15 Required information [The following information applies to the questions displayed below.] Part 2 of 2 Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2019 To the friendly student tax preparer: eBook Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. you may recall, I am divorced from my wife, Alice. I have custody of my son, Shady, Jr. I really love the kid. He lives with me full-time, but he goes to Alice's house every other weekend. I provide all of my son's support, and Alice doesn't pay any child support. Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $9,000 in unreimbursed medical expenses. Good thing! can write off medical expenses, right? | contributed a lot of money to charity this year and have receipt documentation for all contributions). I'm such a nice guy!! gave $1,000 in cash to the March of Dimes. I also contributed some shares of stock. I bought the shares years ago for $10, but they were worth $1,000 when I made the contribution. Roca Cola also had a charity drive for the United Way this year and I contributed $90. Turns out, I don't even miss it. On, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate (property) taxes for my new house. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. I coming did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would back to me. That should be all the information you need right now. Please calculate my taxable income and complete pages 1 and 2 of Form 1040 (through taxable income, line 10) and Schedule A. You're still doing this for free, right? Complete pages 1 and 2 of Form 1040 (through taxable income, line 10) and Schedule A. Shady Slim's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Shady Slim: 123-45-6789 Shady Slim Jr: 222-22-2222 (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2019 tax rules regardless of year on form. For medical expenses, use the 10% of AGI threshold.) Required information 1040 for a single taxpayer with one dependent. 1010 PG 1 1010 PG 2 Schedule A Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 2018 Department of the Treasury Internal Revenue Service (99) U.S. Individual Income Tax Return Single Married filing jointly OMB No. 1545-0074 Head of household Filing status Married filing separately IRS Use Only-Do not write or staple in this space Qualifying widower) Your social security number (Enter as xxx xx xxxx) Your first name and initial Last name You were born before January 2, 1954 You are blind Your Standard deduction Someone can daim you as a dependent a If joint retum, spouse's first name and initial Last name Spouse's social security number (Enter as XXX-XX-XXXX) Full-year health care coverage or exempt (see inst) Spause standard deduction Someone can daim your spouse as a dependent Spouse is blind Home address number and street). If you have a P.O box, see instructions. Spouse was born before January 2, 1954 Spause ileries on a separate relun or you were dual-status alien Apt, no City, town or post office state and ZIP code If you have a foreign address, attach Schedule 6 Presidential Election Campaign Check here if you want S3 to go to this fund (soc inst) You Spause If more than four dependents, see inst. and here (4) Vilchild under age 17 qualifies for see inst) Child tax credit Credit for other dependents Dependents (see instructions): (2) Dependents social security number Enteras XXX-XX-XXXX) (3) Dependent's relationship to you (1) First name Last nate Sign Here 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 Your signature Date Your occupation If the IRS sent you an identity Protection PIN, enter it here see inst) Joint return? See instructions Keep a copy for your records Spouse's signature. If a joint retum, both must sign Date Spouse's occupation If the IRS sent you an identity Protection PIN enter it here (see inst) Check it Preparer's name Preparer's signature PTIN Firm's EIN Paid Preparer Use Only Phone no Firm's address Cat No. 113200 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions, THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill Education. 3rd Party Designee Self-employed - Form 1040 (2018) Required information 1040 for a single taxpayer with one dependent. 1040 PG 1 1040 PG 2 Schedule A Page 2 of Form 1040. Page 2 2 Form 1972 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a Attach Form(s) W-2 b Taxable interest 2b 3a 3a Qualified dividends Also attach Form(s) b Ordinary dividends 3b W-2G and 1099-R if 4a IRAs, pensions, and annuities 4a b Taxable amount 4b tax was withheld 5a Social security benefits 5a b Taxable amount 5b 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 6 Standard deduction for- 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6, otherwise, subtract Schedule 1, Single or Married filing line 38, from line 6 , 8 7 separately $12,000 8 Standard deduction or itemized deductions (from Schedule A) 8 9 Qualified business income deduction (see instructions) 9 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less enter-O- 10 . Married filing jointly or Qualifying widow(er). 11 a Tax (see inst) check if any from: 1. Form(s) 8814 2. Form 4972 $24,000 3. b Add any amount from Schedule 2 and check here 11 Head of household 12 a Child tax credit/credit for other dependents $18,000 b Add any amount from Schedule 3 and check here 12 13 Subtract line 12 from line 11. If zero or less enter-O- 13 14 Other taxes. Attach Schedule 4 14 . If you checked any box 15 Total tax. Add lines 13 and 14 15 under Standard deduction, see 16 Federal income tax withheld from Forms W-2 and 1099 16 instructions 17 Refundable credits: a EIC (see inst.) b Sch. 8812 . c Form 8963 dAdd any amount from Schedule 5 17 18 Add lines 16 and 17. These are your total payments 18 Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 19 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 20a Direct deposit? See > Routing number wome c Type: Checking Savings instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 22 Amount you owe Subtract line 18 from line 15. For details on how to pay, see instructions 22 Amount You Owe 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form1040 for instructions and the latest information THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill Education. OOO Form 1040 (2018) 1040 for a single taxpayer with one dependent. 