Comprehensive Problem 7-2A

Steve Jackson (birthdate December 13, 1965) is a single taxpayer living at 3215 Pacific Dr., Apt. B, Pacific Beach, CA 92109. His Social Security number is 465-88-9415. In 2018, Steve's earnings and income tax withholding as laundry attendant of a local hotel are:

Earnings from the Ocean View Hotel	$21,500
Federal income tax withheld	215
State income tax withheld	100

Steve has a daughter, Janet, from a previous marriage. Janet is 11 years old (Social Security number 654-12-6543). Steve provides all Janet's support. Also living with Steve is his younger brother, Michael (Social Security number 667-21-8998). Michael, age 47, is unable to care for himself due to a disability. On a reasonably regular basis, Steve has a care giver come to the house to help with Michael. He uses a company called HomeAid, 456 La Jolla Dr., San Diego, CA 92182 (EIN 17-9876543). Steve made payments of $990 to HomeAid in 2018. Janet receives free after-school care provided by the local school district.

Required: Complete Steve's federal tax return for 2018. Use Form 1040, Schedule 3, Form 2441, Child Tax Credit Worksheet, Form 8812, EITC Worksheet A, and Schedule EIC.

• Make realistic assumptions about any missing data.
• Steve had health care coverage for the entire year. He does not want to make a contribution to the presidential election campaign.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required round any dollar amount to the nearest dollar.

Form 1040

Complete Jackson's Form 1040.