Chris and Stefani Green (both 48 years old) live with their two boys at 847 Victoria Lane, Riverside, California 92154. Chris is an accountant and owns his own business. Stefani is an elementary school principal. Their children, Justin and Jordan, are ages 17 and 9, respectively. Below are the Social Security numbers for the family:

Chris	495-77-7777
Stefani	919-77-8888
Justin	603-55-5555
Jordan	652-44-4444

Chris runs his accounting business out of his home. The name of the business is ABC Accounting (EIN is 37-1112225 and principal business code 541219). Chris uses the cash method of accounting. His business had the following income and expenses for the year.

Gross Revenues	$ 86,000
Expenses:
Advertising	2,100
Office Supplies	800
Travel	6,145
Business Meals	2,400
Taxes & Licenses	2,800
Wages	34,000
Professional Org. Dues	650
Legal Fees	10,500
Business Insurance	1,200
11,400 business miles & 3,200 personal miles use standard mileage method ($.58) and report as car and truck expenses.

Chris has an office in his home, so he will be taking the home office deduction (use Form 8829, not the Simplified Method). The office is 300 square feet and his home is 3,000 square feet.

The following expenses represent amounts paid for the entire house.

Insurance	$ 500
Utilities	1,000 * See Itemized Deduction section above for Home Real Estate Taxes and Home Mortgage Interest amounts.

Chris and Stefani paid the following expenses during the year (assume taxpayers have necessary receipts):

Medical and dental bills	$ 8,750
Real estate taxes on home (total)	7,500
State income taxes	6,900
Donations to church	4,750
Donations to needy people	200
Clothing donations to Goodwill	300
Personal Property Taxes Value Based	200
Home mortgage interest (total)	15,900

Stefanis W-2 from the school district showed the following:

Wages: $86,925

Federal Income Tax Withheld: $4,714

Chris and Stefani paid $3,500 to Friendly Hills Child Care Center for after-school care for Jordan. Friendly Hills is located at 111 Main Street Riverside, California 92154 and their federal identification number is 39-9991111.

Stefani earned her bachelors degree in 2014 (and has used up her American Opportunity Credit in prior years). In 2019, during the evenings, Stefani attended California State University to earn her Masters degree in Mathematics. She is hoping to be able to teach at a community college eventually. Her tuition for the year reported on a 1098-T was $5,000 (make reasonable assumptions about missing data.)

Chris and Stefani also earned $1,700 of interest income from California State Bank during the year and had reported dividends on 1099-DIV:

Stein Mutual	$ 400 box 1A (ordinary) & $0 box 1B (qualified)
Janis Funds	$ 800 box 1A (ordinary) & $0 box 1B (qualified)

Chris and Stefani own a cabin (3105 Stone Road, Big Bear, CA 92156). They did not use the property for personal use at all during the year. The rental does not qualify for the Qualified Business Income Deduction. The revenue and expenses for the rental property are:

Rental Income	$ 18,000
Expenses:
Insurance	1,200
Property Taxes	2,500
Management Fees	1,600
Cleaning/Maintenance	1,100
Mortgage Interest	9,000
Repairs	960
Utilities	450

Stefani and Chris each put $5,000 into an IRA for 2019. Neither are eligible plan participants at work.

Chris likes to play the slot machines at the local casino. He had $2,000 in gambling winnings and $6,000 in gambling losses.

Chris has a qualified education loan and he paid $350 in student loan interest for the year.

Stephani maintained health insurance for the entire family for all 12 months of 2018 under her employers qualifying high-deductible plan. She contributed $2,500 to a qualified Health Savings Accounting (HSA) in 2019 and did not take any distributions out of the plan.

Stefani has an ex-husband, Jim Goodyear (SSN 555-99-8888) and according to their 2016 divorce decree she is required to pay him $400 in alimony per month, for a total of $4,800 annually.

Chriss wealthy uncle died during the year and Chris received a $100,000 inheritance.

In 2019, Chris and Stefani received a state income tax refund from their 2018 tax return of $858. They itemized deductions on their 2018 return and received a tax benefit from this deduction.

Stefani and Chris paid $1,000 in Federal Tax Estimates for 2019.

Complete only those forms and schedules the Greens would be required to file with the IRS (1040, Sch 1, Sch 2, Sch 3, Sch A, Sch B, Sch C, Sch E, Sch SE, 2441, 8863, 8829, 8889, 8995)

Remember: Use 10% as the subtraction percentage for Schedule A line 3. The form is preprinted with 7.5% but we are using 10% in this class this term.