Comprehensive Problem 4-1

Skylar and Walter Black have been married for 5 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002.

The Blacks incurred the following expenses during their move from Maine to Nevada in January of 2017:

Cost of moving furniture	$4,775
Travel (2,988 miles at $0.17)	508
Lodging en route	520
Meals en route	90
House-hunting trip before the move	750

The school district reimbursed Walter $550 for moving expenses. These are reflected on his W-2. Walters previous job, as a high school teacher in Maine, was only 5 miles from his home. Skylar was unemployed prior to the move.

The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 183 days during 2017 and used by the Blacks for 17 days. Pertinent information about the condo rental is as follows:

Rental income	$16,000
Mortgage interest reported on Form 1098	8,600
Homeowners' association dues	5,200
Utilities	1,200
Maintenance	3,800
Depreciation (assume fully depreciated)	0

The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.

Required: Complete Form 1040 and the schedules and forms provided for the Blacks.

If an amount box does not require an entry or the answer is zero, enter "0".

Do not round any percentages.

If required, round your answers to the nearest dollar.

If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers.

Note: Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.

Walter's earnings from teaching are:

a Employee's social security number 700-01-0002

OMB No. 1545-0008

Safe, accurate, FAST! Use

IRS e ~ file

Visit the IRS website at www.irs.gov/efile

b

Employer identification number (EIN) 31-1238967

1

Wages, tips, other compensation 50,674.00

2

Federal income tax withheld 4,700.00

c

Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169

3

Social security wages 50,674.00

4

Social security tax withheld 3,141.79

5

Medicare wages and tips 50,674.00

6

Medicare tax withheld 734.77

7

Social security tips

8

Allocated tips

d

Control number

9

Verification code

10

Dependent care benefits

e

Employee's first name and initial Last name Walter Black 883 Scrub Brush Street, Apt# 52B Las Vegas, NV 89125

Suff.

11

Nonqualified plans

12a

See instructions for box 12

C o d e

P

550.00

13

Statutory employee	Retirement plan	Third-party sick pay

12b

C o d e

DD

7,800.00

14

Other

12c

C o d e

12d

C o d e

f

Employee's address and ZIP code

15State NV		Employer's state ID number	16	State wages, tips, etc.	17	State income tax	18	Local wages, tips, etc.	19	Local income tax	20	Locality name

Form W-2

Wage and Tax Statement

2017

Department of the TreasuryInternal Revenue Service

Copy BTo Be Filed With Employee's FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Complete Form 1040 for Walter and Skylar Black.

Form 1040

Department of the TreasuryInternal Revenue Service (99) U.S. Individual Income Tax Return

2017

OMB No. 1545-0074

IRS Use Only

For the year Jan. 1Dec. 31, 2017, or other tax year beginning

, 2017, ending

, 20

See separate instructions.

Your first name and initial Walter

Last name Black

Your social security number 700-01-0002

If a joint return, spouse's first name and initial Skylar

Last name Black

Spouse's social security number 222-43-7690

Home address (number and street). If you have a P.O. box, see instructions. 883 Scrub Brush Street

Apt. no. 52 B

Make sure the SSN(s) above and on line 6c are correct.

City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Las Vegas, NV 89125

Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund.

You Spouse

Foreign country name

Foreign province/state/country

Foreign postal code

Filing Status

Exemptions	6a		Yourself. If someone can claim you as a dependent, do notcheck box 6a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				}	Boxes checked on 6a and 6b
	b		Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .					No. of children on 6c who: lived with you
	c	Dependents:		(2)Dependent's social security number	(3)Dependent's relationship to you	(4) If child under age 17 qualifying for child tax credit (see instructions)
	(1) First name		Last name					did not live with you due to divorce or separation (see instructions)
If more than four dependents, see instructions and check here
								Dependents on 6c not entered above
								Add numbers on lines above
	d	Total number of exemptions claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. If you did not get a W-2, see instructions.	7	Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							7
	8a	Taxable interest. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							8a
	b	Tax-exempt interest. Do not include on line 8a . . . . . . . . .				8b
	9a	Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							9a
	b	Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				9b
	10	Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . .							10
	11	Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							11
	12	Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . . . . .							12
	13	Capital gain or (loss). Attach Schedule D if required. If not required, check here							13
	14	Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							14
	15a	IRA distributions . . . . . . . . . . .	15a			b Taxable amount . .			15b
	16a	Pensions and annuities . . . . . .	16a			b Taxable amount . .			16b
	17	Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E							17
	18	Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							18
	19	Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							19
	20a	Social security benefits	20a			b Taxable amount . .			20b
	21	Other income. List type and amount _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _							21
	22	Combine the amounts in the far right column for lines 7 through 21. This is your total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							22
Adjusted Gross Income	23	Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				23
	24	Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ				24
	25	Health savings account deduction. Attach Form 8889 . . . . .				25
	26	Moving expenses. Attach Form 3903 . . . . . . . . . . . . . . . . . .				26
	27	Deductible part of self-employment tax. Attach Schedule SE				27
	28	Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . .				28
	29	Self-employed health insurance deduction . . . . . . . . . . . . .				29
	30	Penalty on early withdrawal of savings . . . . . . . . . . . .				30
	31a	Alimony paid b Recipient's SSN ________				31a
	32	IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				32
	33	Student loan interest deduction . . . . . . . . . . . . . . . . . . . . .				33
	34	Reserved for future use . . . . . . . . . . . . . . . . .				34
	35	Domestic production activities deduction. Attach Form 8903				35
	36	Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							36
	37	Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . .							37

