Barbara Gonzales, age 53, is a self-employed tax attorney (social security number 444-88-9999). She is supporting her mother, Martha Garza, age 85 who lives with her. Marthas social security number is 666-99-4444. Barbara lives in a rental at 4597 Campbell Ave. Campbell, CA 95008

Barbaras office is located at 6578 Hamilton Ave. Ste. 456, San Jose, CA 95130. Her business name is her name- Barbara Gonzales, Attorney. She materially participates in her business. She has the following income and expenses pertaining to her business.

Barbaras gross receipts for 2018 $189,300

Expenses:

Insurance $5800

Office Supplies $4897

Payroll $49,455

Depreciation $1489 ( on her office furniture and computer and printers- you do not have to prepare a depreciation form)

Telephone and internet $5699

Rent $ 18000

Advertising $ 1264

Software fees for tax preparation $8,451

Education needed to keep up on latest tax laws $2575

The business uses the cash basis of accounting.

Other income includes Interest from Wells Fargo, $249.

You do not have to calculate self-employment taxes as this will be covered in another chapter. Barbara sent estimated tax payments to the IRS for the 2018 taxes totaling $15000.

Prepare Barbaras Form 1040 tax return for 2018. Schedules 1, 2 and 3 may be required. It is up to you to determine which ones, if any are necessary. You should also prepare a Schedule C.

