0 Part II Expenses. Enter expenses for business use of your home only on line 30. Advertising . 8 18 Office expense (see instructions) 18 Car and truck expenses (see 0 19 Pension and profit-sharing plans 19 instructions) . 20 Rent or lease (see instructions): 10 Commissions and fees . ... 10 a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) 11 b Other business property 20b 12 Depletion 12 21 Repairs and maintenance . . . . 21 13 Depreciation and section 179 22 Supplies (not included in Part III) . . 22 expense deduction (not included in Part III) (see 23 Taxes and licenses 23 instructions) 13 24 Travel and meals: Employee benefit programs 24a 0 14 other than on line 19) . . . . . 14 a Travel . . b Deductible meals (see 15 Insurance (other than health) 15 instructions) 24b 0 16 Interest (see instructions) 25 Utilities 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits) 26 b Other 16b 27a Other expenses (from line 48) 27a 17 Legal and professional services 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 28 29 Tentative profit or (loss). Subtract line 28 from line 7 29 0 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: Method Worksheet in the instructions to figure the amount to enter on line 30 Use the Simplified Net profit or (loss). Subtract line 30 from line 29. 30 0 31 . If a profit, enter on both Schedule 1 (Form 1040), line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. . If a loss, you must go to line 32. 31 0 32 If you have a loss, check the box that describes your investment in this activity (see instructions). If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 12, (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). 32a All investment is at risk. Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited. 32b Some investment is not at risk. KIA For Paperwork Reduction Act Notice, see the separate instructions. Schedule C (Form 1040) 2018Schedule C (Form 1040) 2018 (12 Part III | Cost of Goods Sold (see instructions) Page 2 33 Method(s) used to value closing inventory: a cost 34 b Lower of cost or market Other ( attach explanation) Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation . . . . . . . . . . . . . . ........... Yes NO 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . 35 36 Purchases less cost of items withdrawn for personal use 36 37 Cost of labor. Do not include any amounts paid to yourself 37 38 Materials and supplies . 38 39 Other costs 39 40 Add lines 35 through 39 . 40 41 Inventory at end of year 41 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 42 Part IV | Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 43 When did you place your vehicle in service for business purposes? (month, day, year) 44 Of the total number of miles you drove your vehicle during 2018, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? . .. Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction? Yes No b If "Yes," is the evidence written? Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30 Yes No 48 Total other expenses. Enter here and on line 27a KIA 48 0 Schedule C (Form 1040) 2018Schedule C (Form 1040) 2018 Part IV 13 Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 Page 3 Form 4562. and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file 43 When did you place your vehicle in service for business purposes? (month, day, year) - 44 Of the total number of miles you drove your vehicle during 2018, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction? Yes No b If "Yes," is the evidence written? Yes No Part IV| Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 43 When did you place your vehicle in service for business purposes? (month, day, year) 44 Of the total number of miles you drove your vehicle during 2018, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) Other 45 Was your vehicle available for personal use during off-duty hours? . . . Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction? Yes No b If "Yes," is the evidence written? Yes No Part IV | Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 13 When did you place your vehicle in service for business purposes? (month, day, year) 44 Of the total number of miles you drove your vehicle during 2018, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction? Yes No b If "Yes," is the evidence written? . .... Yes No KIA Schedule C (Form 1040) 2018SCHEDULE D (Form 1040) Capital Gains and Losses OMB No. 1545-0074 Department of the Treasury Internal Revenue Service (99) Attach to Form 1040 or Form 1040NR. Go to www.irs.gov/ScheduleD for instructions and the latest information. 2018 Name(s) shown on return Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 Attachment Sequence No. 12 Your social security number Part I Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less (see instructions) lines below. See instructions for how to figure the amounts to enter on the (g) (h) Gain or (loss) (d) (e) Adjustments Subtract column (e) This form may be easier to complete if you round off cents to Proceeds Cost to gain or loss from from column (d) and whole dollars (sales price) (or other basis) Form(s) 8949, Part I, line 2, column (g) combine the result with column (g) 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b O O 1b Totals for all transactions reported on Form(s) 8949 with Box A checked 0 2 Totals for all transactions reported on Form(s) 8949 with Box B checked O 0 0 0 3 Totals for all transactions reported on Form(s) 8949 with Box C checked O 0 A 0 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from 5 Schedule(s) K-1. 