Document1 Word ces Mailings Review View Help O Search Prepare the Federal Form 1040 and all supporting schedule and all applicable schedules using the 2019 forms and tax rate schedules. Apply the TCJA 2017. It is impotent that you read the forms and instructions. Jerry, 42, and Elaine, 50, are married and file a joint return. They have 1 child, George, who is 15 years. They live in New York City. They had the following financial information: Jerry earned wages of $65,000. Jerry's Federal withholding tax was $10,500 Jerry's state and city withholding tax was $4,000 and $1,500, respectively. Elaine has her own law firm. It had the following income and expenses for the year. Legal Fees Earned 433,000 Wages paid to employees 196,000 Rent 52,000 Insurance 3,500 Utilities 4,300 Political Contributions 2,000 Supplies and Stationary 1,250 You will need to complete the Self Employment tax on Form SE. Also, remember that the taxpayer may be entitled to deduction for Qualified Business Income. Include the 1099 INT and 1099 DIV 1) They earned $1,500 of municipal bond interest. 2) Their son, George required surgery to repair his knee, which cost $5,000. In addition, they paid $2,450 in other medical expenses. 3) Jerry sold 100 shares of Disney for $116, on May 1st. He purchased the share for $93 a share on October 12, 2015. 4) Jerry sold 100 shares of Coke for $87, on Dec 31st. He purchased share earlier in the year on Sept. 19 for $120. 5) Jerry inherited a ranch in Montana from his uncle. The house was valued at $280,000 at the date of death. His uncle orginally paid $25,000 for the house in 1937. 6) Jerry and Elaine own a home that is their personal residence. They paid real estate taxes of $7,600 for year. 7) They made monthly principal and interest payments on their mortgage. The total interest paid during the year was $7,320. 8) Elaine made payments of $2,200 and $5,500 to make The Make A Wish Foundation and American Cancer Society, respectively. Document1 - Word Mailings Review View Help O Search 9) Elain provide free legal service to her church. She would have normally billed $8,500 for these services. 10) Jerry made a contribution of $2,200 to an Indiviudal Retirement Account. 11) Elaine made estimated Federal tax payments that totaled $52,000 during the year 12) Elaine made estimated State and City taxes payments that totaled $18,000. Other Note: The Make a Wish Foundation, Elaine's churh and the American Cancer Society are qualified charitable organizations. Acquisition indebtedness on the primary residence is $575,000. They did not have any foreign bank accounts and did not have any signing authority over any foreign accounts 19 . xyz Core 1300 11 Jery - Elave key . . li Meli H Millinlim. httle | CHO MINH BALINIMAI MWINWIN WHILI HTML 2019 Interest Income MITH ARC BANK 100NT www C PART WIMM IN THE INICAN www. Jerry + Elginc key WWW AM LAIN LAWI NAM INDIMIWNE MINNIR INT DANIE NNNNN WWWWWW WINNI RAWL 100T WWII EMI 165,000 315.000 315,000 400,000 600,000 28.179.00 +24% 64,179.00 + 32% 91,379.00 - 35% 161,379.00 + 37% 165,000 315.000 400,000 600.000 157,500 200.000 300,000 200,000 300.000 32,089.50 + 32% 45,689,50 + 35% 80,689,50 +37% 157,500 200.000 300,000 400,000 600,000 of the amount over- $ 0 13,850 52,850 84,200 160,700 204,100 510,300 2019 Tax Rate Schedules Head of household Schedule z Single-Schedule X (taxable of the If taxable But not income is: amount But not Income is Over- The tax is: Over- The tax is: over- Over- over 0 $ 9,700 $ 0 $ .....10% -10% 0 $ $ 13,850 9,700 39,475 $ 970.00 4 12% 9,700 13,850 52,850 $ 1,385.00 + 12% 39,475 84,200 4,543.00 + 22% 39,475 52,850 84,200 6,065.00 - 22% 84,200 160,725 14,382.50 + 24% 84,200 84,200 160,700 12.962.00 +24% 160,725 204,100 32,748.50 + 32% 160,725 160,700 204,100 31,322.00 + 32% 204,100 510,300 46,628.50 + 35% 204,100 204,100 510,300 45.210.00 - 35% 510,300 153,798.50 + 37% 510,300 510,300 152,380.00 + 37% Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount Income is: But not Ove- over- The tax is: over- Over- The tax is $ O $ 19,400 $ 0 S 0 $ 9,700 10% 19,400 78,950 $ 1,940.00 + 12% 19,400 9,700 39,475 $ 970.00 + 12% 78,950 168.400 9,086.00 + 22% 78,950 39 475 84,200 4,543.00 + 22% 168,400 28,765.00 + 24% 168,400 84,200 160,725 14,382.50 + 24% 321,450 408,200 65,497.00 + 32% 321,450 160,728 204.100 32.748.50 + 329 408,200 612,350 93,257,00 + 35% 408,200 204,100 306,175 46,628.50 + 35% 612,350 164,709.50 +37% 612,350 306,175 82,354.75 + 37% ......... 10% of the amount over $ 0 9,700 39,475 84,200 321A50 160,725 204.100 306,175 F w