Complete only the requested forms/shedules: Form 1040 and Schedule 1. If a line of a form or schedule requests a different form/schedule that is not explicitly required for this OP (Overview Problem), you do NOT need to complete it.

Prepare Schedule 1, Form 1040

Complete Part I, Lines 1 10.

You may disregard Part II, Lines 11 26 for this assignment.

Some lines will not need to be populated if the taxpayers did not have any activity related to the line. For example, the Kings did not receive any alimony payments, so Line 2a should be left blank.

The amount from Line 10, Schedule 1 needs to be entered on Line 8, Form 1040. This is why you were directed to complete Schedule 1 first.

Prepare Form 1040

Check the appropriate filing status and populate the taxpayers names, the Standard Deduction section, and Dependents section. You do not need to complete any other general information.

Complete Lines 1 37.

Some lines will not need to be populated if the taxpayers did not have any activity related to the line. For example, the Kings did not have any dividends, so Lines 3a and 3b should be left blank.

Any amounts reported on the far right hand column are taxable.

Input the total amount from Line 10, Schedule 1 on Line 8, Form 1040.

You do not need to complete any other forms, even if they are referenced on a line that you completed.

The ending result will be a Refund OR Amount You Owe, not both.

Taxpayer Information

The following information pertains to Kyle (age 68) and Kim (age 50) King, who are married and have 12-year-old twin daughters, Kara and Katie. The Kings have asked you to prepare their Form 1040 and Schedule 1.

Income
Kim's salary	280,000
Interest income on:
Corporate bond	12,000
Municipal bond	4,500
Lottery winnings, net of price of ticket	5,000
Inheritance received due to death of Kim's mother	50,000
Life insurance proceeds received due to death of Kim's mother	150,000
Compensatory lawsuit proceeds related to Kyles physical injury	10,000
Punitive lawsuit proceeds related to Kyles physical injury	20,000
Gain on sale of primary residence (purchased in 2015 and both have lived there since	260,000
Kyles annuity receipts (He invested $134,400 in the annuity in a prior year and received $1,000 per month related to the annuity this year.)	12,000
Other Information
Expenditures that qualified as itemized deductions	22,000
Child tax credit	4,000
Federal income taxes withheld from Kims paycheck.	58,000