During 2018, Cassandra Albright, who is single, worked part-time at a doctor’s office and received a W-2. She also had a cash-basis consulting practice that had the following income and expenses:

Revenue	$	48,000
Laptop computer purchased 4/23/18 (§ 179 elected)		2,300
Travel 2,500 miles for business, 13,000 personal
Supplies		500
Cell phone charge		540

Cassandra (SSN 412-34-5670) resides at 1400 Medical Street, Apt. 3A, Lowland, CA 92273. Professional code 622000. Her W-2 shows the following:

Wages	$	45,300
Federal withholding		4,983
Social security wages		45,300
Social security withholding		2,809
Medicare withholding		657
State withholding		2,265
Other income:
1099-INT Old Bank		2,300
1099-DIV Bake Co., Inc.—Ordinary dividends		3,100
Qualified dividends		3,100

Cassandra had the following itemized deductions:

State income tax withholding	$	2,265
State income tax paid with the 2017 return		350
Real estate tax		3,450
Mortgage interest		12,300

Cassandra made two federal estimated payments of $6,500 each on April 15 and June 15. She had qualifying health care coverage at all times during the tax year.

Prepare Form 1040 for Cassandra for 2018, including Schedule A, Schedule B, Schedule C, Schedule SE and Form 4562. Use the appropriate Tax Tables.

(Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole dollar and percentage values to two decimal places.)

 
 
 
 

Form 1040 (2018) Standard deduction for- Single or Married filing separately, $12,000 Married filing jointly or Qualifying widow(er). $24,000 Head of household, $18,000 deduction, see instructions. Refund . If you checked any box 15 Total tax. Add lines 13 and 14 under Standard Direct deposit? See instructions. Amount You Owe Cassandra Albright 1 Wages, salaries, tips, etc. Attach Form W-2 2a Tax-exempt interest 3a Qualified dividends UYA 2a 3a 4a 5a 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- 11 a Tax (see inst) (check if any form: 3. b Add any amount from Schedule 2 and check here 12 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter -0- 14 Other taxes. Attach Schedule 4 4a IRAS, pensions, and annuities 5a Social security benefits 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6 0 1. Form(s) 8814 16 Federal income tax withheld from Forms W-2 and 1099 17 Refundable credits: a EIC (see inst.) c Form 8863 18 Add lines 16 and 17. These are your total payments. 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here b Routing number c Type: Checking d Add any amount from Schedule 5 d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 23 Estimated tax penalty (see instructions) b Taxable interest 3,100 b Ordinary dividends b Sch 8812 412-34-5670 21 23 b Taxable amount b Taxable amount 2. Form 4972 Savings 1 2b 3b 4b 5b 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20a 22 Page 2 45,300 2,300 3,100 43.322 43.322 0 0 43,322 Form 1040 (2018) Schedule 1 of Form 1040. SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 Albright Cassandra Additional Income Adjustments to Income Additional Income and Adjustments to Income Attach to Form 1040. Go to www.irs.gov/Form1040 for instructions and the latest information. 1-9 b Reserved 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ 15a Reserved 16a Reserved 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here 14 Other gains or (losses). Attach Form 4797 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or (loss). Attach Schedule F 19 Unemployment compensation 20a Reserved 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don t have any adjustments to income, enter here and on Form 1040, line 6. Otherwise, go to line 23 23 Educator expenses 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 Health savings account deduction. Attach Form 8889 26 Moving expenses for members of the armed forces. Attach Form 3903 27 Deductible part of self-employment tax. Attach Schedule SE 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction 30 Penalty on early withdrawal of savings 31a Alimony paid 32 IRA deduction 33 Student loan interest deduction b Recipient s SSN 34 Reserved 35 Reserved 36 Add lines 23 through 35 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F 23 24 25 26 27 28 29 30 31a 32 33 34 35 OMB No. 1545-0074 2018 Attachment Sequence No. 01 Your social security number 412-34-5670 1-9b 10 11 12 13 14 15b 16b 17 18 19 20b 21 22 43,322 36 0 Schedule 1 (Form 1040) 2018 Schedule 4 of Form 1040. SCHEDULE 4 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 Cassandra Other Taxes Albright Other Taxes Attach to Form 1040. Go to www.irs.gov/Form1040 for instructions and the latest information. 57 Self-employment tax. Attach Schedule SE 58 Unreported social security and Medicare tax from: Form a 4137 b 8919 59 Additional tax on IRAS, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required 60a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 61 Health care: individual responsibility (see instructions) 62 Tax from: a Form 8959 For Paperwork Reduction Act Notice, see your tax return instructions. b Form 8960 c Instructions; enter code(s) 63 Section 965 net tax liability installment from Form 965-A 63 64 Add the amounts in the far right column. These are your total other taxes. Enter here and on Form 1040, line 14 OMB No. 1545-0074 2018 Attachment Sequence No. 04 Your social security number 412-34-5670 57 58 59 60a 60b 61 62 64 Schedule 4 (Form 1040) 2018 Schedule 5 of Form 1040. SCHEDULE 5 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040. Cassandra Albright 65 Other Payments 66 and Refundable 67a Credits Other Payments and Refundable Credits Attach to Form 1040. Go to www.irs.gov/Form 1040 for instructions and the latest information. Reserved 2018 estimated tax payments and amount applied from 2017 return Reserved b Reserved 68-69 Reserved 70 71 72 73 74 75 Net premium tax credit. Attach Form 8962 Amount paid with request for extension to file (see instructions) Excess social security and tier 1 RRTA tax withheld Credit for federal tax on fuels. Attach Form 4136 Credits from Form: a 24391 b Reserved c 8885 Add the amounts in the far right column. These are your total other payments and refundable credits. Enter here and include on Form 1040, line 17 For Paperwork Reduction Act Notice, see your tax instructions. Cat. NO. 714820 d OMB No. 1545-0074 2018 Attachment Sequence No. 05 Your social security number 412-34-5670 65 66 67a 67b 68-69 70 71 72 73 74 75 Schedule 5 (Form 1040) 2018