Question
During 2019, Jason and Vicki Hurting, who are married with two children, had the following tax information. Jason owns a landscaping business, and Vicki works
During 2019, Jason and Vicki Hurting, who are married with two children, had the following tax information. Jason owns a 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 7/20/11 Catlin (412-34-5673), date of birth 1/08/15 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: 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) 2/05/2019 $28,000 100% Mower 1 3/08/2019 12,000 100 Mower 2 3/08/2019 3,400 100 Equipment 6/25/2019 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 2019. The Hurtings had qualifying health care coverage at all times during the tax year. We have provided selected filled-in source documents that are available in the Connect Library.
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