During 2018, Jason and Vicki Hurting, who are married with two children and filing jointly, had the following tax information Jason owns a cash basis landscaping business, and Vicki works as a sales executive for a manufacturing business Jason (SSN 412 34 5670) and Vicki (SSN 412 34 5671) reside at 123 Bate Street, Bright, AL 36116 Both children are under the age of 17 Jason Jr (412 34 5672) date of birth 7 20 09 Catlin (412 34 5673) date of birth 1 08 13 Vickis W 2 information is as follows Wages $ 94,000 Federal withholding 22,000 Social security wages 94,000 Social security withholding 5,828 Medicare withholding 1,363 State withholding 4,700 Other income 1099 G Alabama state tax refund is taxable because $4,700 was deducted on last years return $ 423 1099 INT First Bank of Alabama 225 1099 DIV IBM, Inc Ordinary dividends 125 Qualified dividends 125 The following information is for Jasons landscaping business (business code 811490) Revenue $ 153,000 Wages 41,600 Payroll tax 3,182 Cell phone charge 425 Assets ( 179 elected) Item Date Purchased Business Use Amount Percentage Truck (100 business) 2 05 18 $ 28,000 100 Mower 1 3 08 18 12,000 100 Mower 2 3 08 18 3,400 100 Equipment 6 25 18 1,595 100 The truck was over 6,000 lbs The Hurtings had the following itemized deductions State income tax withholding (from above) $ 4,700 Real estate tax 2,100 Personal property tax 425 Mortgage interest 8,300 Charitable contributions 2,400 The Hurtings made four federal estimated payments of $2,500 each on their due dates Prepare Form 1040 plus appropriate schedules for the Hurtings for 2018 The Hurtings had qualifying health care coverage at all times during the tax year Use the appropriate Tax Rate Schedules (List the names of the taxpayers in the order in which they appear in the problem Enter the required information in the Dependents section in a chronological order of Dependent's social security number 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 10, 2024

During 2018, Jason and Vicki Hurting, who are married with two children and filing jointly, had the following tax information. Jason owns a cash-basis landscaping

During 2018, Jason and Vicki Hurting, who are married with two children and filing jointly, had the following tax information. Jason owns a cash-basis landscaping business, and Vicki works as a sales executive for a manufacturing business. Jason (SSN 412-34-5670) and Vicki (SSN 412-34-5671) reside at 123 Bate Street, Bright, AL 36116. Both children are under the age of 17: Jason Jr. (412-34-5672) date of birth 7/20/09 Catlin (412-34-5673) date of birth 1/08/13 Vickis W-2 information is as follows:


Wages	$	94,000
Federal withholding		22,000
Social security wages		94,000
Social security withholding		5,828
Medicare withholding		1,363
State withholding		4,700

Other income:
1099-G Alabama state tax refund is taxable because $4,700 was deducted on last years return	$	423
1099-INT First Bank of Alabama		225
1099-DIV IBM, Inc.Ordinary dividends		125
Qualified dividends		125

The following information is for Jasons landscaping business (business code 811490):


Revenue	$	153,000
Wages		41,600
Payroll tax		3,182
Cell phone charge		425
Assets ( 179 elected)

Item	Date Purchased	Business Use Amount		Percentage
Truck (100% business)	2/05/18	$	28,000	100	%
Mower 1	3/08/18		12,000	100
Mower 2	3/08/18		3,400	100
Equipment	6/25/18		1,595	100

The truck was over 6,000 lbs. The Hurtings had the following itemized deductions:


State income tax withholding (from above)	$	4,700
Real estate tax		2,100
Personal property tax		425
Mortgage interest		8,300
Charitable contributions		2,400

The Hurtings made four federal estimated payments of $2,500 each on their due dates. Prepare Form 1040 plus appropriate schedules for the Hurtings for 2018. The Hurtings had qualifying health care coverage at all times during the tax year. Use the appropriate Tax Rate Schedules. (List the names of the taxpayers in the order in which they appear in the problem. Enter the required information in the Dependents section in a chronological order of "Dependent's social security number". 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.)