Bob and Mary Smith, a married couple, engaged you to prepare their 2018 individual income tax return. Their address is 123 Main Street, Wilmore, KY. Their social security numbers and dates of birth are as follows: S.S.No. 123-456-7890 Date of Birth December 1, 1955 May 5, 1957 Bob Mary 098-765-4321 They provide you with the following income and expense information for 2018: Bob is a CPA and his salary was $150,000. He had $17,500 in federal income taxes withheld, $6,500 in state income taxes withheld, and $3,500 in local income taxes withheld. Mary retired in August of 2018 and began receiving $1,200 per month from a pension. Bob and Mary also have rental property. The net rental income for the year is $25,000. (Do not prepare schedule E for this tax return.) During 2018, they received $150 in interest on their savings account and $250 from a municipal bond. They received $2,500 in ordinary dividends. Bob paid $1,000 per month in alimony from a divorce that was settled in 2012. The recipient's social security number is 765-890-1234 They have the following medical expenses for the year: o Prescription drugs - $150 Doctor visit copays - $250 Physical therapy for an injury - $200 o New eyeglasses for Mary - $50 Dental work - $150 O O O They paid $1,500 with their 2017 Kentucky individual income tax return. They filed the return and made the payment in 2018. Bob and Mary paid $3,500 in real estate property taxes on their home and $550 in property taxes on their vehicles. The outstanding mortgage on their home is $350,000. Bob and Mary also paid $2,500 in real estate property taxes for a vacation home in Oregon. The outstanding mortgage on the vacation home is $250,000. The mortgage interest paid on the primary residence during 2018 was $2,575. The mortgage interest paid on the vacation home during 2018 was $1,550. They paid $250 in credit card interest during 2018. They provide you with the following list of contributions made during the year: o $5,000 to their church $1,500 to The Salvation Army o $500 to Asbury University $250 to the local humane society