Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2016. Alfred and Beulah will file a joint return for 2018. Alfred's Social Security number is 111-11-1112. Beulah's Social Security number is 123-45-6789, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304.

Alfred was divorced from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2018. In addition, in January 2018, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788.

Alfred's salary for 2018 is $150,000, and his employer, Cherry, Inc. (Federal I.D. No. 98-7654321), provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes.

Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes.

Alfred and Beulah had interest income of $500. They receive a $1,900 refund on their 2017 state income taxes. They itemized deductions on their 2017 Federal income tax return (total of $15,000). Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2018. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2018 and do not want to contribute to the Presidential Election Campaign.

Compute the Olds' net tax payable (or refund due) for 2018. If you use tax forms for your solution, you will need Form 1040 and Schedules A and B (if available).

1040 US Individual Income Tax Retum 2018 Department of the Treasury-Intenal Revenue Service OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Filing statussingle Married filing jointly Married filing separately Head of household Qualifying widow(er Your first name and initial Alfred E. Last name Old Your social security number Your standard deduction: Someone can claim you as a dependent If joint return, spouse's first name and initial Beulah A You were born before January 2, 1954 You are blind Last name Crane Spouse's social security number 1 23 4 5 6 7 8 9 Spouse standard deduction Someone can claim your spouse as a dependent Spou se was born before January 2, 1954 Full-year health care coverage Spouse is blind Spouse itemizes on a separate return or you were dual-status alien Home address (number and street). If you have a P.O. box, see instructions. 211 Brickstone Drive or exempt (see inst.) (see inst.) YouSpouse If more than four dependents, Apt. no. Presidential Election Campaign City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6 Atlanta, GA 30304 Dependents (see instructions): (1) First name see inst. andhere (2) Social security number (3) Relationship to you (4) if qualifies for (see inst.): Last name Child tax credit Credit for other dependents Sign Here Joint return? See instructions. Keep a copy for your records. 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 If the IRS sent you an Identity Protection PIN, enter it here (see inst Your signature Date Your occupation If the IRS sent you an ldentity Protection PIN, enter it here (see inst Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Preparer's name Preparer's signature PTIN Firm's EIN Check if: Paid Preparer 3rd Party Designee Self-employed Use OnlyFirm's address Firm's name Phone no. For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2018) Form 1040 (2018) Page 2 2a Tax-exempt interest . . b Taxable interest .. - b Ordinary dividends.. b Taxable amount... b Taxable amount .. - 2b 3b 4b 5b 6 Attach Form/s) W-2. Also attach 3a Qualified dividends .. . Fomla) w.2G and 4a IRAs, pensions, and annuities - 1099-R tax was withheld. 5a Social security benefits .. 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise subtract Schedule 1, line 36, from line 6... Standard . Deduction for- 8 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . . 8 Single or married filing separately $12,000 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0 1 9 Married filing a Tax (see inst) (check if any from: 1 Form(s) 8814 2 Form 4972 3 jointly or Qualyn widow(er). $24,000 b Add any amount from Schedule 2 and check here............ a Child tax credit/credit for other dependents Subtract line 12 from line 11. If zero or less, enter-0- 12 b Add any amount from Schedule 3 and check here12 13 . Head of household, $18,000 13 If you checked |14 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . . any box under Standard 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 18 Add lines 16 and 17. These are your total pa 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.... 17 18 19 20a Refund Direct deposit? b Routing number See instructions. c Type: Savings d Account number 21 22 23 Estimated tax Amount of line 19 you want applied to your 2019 estimated tax 21 Amount You Owe Amount you owe. Subtract line 18 from line 15, For details on how to pay, see instructions 22 . . . ee instruction 23 Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2018)