Complete FORM 1040 for individual tax return

Information Provided by Leslie and Ben Assume that all information pertains to tax year 2019 unless otherwise indicated. 1) Leslie (age 36) and Ben (35) are happily married. They have an 8-year-old son, Ron, who lives with them. They also have an 18-year old daughter, April. April also lives at home, and is a full-time student at the University of Illinois. April earned $9,000 in 2019 from a part-time job. This is less than half the cost of supporting April. 2) Leslie is an engineer who earned $160,000 in 2019. According to her W-2 forms, Leslie's employer withheld a total of $34,000 in federal income taxes and $10,000 in Illinois income taxes from her paychecks during the tax year. 3) Ben is a landscape designer. His business is taxed as a sole proprietorship and uses the cash method of accounting. During 2019, Ben collected $165,000 in sales revenue. Additionally, in 2019 he completed the landscaping for three clients that have not yet paid their invoices which total $24,000. Ben does not have any employees and made no payments requiring issuance of a Form 1099. Ben's expenses include advertising costs of $4,000, legal and consulting fees of $5,500, business insurance of $10,000, landscape materials and supplies of $42,000 and office supplies $1,000. Ben's business does not involve inventory. Ben has converted the garage of their family home into a dedicated space for his business. He stores all equipment, materials and supplies in the garage. The garage also has an office area where he maintains the business's customer files and accounting documents. The converted garage is used 100% for his business and represents 420 square feet of his 3,800 square foot home. Ben also has a truck that he uses 90% for business (10% personal). He purchased the truck in 2017 and has always used the standard mileage method to determine business expenses. In 2019, he drove the truck 22,500 total miles. He has supporting documentation for his business miles. Ben paid $3,000 each quarter in estimated payments for federal income tax. He did not make quarterly payments for Illinois state taxes. 4) Leslie and Ben received $200 of interest income from bonds issued by the City of Chicago. They also received $500 of qualified dividend income (Form 1099-DIV) from NBC Corp. 5) Ben and Leslie paid $13,530 in principal payments and $9,432 in interest payments on their home mortgage for their primary residence (Form 1098). They also paid local real property taxes of $4,450 on their home. 6) The also Knope-Wyatts paid $15,000 in tuition and fees for their daughter to attend UIUC. 7) The Knope-Wyatts made the following charitable contributions: $3,500 to the United Way; $3,000 to the American Cancer Society; $1,000 to the University of Illinois Alumni Association; and $450 contribution of household goods to Goodwill. Other than the Goodwill donation, all gifts were made by check. Appropriate documentation has been maintained for all charitable contributions. 8) Leslie and Ben provided documentation for additional income/expenses during tax year 2019: a. $200 state personal property taxes on Leslie's car b. $3,400 gambling winnings and $8,000 gambling losses c. $3,200 of qualified medical expenses d. $25,000 gift from Ben's great uncle e. $0 payment/refund of state income taxes. In 2018 their withholding was exactly equal to their state income tax liability (which was amazing)! 9) The Knope-Wyatt family lives at 555 Perkins Drive, Champaign, IL 61822. Their family SSNs are as follows: Ben Leslie Ron April 123-45-6789 234-56-7890 345-67-8901 456-78-9012 10) Additional information: a. If Leslie and Ben overpaid their 2019 taxes, they would like the entire overpayment to be refunded to them. b. Leslie and Ben are not subject to AMT c. They do not wish to contribute to the Presidential Election Campaign fund. d. They do not have foreign bank accounts or other foreign investments. e. Leslie and Ben are not subject to an underpayment penalty. Information Provided by Leslie and Ben Assume that all information pertains to tax year 2019 unless otherwise indicated. 1) Leslie (age 36) and Ben (35) are happily married. They have an 8-year-old son, Ron, who lives with them. They also have an 18-year old daughter, April. April also lives at home, and is a full-time student at the University of Illinois. April earned $9,000 in 2019 from a part-time job. This is less than half the cost of supporting April. 2) Leslie is an engineer who earned $160,000 in 2019. According to her W-2 forms, Leslie's employer withheld a total of $34,000 in federal income taxes and $10,000 in Illinois income taxes from her paychecks during the tax year. 3) Ben is a landscape designer. His business is taxed as a sole proprietorship and uses the cash method of accounting. During 2019, Ben collected $165,000 in sales revenue. Additionally, in 2019 he completed the landscaping for three clients that have not yet paid their invoices which total $24,000. Ben does not have any employees and made no payments requiring issuance of a Form 1099. Ben's expenses include advertising costs of $4,000, legal and consulting fees of $5,500, business insurance of $10,000, landscape materials and supplies of $42,000 and office supplies $1,000. Ben's business does not involve inventory. Ben has converted the garage of their family home into a dedicated space for his business. He stores all equipment, materials and supplies in the garage. The garage also has an office area where he maintains the business's customer files and accounting documents. The converted garage is used 100% for his business and represents 420 square feet of his 3,800 square foot home. Ben also has a truck that he uses 90% for business (10% personal). He purchased the truck in 2017 and has always used the standard mileage method to determine business expenses. In 2019, he drove the truck 22,500 total miles. He has supporting documentation for his business miles. Ben paid $3,000 each quarter in estimated payments for federal income tax. He did not make quarterly payments for Illinois state taxes. 4) Leslie and Ben received $200 of interest income from bonds issued by the City of Chicago. They also received $500 of qualified dividend income (Form 1099-DIV) from NBC Corp. 5) Ben and Leslie paid $13,530 in principal payments and $9,432 in interest payments on their home mortgage for their primary residence (Form 1098). They also paid local real property taxes of $4,450 on their home. 6) The also Knope-Wyatts paid $15,000 in tuition and fees for their daughter to attend UIUC. 7) The Knope-Wyatts made the following charitable contributions: $3,500 to the United Way; $3,000 to the American Cancer Society; $1,000 to the University of Illinois Alumni Association; and $450 contribution of household goods to Goodwill. Other than the Goodwill donation, all gifts were made by check. Appropriate documentation has been maintained for all charitable contributions. 8) Leslie and Ben provided documentation for additional income/expenses during tax year 2019: a. $200 state personal property taxes on Leslie's car b. $3,400 gambling winnings and $8,000 gambling losses c. $3,200 of qualified medical expenses d. $25,000 gift from Ben's great uncle e. $0 payment/refund of state income taxes. In 2018 their withholding was exactly equal to their state income tax liability (which was amazing)! 9) The Knope-Wyatt family lives at 555 Perkins Drive, Champaign, IL 61822. Their family SSNs are as follows: Ben Leslie Ron April 123-45-6789 234-56-7890 345-67-8901 456-78-9012 10) Additional information: a. If Leslie and Ben overpaid their 2019 taxes, they would like the entire overpayment to be refunded to them. b. Leslie and Ben are not subject to AMT c. They do not wish to contribute to the Presidential Election Campaign fund. d. They do not have foreign bank accounts or other foreign investments. e. Leslie and Ben are not subject to an underpayment penalty