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11320B

Form 1040 (2017)

Form 1040 (2017)

Walter and Skylar Black

700-01-0002

Page 2

38

Amount from line 37 (adjusted gross income)

38

Tax and Credits

39a

Check if:

{

You were born before January 2, 1953, Blind. Spouse was born before January 2, 1953, Blind.

}

Total boxes checked 39a

b

If your spouse itemizes on a separate return or you were a dual-status alien, check here 39b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Standard Deduction for

People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions.

All others:

Single or Married filing separately, $6,350

Married filing jointly or Qualifying widow(er), $12,700

Head of household, $9,350

40

Itemized deductions (from Schedule A) or your standard deduction (see left margin)

40

41

Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41

42

Exemptions. If line 38 is $156,900 or less, multiply $4,050 by the number on line 6d. Otherwise, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42

43

Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0-.

43

44

Tax (see instructions). Check if any from: a Form(s) 8814 b Form 4972 c _____

44

45

Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . . . . . . .

45

46

Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . . . . . . . .

46

47

Add lines 44, 45, and 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47

48

Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . .

48

49

Credit for child and dependent care expenses. Attach Form 2441

49

50

Education credits from Form 8863, line 19 . . . . . . . . . . . . . . .

50

51

Retirement savings contributions credit. Attach Form 8880 . . .

51

52

Child tax credit. Attach Schedule 8812, if required . . . . . . . .

52

53

Residential energy credit. Attach Form 5695 . . . . . . . . . . .

53

54

Other credits from Form: a 3800 b 8801 c ________

54

55

Add lines 48 through 54. These are your total credits . . . . . . . . . . . . . . . . . . . . . .

55

56

Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- . . . . . . . .

56

Other Taxes

57

Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57

58

Unreported social security and Medicare tax from Form: a 4137 b 8919 . . . . . .

58

59

Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required

59

60a

Household employment taxes from Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . .

60a

b

First-time homebuyer credit repayment. Attach Form 5405 if required . . . . . . . . .

60b

61

Health care: individual responsibility (see instructions)

Full-year coverage

61

62

Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) _ _ _ _ _ _

62

63

Add lines 56 through 62. This is your total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

63

Payments	64	Federal income tax withheld from Forms W-2 and 1099 . . . . . .				64
If you have a qualifying child, attach Schedule EIC.	65	2017 estimated tax payments and amount applied from 2016 return				65
	66a	Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . . . .				66a
	b	Nontaxable combat pay election . . . . . .	66b
	67	Additional child tax credit. Attach Schedule 8812 . . . . . . . . . . .				67
	68	American opportunity credit from Form 8863, line 8 . . . . . . . .				68
	69	Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . . .				69
	70	Amount paid with request for extension to file . . . . . . . . . . .				70
	71	Excess social security and tier 1 RRTA tax withheld . . . . . . . . .				71
	72	Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . .				72
	73	Credits from Form: a 2439 b Reserved c 8885 d				73
	74	Add lines 64, 65, 66a, and 67 through 73. These are your total payments . . . . . . . . .							74

Refund

75

If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid

75

76a

Amount of line 75 you want refunded to you. If Form 8888 is attached, check here

76a

Direct deposit? See instructions.

b

Routing number

c Type: Checking Savings

d

Account number

77

Amount of line 75 you want applied to your 2018 estimated tax

77

Amount You Owe

78

Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

78

79

Estimated tax penalty (see instructions) . . . . . . . . . . . . . . . . . . . .

79

Third Party Designee

Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete below. No

Designee's name

Phone no.

Personal identification number (PIN)

Sign Here Joint return? See instructions. Keep a copy for your records.

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature

Date

Your occupation Teacher

Daytime phone number

Spouse's signature. If a joint return, bothmust sign.

Date

Spouse's occupation Homemaker

If the IRS sent you an Identity Protection PIN, enter it here (see inst.)

Paid Preparer Use Only		Print/Type preparer's name	Preparer's signature	Date	Check if self-employed	PTIN
		Firm's name			Firm's EIN
		Firm's address			Phone no.
Go to www.irs.gov/Form1040 for instructions and the latest information.				Form 1040 (2017)