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Based on the following letter, prepare Shadys 1040. Hello, my name is Shady Slim (SSN: 987-65-4321). I understand you are going to help me figure

Based on the following letter, prepare Shadys 1040.

Hello, my name is Shady Slim (SSN: 987-65-4321). I understand you are going to help me figure out my taxes this year. Its been a busy year and Im a busy man, so let me give you the lowdown on my life and you can do your thing.

I am 38 years old and single, with no children. I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $55,000 in base salary this year. My boss gave me a $5,000 Christmas bonus check onDecember 22. I decided to hold on to that check and not cash it until next year, so I wont haveto pay taxes on it this year. Pretty smart, huh? I also had $6,500 of federal taxes withheld from my paycheck.

As part of my manager duties, I get to decide on certain things like contracts for the company. My good buddy, Eddie, runs a bottling company. I made sure that he won the bottling contract for Roca Cola for this year (even though his contract wasnt the best). Eddie bought me aCorvette this year for being such a good friend. The Corvette cost $50,000. What a great guy!

I like to gamble a lot. I won a $12,000 poker tournament in Las Vegas this year. I also won about $5,000 over the year playing the guys at our Friday night poker game. Can you believe that Ididnt lose anything this year?

Speaking of the guys, one of them hit me with his car as we were leaving the game one night. He must have been pretty ticked that he lost! I broke my right leg and my left arm. I sued the guy and got $11,000 for my medical expenses, and I won $12,000 in punitive damages. Thatll teach him that hes not so tough without his car!

Another bit of bad luck. My uncle Monty died this year. I really liked the guy, but the $200,000 inheritance I received from him made me feel a little better about the loss. I did the smart thing with the money and invested it in corporate bonds. As a result, I received $800 in interest.

Finally, my ex-wife, Alice, is still paying me alimony. Shes a lawyer who divorced me a few years ago because I was unethical or something like that. She sent me $10,000 in alimony payments this year.

Thanks for your help and doing this for free!

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image text in transcribed

Department of the Treasury-Internal Revenue Service 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 Head of householdQualifying widow(er) Your first name and initial Last name Your social security number Your standard deduction:Someone can claim you as a dependent If joint return, spouse's first name and initial You were bon before January 2, 1954 You are blind Last name Spouse's social security number Spouse standard deduction:Someone can claim your spouse as a dependent Spouse 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. City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6 Dependents (see instructions) or exempt (see inst.) see inst.) Yu If more than four dependents Apt. no. Presidential Election Campaign spouse see inst. and here (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 retum 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 Joint return? See instructions. Keep a copy for your records. 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 Use Only For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions 3rd Party Designee Self-employed Firm's name Phone no Firm's address Cat. No. 11320B Form 1040 2018) SCHEDULE 1 (Form 1040) OMB No. 1545-0074 Additional Income and Adjustments to Income 2018 Department of the Treasury Irternal Revenue Service Attach to Form 1040. Go to www.irs.goviForm 1040 for instructions and the latest information. Sequence No. 01 Namels) shown on Form 1040 Your social security number Additional 1-9b Reserved .. Income 11 Alimony . 10 Taxable refunds, credits, or offsets of state and local income taxes 10 12 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 4 Other gains or (losses).Attach Form 4797. . . . 14 16a Reserved 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 8 Farm income or (loss). Attach Schedule F... ..........18 20a Reserved 20b 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to 21 inco enter here and include on Form 1040, line 6. Otherwise, go to line 23 Adjustments 23 Educator expenses . ...23 to Income 24Certain business expenses of reservists, performing artists and fee-basis government officials. Attach Fom 2106 . 24 25 Health savings account deduction. Attach Form 8889 25 26 Moving expenses for members of the Armed Forces. 27 Deductible part of self-employment tax. Attach ScheduleSE 27 28 Self-employed SEP, SIMPLE, and qualified plans28 29 Self-employed health insurance deduction... 29 30 Penalty on early withdrawal of savings .....30 31a Alimony paid b Recipient's SSN 33 Student loan interest deduction 33 36 Add lines 23 through 35 36 For Paperwork Reduction Act Notice, see your tax return instructions. Cat No. 71479 Schedule 1 Fom 1040) 2018

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