Complete a 1040 pages 1 & 2, schedule A, schedule B, schedule C page 1, schedule SE, and 2441
Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at 3301 Pacific Coast Hwy, Laguna Beach, CA 92651. Brian is an optometrist who owns his business, Corrine is a social worker for Orange County. They have two sons, Brady and Hank. During their trip to China last year, they fell in love with a beautiful 1-year-old girl from an orphanage near Shanghai and are in the process of adopting her. The social security numbers of the four current members of their household are 412-34-5670 for Brian, 412-34-5671 for Corrine, 412-34-5672 for Brady, and 412-34-5673 for Hank. Their birth dates are as follows: Brian, 5/20/1975 Corrine, 7123/1975. Brady, 91/2005 and Hank, 9/1/2008. The following are Brian's income and expense information from his business and Corrine's W-2 from Orange County. Lee's optometrist office income and expenses for the current year Gross income Cost of goods sold (Beginning inventory $45,eee; Purchases $63,000: Ending 5 265,00e 88,809 Enventory $20,e00) Advertising Hages Office rent Other 5,000 32,880 9,680 2,189 The Lees also made $40,000 in federal estimated tax payments during the year The Form W-2 Corrine received from Orange County contained this information: Nages (boax 1) $76,925.04 Federal W/H (box 2) $13,e85.90 Social security wages (box 3) $76,925.04 Social security W/H (box 4) - $ 4,769.35 Medicare wages (box 5)- $76, 925.e4 Medicare W/H (box 6) 1,115.41 State income taxes (box 17)- 2,944.89 In addition, the Lees had the following income and expenses during the year Income Interest from CDs at Pacific Coast Bank Expenses Hortgage interest paid to PC Bank for their home Property taxes paid on their residence Adoption expenses (fees, court costs, and attorney's fees) Child care costs at LB Parks and Recreations after-school program 5,000 $29,500 7,800 8,850 3,580 for Hank for Hank Brian and Corrine had qualifying health care coverage at all times during the tax year. Predar or forms they may need for credits. Do not complete Form 4562 (with or the AMT calculation is not required) For any missing information, make reasonable assumptions. Assume that Brian follows cash basis of accounting. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount.) e the Lees' federal tax return. Use Form 1040, Schedule A, Schedule B, Schedule C, and any additional appropriate schedules e C). (Assume no AMT although it may apply, Form 6251 Use the appropriate Tax Tables or Tax Rate Schedules. 1040 for a couple Married Filing Jointly with two dependents. Schedule C Shedule C Schedule SE 2441 1040 PG1 1040 PG 2 Schedule A Schedule SE Page 2 Page 1 of Form 1040 Form 1040 - U.S. Individual 2017 OMB No. 1545-0074 IRS Use Only- Do not write in this space Last name
