Bob is working on his 2018 Form 1040 - he just finished computing his Adjusted Gross Income ("AGI") on Line 7 of his Form 1040. He has asked if you could help him prepare his 2018 Schedule A - Itemized Deductions. Bob's 2018 AGI reported on his Form 1040, Line 7 is $101,520.00, and he is a single taxpayer.
- Complete Lines 1 - 17 of Schedule A using the table of information provided within the "PBC" document.
SCHEDULE A (Form 1040) Itemized Deductions OMB No. 1845-0074 Go to www.irs. gov/Scheduled for instructions and the latest information. 2018 Department of the Treasury Attach to Form 1040. Attachment Intomal Revenue Service feel Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(a) shown on Form 1040 Your social security number Bob Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions). Dental Enter amount from Form 1040, line 7 2 Expenses 3 Multiply line 2 by 7.5% (0.075) . - 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- Taxes You 5 State and local taxes. 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) . 5b 2018 c State and local personal property taxes 5c d Add lines 5a through 5c . 5d e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) . 5e 6 Other taxes. List type and amount 7 Add lines Se and 6 7 Interest YOU 8 Home mortgage interest and points. If you didn't use all of your Paid Caution: Your home mortgage loan(s) to buy, build, or improve your home, mortgage interest see instructions and check this box . deduction may be mited (8es a Home mortgage interest and points reported to you on Form Instructions 1098 8a 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 8b Points not reported to you on Form 1098. See instructions for special rules . 8c d Reserved . 8d e Add lines Ba through 8c Be 9 Investment interest. Attach Form 4952 if required. See instructions . 9 10 Add lines Be and 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions 11 If you made a 12 Other than by cash or check. If any gift of $250 or more, see gift and got a instructions. You must attach Form 8283 if over $500 12 benefit for it, #e instructions. 13 Carryover from prior year 13 4 Add lines 11 through 13 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See nstructions 15 Other 16 Other-from list in instructions. List type and amount Itemized Deductions 16 Total 7 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040, line B - 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. 17148C Schedule A (Form 1040) 2018AC309 Unit 3: Application Assignment - Individual Deduction Description 2018 Expense Source Amount Document Additional Details Gambling losses 5,150 Casino account Bob reported $4,750 of gambling winnings on his 2018 summary Schedule 1, Line 21 Bob whittles animals out of wood as a hobby and sells Woodworking expenses 3,330 Store receipts them to friends & family; in 2018 he reported $5,100 of woodworking income on his 2018 Schedule 1, Line 21 Unreimbursed qualified Hospital Bob underwent a costly life-saving surgery in 2018 - medical expenses 19,980 invoices this amount represents his out-of-pocket costs that were not reimbursed through insurance Mortgage interest 11,875 Form 1098 Mortgage is secured by Bob's principal residence Home Equity Line of 2,385 Bank statement Bob's principal residence was used to secure the loan; Credit ("HELOC") interest loan proceeds were used to pay off credit card debt Home Equity Line of Bob's principal residence was used to secure the loan; Credit ("HELOC") interest 4,625 Bank statement loan proceeds were used to purchase a new roof for Bob's principal residence State income taxes 8,185 State tax return State sales taxes 2,240 Receipts Real estate taxes 2,650 Bank statement Personal property taxes 470 Car registration Tax preparation fees 300 Receipts Union dues 1,500 Paystubs Cash gifts to charity 750 501(c) (3) receipts Cash gifts to local 1,040 Personal homeless man records