1040 PG 1 1040 PG 2 Schedule A Schedule A of Form 1040. Itemized Deductions SCHEDULE A (Form 1040) Department of the Treasury OMB No. 1545-0074 2018 Go to www.irs.gov/Schedule A for instructions and the latest information Attach to Form 1040 Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line : , 16 Internal Revenue Service (99) Attachment Sequence No. 07 Name(s) shown on Form 1040 s) Your social security number Medical and Dental Caution. Do not include expenses reimbursed or paid by others Expenses 1 Medical and dental expenses (see instructions) ) 2 Enter amount from Form 1040, line 7 3 Multiply line 2 by 10% (0.10) ) 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- 5 State and local taxes Taxes You 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 b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c e Enter the smaller of line 5d and $10,000 ($5,000 if married filing separately) 6 Other taxes List type and amount 5a 5b 5c 5d 5e Interest You Paid Caution: 7 Add lines Se and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098 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 8 Your mortgage interest deduction may be limited (see instructions) 8b 8d 11 c Points not reported to you on Form 1098. See instructions for special rules 8c d Reserved e Add lines Sa through 8c Se 9 Investment interest. Attach Form 4952 if required. (see instructions) 9 10 Add lines 8e and 9 10 Gifts to Charity 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 If you made a gift and 12 got a benefit for it, see 13 Carryover from prior year 13 instructions 14 Add lines 11 through 13 14 Casualty and Theft 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 Losses and enter the amount from line 18 of that form. See instructions 151 Other itemized 16 Otherfrom list in instructions. List type and amount Deductions 16 Total Itemized 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040, line 8 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040. Cat No. 171450 Schedule A (Form 1040) 2018 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill Education. Required information 1040 for a single taxpayer with one dependent. 1040 PG 1 1040 PG 2 Schedule A Page 2 of Form 1040. Page 2 2 Form 1972 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a Attach Form(s) W-2 b Taxable interest 2b 3a 3a Qualified dividends Also attach Form(s) b Ordinary dividends 3b W-2G and 1099-R if 4a IRAs, pensions, and annuities 4a b Taxable amount 4b tax was withheld 5a Social security benefits 5a b Taxable amount 5b 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 6 Standard deduction for- 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6, otherwise, subtract Schedule 1, Single or Married filing line 38, from line 6 , 8 7 separately $12,000 8 Standard deduction or itemized deductions (from Schedule A) 8 9 Qualified business income deduction (see instructions) 9 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less enter-O- 10 . Married filing jointly or Qualifying widow(er). 11 a Tax (see inst) check if any from: 1. Form(s) 8814 2. Form 4972 $24,000 3. b Add any amount from Schedule 2 and check here 11 Head of household 12 a Child tax credit/credit for other dependents $18,000 b Add any amount from Schedule 3 and check here 12 13 Subtract line 12 from line 11. If zero or less enter-O- 13 14 Other taxes. Attach Schedule 4 14 . If you checked any box 15 Total tax. Add lines 13 and 14 15 under Standard deduction, see 16 Federal income tax withheld from Forms W-2 and 1099 16 instructions 17 Refundable credits: a EIC (see inst.) b Sch. 8812 . c Form 8963 dAdd any amount from Schedule 5 17 18 Add lines 16 and 17. These are your total payments 18 Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 19 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 20a Direct deposit? See > Routing number wome c Type: Checking Savings instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 22 Amount you owe Subtract line 18 from line 15. For details on how to pay, see instructions 22 Amount You Owe 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form1040 for instructions and the latest information THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill Education. OOO Form 1040 (2018) 1040 for a single taxpayer with one dependent. 1040 PG 1 1040 PG 2 Schedule A Schedule A of Form 1040. Itemized Deductions SCHEDULE A (Form 1040) Department of the Treasury OMB No. 1545-0074 2018 Go to www.irs.gov/Schedule A for instructions and the latest information Attach to Form 1040 Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line : , 16 Internal Revenue Service (99) Attachment Sequence No. 07 Name(s) shown on Form 1040 s) Your social security number Medical and Dental Caution. Do not include expenses reimbursed or paid by others Expenses 1 Medical and dental expenses (see instructions) ) 2 Enter amount from Form 1040, line 7 3 Multiply line 2 by 10% (0.10) ) 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- 5 State and local taxes Taxes You 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 b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c e Enter the smaller of line 5d and $10,000 ($5,000 if married filing separately) 6 Other taxes List type and amount 5a 5b 5c 5d 5e Interest You Paid Caution: 7 Add lines Se and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098 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 8 Your mortgage interest deduction may be limited (see instructions) 8b 8d 11 c Points not reported to you on Form 1098. See instructions for special rules 8c d Reserved e Add lines Sa through 8c Se 9 Investment interest. Attach Form 4952 if required. (see instructions) 9 10 Add lines 8e and 9 10 Gifts to Charity 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 If you made a gift and 12 got a benefit for it, see 13 Carryover from prior year 13 instructions 14 Add lines 11 through 13 14 Casualty and Theft 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 Losses and enter the amount from line 18 of that form. See instructions 151 Other itemized 16 Otherfrom list in instructions. List type and amount Deductions 16 Total Itemized 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040, line 8 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040. Cat No. 171450 Schedule A (Form 1040) 2018 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill Education.