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$21,500Federal income tax withheld215State income tax withheld100

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.

Form

1040

Department of the TreasuryInternal Revenue Service(99)

U.S. Individual Income Tax Return2018OMB No. 1545-0074IRS Use OnlyFiling status:Head of household (with qualifying person)

Your first name and initial

SteveLast name

JacksonYour social security number

465-88-9415Your standard deduction:None

If joint return, spouse's first name and initial

Last name

Spouse's social security number

Spouse standard deduction: Spouse standard deduction: Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 Spouse is blind Spouse itemizes on a separate return or you were dual-status alienYes

Full-year health care coverage or exempt (see inst.)Home address (number and street). If you have a P.O. box, see instructions.

3215 Pacific DriveApt. no.

BPresidential Election Campaign

(see inst.)None

City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6.

Pacific Beach, CA 92109If more than four dependents, see inst. and here Dependents(see instructions):(2)Social security number(3)Relationship to you(4) if qualifies for (see inst.):(1)First nameLast nameChild tax creditCredit for other dependentsJanetJackson654-12-6543DaughterYes

No

MichaelJackson667-21-8998BrotherNo

Yes

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 complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.Your signature

Date

Your occupation

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

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

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

Paid Preparer Use OnlyPreparer's namePreparer's signaturePTINFirm's EINCheck if:3rd Party DesigneeSelf-employedFirm's name Phone no.Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.Cat. No. 11320BForm1040(2018)

Form 1040 (2018)Steve Jackson465-88-9415Page2

Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld.1Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . .12aTax-exempt interest2abTaxable interest2b3aQualified dividends3abOrdinary dividends3b4aIRAs, pensions, and annuities4abTaxable amount4b5aSocial security benefits5abTaxable amount5b6Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6 . . . . . . . . . . . .7Standard Deduction for-

Single or married filing separately, $12,000

Married filing jointly or Qualifying widow(er), $24,000

Head of household, $18,000

If you checked any box under Standard deduction, see instructions.8Standard deduction or itemized deductions(from Schedule A) . . . . .. . .89Qualified business income deduction (see instructions) . . . . . . . . . . . . . . . . . .910Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- . . . .1011aTax (see inst)(check if any from:1 Form(s) 88142 Form 49723)

b Addany amount from Schedule 2 and check here . . . . . . . . . . . . . . . . . 11