A Department of the Treasury-Internal Revenue Service (99) 2019 TU U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only Do not write or staple in this space Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widower) (QW Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address inumber and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your spouse if filing jointy, want $3 to go to this fund. Checking a box below wil not change your tax or refund. You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, ses instructions and here Standard Someone can claim: You as a dependent Your spouse as a dependent U Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were bom before January 2, 1955 Are bind Spouse: Was born before January 2, 1955 is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualities for see instructions): (1) First name Last name Child tax credit Credit for other dependents 3b 5a 1 Wacos, salaries, tips, etc. Attach Formis) W-2 . , . . 2a Tax-exempt interest. . . . 2a b Taxable interest. Attach Sch. B if required 3a Qualified dividends. . . . 3a b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a TRA distributions. . . . . 4a b Taxable amount . . . . . . . Single or Married C Pensions and annuities . . . d Taxable amount . . . Sling separately $12 200 5a Social security benefits. . . b Taxable amount . . . . Married filing 6 Capital gain or loss). Attach Schedule Dif required. If not required, check here . . . . . anty or Qualting widower 7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . . $24.400 Head of b Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income . . . . . . . . household 8a Adjustments to income from Schedule 1, line 22 , . . . . . . . . . . . $18.350 . If you checked b Subtract line Ba from line 7b. This is your adjusted gross income . . any box under 9 Standard deduction or itemized deductions (from Schedule A). . . . Standard Deduction, 10 Qualified business income deduction. Attach For 8995 or Form 8995-A . . . 10 see instructions. 11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O-. . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113203 8b 11b Form 1040 (2018) 12b 13b 15 Form 1040 (2019) Page 2 12a Tax (see inst.) Check if any from Formis 1 8914 2 4972 30 12a b Add Schedule 2, line 3, and line 12a and enter the total . . . . 13a Chid tax credit or credit for other dependents . . . . . . . . . . 13a b Add Schedule 3, line 7, and line 13a and enter the total . . . . . 14 Subtract line 13b from line 12b. If zero or less, enter -0. . . . . . . . 15 Other taxes, including self-employment tax, from Schedule 2, line 10. . . . Add lines 14 and 15. This is your total tax . . . . . 16 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . . . 17 . If you have a 18 Other payments and refundable credits: qualifying child, Eamed income credit (EIC). . . . . . . . . . . . . . . 18a attach Sch. BC b Additional child tax credit. Attach Schedule 8812 . . . . . If you have . . . . 18b nontaxable c American opportunity credit from Form 8863, line 8 . . . . . . . . 18c combat pay, see instructions d Schedule 3, line 14 . . . . . . . . . . . . . . . . . 18d . Add lines 18a through 18d. These are your total other payments and refundable credits . . . 18e 19 Add lines 17 and 18e. These are your total payments . . . . . Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid . 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here . . . . U 21a Direct deposit? Routing number c Type: Checking Savings See instructions d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax. . . 22 Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions You Owe 24 Estimated tax penalty (see instructions) . . . 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. Designee Other than Designee's Phone Personal identification paid preparer) name number PIN Sign Under penalties of perjury, I declare that I have examined his 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 tax payer) is based on all information of which preparer has ary knowledge Here Your signature Date Your occupation If the IRS sent you an identity Protection PIN, enter it here Joint return? (see inst.) D See instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for Identity Protection PIN. enter it here your records. (see inst.) D I Phone no. Email address Preparer's name Preparer's signature Date PTIN Check it: Paid 3rd Party Designee Preparer Firm's name Phone no Self-employed Use Only Fim's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019) No A Department of the Treasury-Internal Revenue Service (99) 2019 TU U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only Do not write or staple in this space Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widower) (QW Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address inumber and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your spouse if filing jointy, want $3 to go to this fund. Checking a box below wil not change your tax or refund. You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, ses instructions and here Standard Someone can claim: You as a dependent Your spouse as a dependent U Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were bom before January 2, 1955 Are bind Spouse: Was born before January 2, 1955 is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualities for see instructions): (1) First name Last name Child tax credit Credit for other dependents 3b 5a 1 Wacos, salaries, tips, etc. Attach Formis) W-2 . , . . 2a Tax-exempt interest. . . . 2a b Taxable interest. Attach Sch. B if required 3a Qualified dividends. . . . 3a b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a TRA distributions. . . . . 4a b Taxable amount . . . . . . . Single or Married C Pensions and annuities . . . d Taxable amount . . . Sling separately $12 200 5a Social security benefits. . . b Taxable amount . . . . Married filing 6 Capital gain or loss). Attach Schedule Dif required. If not required, check here . . . . . anty or Qualting widower 7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . . $24.400 Head of b Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income . . . . . . . . household 8a Adjustments to income from Schedule 1, line 22 , . . . . . . . . . . . $18.350 . If you checked b Subtract line Ba from line 7b. This is your adjusted gross income . . any box under 9 Standard deduction or itemized deductions (from Schedule A). . . . Standard Deduction, 10 Qualified business income deduction. Attach For 8995 or Form 8995-A . . . 10 see instructions. 11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O-. . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113203 8b 11b Form 1040 (2018) 12b 13b 15 Form 1040 (2019) Page 2 12a Tax (see inst.) Check if any from Formis 1 8914 2 4972 30 12a b Add Schedule 2, line 3, and line 12a and enter the total . . . . 13a Chid tax credit or credit for other dependents . . . . . . . . . . 13a b Add Schedule 3, line 7, and line 13a and enter the total . . . . . 14 Subtract line 13b from line 12b. If zero or less, enter -0. . . . . . . . 15 Other taxes, including self-employment tax, from Schedule 2, line 10. . . . Add lines 14 and 15. This is your total tax . . . . . 16 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . . . 17 . If you have a 18 Other payments and refundable credits: qualifying child, Eamed income credit (EIC). . . . . . . . . . . . . . . 18a attach Sch. BC b Additional child tax credit. Attach Schedule 8812 . . . . . If you have . . . . 18b nontaxable c American opportunity credit from Form 8863, line 8 . . . . . . . . 18c combat pay, see instructions d Schedule 3, line 14 . . . . . . . . . . . . . . . . . 18d . Add lines 18a through 18d. These are your total other payments and refundable credits . . . 18e 19 Add lines 17 and 18e. These are your total payments . . . . . Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid . 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here . . . . U 21a Direct deposit? Routing number c Type: Checking Savings See instructions d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax. . . 22 Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions You Owe 24 Estimated tax penalty (see instructions) . . . 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. Designee Other than Designee's Phone Personal identification paid preparer) name number PIN Sign Under penalties of perjury, I declare that I have examined his 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 tax payer) is based on all information of which preparer has ary knowledge Here Your signature Date Your occupation If the IRS sent you an identity Protection PIN, enter it here Joint return? (see inst.) D See instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for Identity Protection PIN. enter it here your records. (see inst.) D I Phone no. Email address Preparer's name Preparer's signature Date PTIN Check it: Paid 3rd Party Designee Preparer Firm's name Phone no Self-employed Use Only Fim's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019) No