Chapter 6 Out of Class Return

During 2019, Jason and Vicki Hurting, who are married with two children and filing jointly, had the following tax information. Jason owns a cash-basis landscaping business, and Vicki works as a sales executive for a manufacturing business. Jason (SSN 412-34-5670) and Vicki (SSN 412-34-5671) reside at 123 Bate Street, Bright, AL 36116. Both children are under the age of 17: Jason Jr. (412-34-5672), date of birth 7/20/11 Catlin (412-34-5673), date of birth 1/08/15 Vickis W-2 information is as follows:

Wages	$	94,000
Federal withholding		22,000
Social security wages		94,000
Social security withholding		5,828
Medicare withholding		1,363
State withholding		4,700
Other income:
1099-G Alabama state tax refund is taxable because $4,700 was deducted on last years return	$	423
1099-INT First Bank of Alabama		225
1099-DIV IBM, Inc.Ordinary dividends		125
Qualified dividends		125

Jasons landscaping business (business code 811490):

Revenue	$	153,000
Wages		41,600
Payroll tax		3,182
Cell phone charge		425
Assets ( 179 elected)

Item	Date Purchased	Business Use Amount		Percentage
Truck (100% business)	2/05/19	$	28,000	100	%
Mower 1	3/08/19		12,000	100
Mower 2	3/08/19		3,400	100
Equipment	6/25/19		1,595	100

The truck was over 6,000 lbs. The Hurtings had the following itemized deductions:

State income tax withholding (from above)	$	4,700
Real estate tax		2,100
Personal property tax		425
Mortgage interest		8,300
Charitable contributions		2,400

The Hurtings made four federal estimated payments of $2,500 each on their due dates.

Required:

Prepare Form 1040 plus appropriate schedules for the Hurtings for 2019. The Hurtings had qualifying health care coverage at all times during the tax year. Use the appropriate Tax Rate Schedules.

You will need the following forms:

• 1040
• Schedule 1
• Schedule 2
• Schedule 3
• Schedule C
• Schedule SE
• Form 4562