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions. 6 0 ) 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part Ill on page 2 . 0 Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) See instructions for how to figure the amounts to enter on the lines below. (d) (g) (h) Gain or (loss) Proceeds (e) Adjustments Cost to gain or loss from Subtract column (e) This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part II, from column (d) and combine the result with whole dollars. line 2, column (g) column (g) 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b 0 O Totals for all transactions reported on Form(s) 8949 with Box D checked 0 0 9 Totals for all transactions reported on Form(s) 8949 with Box E checked 0 0 O 0 10 Totals for all transactions reported on Form(s) 8949 with Box F checked O O 0 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 11 0 12 Net long-term gain or (loss) from partnerships, $ corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions 13 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover 0 14 Worksheet in the instructions .. . . ............... Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on 14 0 ) 15 page 2 . For Paperwork Reduction Act Notice, see your tax return instructions. 15 0 KIA Schedule D (Form 1040) 2018schedule D (Form 1040) 2018 Page 2 Part III Summary 16 Combine lines 7 and 15 and enter the result 16 . If line 16 is a gain, enter the amount from line 16 on Schedule 1 (Form 1040), line 13, or Form 1040NR, line 14. Then go to line 17 below. . If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. . If line 16 is zero, skip lines 17 through 21 below and enter -0- on Schedule 1 (Form 1040), line 13, or Form 1040NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet 18 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet 19 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions or Form 1040, line 11a (or in the instructions for Form 1040NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Schedule 1 (Form 1040), line 13, or Form 1040NR, line 14, the smaller of: . The loss on line 16; or . ($3,000), or if married filing separately, ($1,500) . . . .. .. 21 ( Note: When figuring which amount is smaller, treat both amounts as positive numbers. Do you have qualified dividends on Form 1040, line 3a, or Form 1040NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a (or in the instructions for Form 1040NR, line 42). X No. Complete the rest of Form 1040 or Form 1040NR. KIA Schedule D (Form 1040) 2018SCHEDULE SE (Form 1040) Self-Employment Tax OMB No. 1545-0074 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information. Internal Revenue Service (99) Attach to Form 1040 or Form 1040NR. 2018 Attachment Name of person with self-employment income (as shown on Form 1040 or Form 1040NR) Social security number of person Sequence No. 17 with self-employment income Before you begin: To determine if you must file Schedule SE, see the instructions. May I Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. Did you receive wages or tips in 2018? No Yes Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe self-employment Yes Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from Yes tax on other earnings? self-employment more than $128,400? No No Are you using one of the optional methods to figure your net Did you receive tips subject to social security or Medicare tax Yes earnings (see instructions)? Yes that you didn't report to your employer? No No No Did you receive church employee income (see instructions) Yes Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? Yes reported on Form W-2 of $108.28 or more? No You may use Short Schedule SE below You must use Long Schedule SE on page 2 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. la Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. 1a b . . ... 0 If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 1b 0 ) 2 Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. Ministers and members of religious orders, see instructions for types of income to report on his line. See instructions for other income to report . . . 2 0 3 Combine lines 1a, 1b, and 2. 3 4 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax; don't file this schedule unless you have an amount on line 1b 4 0 Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, . . . . . see instructions. 5 Self-employment tax. If the amount on line 4 is: . $128,400 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55. More than $128,400, multiply line 4 by 2.9% (0.029). Then, add $15,921.60 to the result. Enter the total here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55. Deduction for one-half of self-employment tax. 5 0 Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27 6 KIA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule SE (Form 1040) 201schedule SE (Form 1040) 2018 ome of person with self-employment income (as shown on Form 1040 or 1040NR) Attachment Sequence No. 17 Social security number of person Page 2 with self-employment income Section B-Long Schedule SE Part 1 Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions. Also see instructions for the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I la Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. Note: Skip lines 1a and 1b if you use the farm optional method (see instructions) 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH . . 1b 2 Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report. Note: Skip this line if you use the nonfarm optional method (see instructions) 3 Combine lines 1a, 1b, and 2. IN 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions 4a b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here . . . . 4b c Combine lines 4a and 4b. If less than $400, stop; you do not owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -0- and continue Ac 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income 5a b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- 5b 6 Add lines 4c and 5b 6 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2018 128, 400.00 Ba Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $128,400 or more, skip lines 8b through 10, and go to line 11 8a b Unreported tips subject to social security tax (from Form 4137, line 10) 8b c Wages subject to social security tax (from Form 8919, line 10) 8c d Add lines 8a, 8b and 8c 8d 9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 9 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) . 10 11 Multiply line 6 by 2.9% (0.029) . . ... 11 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55 . . . . 12 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27 13 Part II Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income! wasn't more than $7,920 or (b) your net farm profits were less than $5,717. 14 Maximum income for optional methods 14 15 Enter the smaller of: two-thirds (2/3) of gross farm income (not less than zero) or $5,280. Also 5, 280.00 include this amount on line 46 above Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits were less than $5,717 15 and also less than 72.189% of your gross nonfarm incomes and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times. 16 Subtract line 15 from line 14 . . .. 16 17 Enter the smaller of: two-thirds (2/3) of gross nonfarm income* (not less than zero) or the amount on line 16. Also include this amount on line 4b above From Sch. F, line 9, and Sch. K-1 (Form 1065), box 14, code B. 2 From Sch. F, line 34, and Sch. K-1 (Form 1065), box 14, code A-minus the 3 From Sch. C, line 31; Sch. C-EZ, line 3; Sch. K-1 (Form 1065), box 14, code A; and Sch. K-1 (Form 1065-B), box 9, code J1. method. amount you would have entered on line 1b had you not used the optional From Sch. C, line 7; Sch. C-EZ, line 1; Sch. K-1 (Form 1065), box 14, code KIA C; and Sch. K-1 (Form 1065-B), box 9, code J2. Schedule SE (Form 1040) 2018COMPREHENSIVE PROBLEM 1:7-62 Dan and Cheryl are married, file a joint return, and have no children. Dan, age 45, is an independent contractor working in pharmaceutical sales and Cheryl, age 42, is a nurse at a local hospital. Dan's SSN is 400-20-1000 and Cheryl's SSN is 200-40-8000 and they reside at 2033 Palmetto Drive, Atlanta, GA 30304. Dan is paid according to commissions from sales, and he has no income tax or payroll tax withholdings. Dan operates his busi- ness from his home office. During 2018, Dan earned total commissions in his business of $125,000. Cheryl earned a salary during 2018 of $45,400, with the following withhold- ings: $6,000 federal taxes, $1,800 state taxes, $2,815 OASDI, and $658 Medicare taxes. During 2018, Dan and Cheryl had interest income from corporate bonds and bank ac- counts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2018: LTCG $4,900 LTCL (3,200) STCG 0 STCL (7,800) He had no capital loss carryovers from previous years. Dan does a considerable amount of travel in connection with his business and uses his own car. During 2018, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the follow- ing travel expenses while away from home during the year: Hotel $4,200 Meals 820 Entertainment of customers 1,080 Tips 100 Laundry and cleaning 150 Total $6,350 Dan uses the simplified method to deduct expenses for his office-in-home. His office measures 15 feet by 12 feet in size. Cheryl incurred several expenses in connection with her nursing job. She paid $450 in professional dues, $200 in professional journals, and $350 for uniforms. Dan and Cheryl had the following other expenditures during the year: Health insurance premiums (after-tax) $ 4,400 Doctor bills 470 Real estate taxes on home 6,800 Personal property taxes 1,400 Mortgage interest-all deductible 7,400 Charitable contributions-cash 9,000 Charitable contributions-GE stock owned for 5 years: FMV $8,000 Adjusted basis 2,000 Tax preparation fees 750 During 2018, Dan and Cheryl paid federal and state estimated tax payments on a quarterly basis. Federal payments for the year amounted to $24,000. State estimated pay- ments for the year amounted to $2,200. Compute Dan and Cheryl's income tax liability for 2018. Disregard the alternative minimum tax