For this assessment, use information and publications from IRS gov and the other IRS resources linked in the Resources under the Required Resources heading to determine the adjusted gross income (AGI) for Jacob and Taylor Weaver, based on the provided scenario The primary purpose of the Internal Revenue Service is to raise revenue for the government However, the U S Congress has chosen to exempt certain income from taxation, such as scholarships, gifts, life insurance proceeds, municipal bond interest, and employee fringe benefits Scenario Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2018 They have three children, Ashley, age 9 Patrick, age 6 and John, age 17 Social Security numbers are Jacob, 222 33 4444 Taylor, 555 66 7777 Ashley, 888 99 1234 Patrick, 789 56 4321 John, 123 45 6789 Taylor works part time as a paralegal She earned $31,000 in 2018 Income Taxes $4,200 withheld Interest received from Local Bank $6,575 Estimated tax payments $25,000 $350 paid with their 2017 state tax return Jacob and Taylor bought their first house in 2018 Home mortgage interest $12,246 Property tax $12,230 Federal income withholding $2,350 Charities $4,500 $435 to rent a moving truck $8,000 to put new siding on the house $11,600 for child care expenses ($5,800 for each child) It was paid to Lil Tigers Daycare, 1115 S Garrison St , Muncie, IN 47305 (EIN 98 7654321) Taylor is a part time student at Ball State University in Muncie She received a 1098 T indicating tuition and fees for 2018 in the amount of $6,011 Health insurance for the family, through Taylor's job, cost $7,500 for all 12 months of 2018 They paid deductibles and co payments of $2,550 Instructions Complete the following Read the information in the scenario below Download the appropriate forms and publications from IRS gov Enter information from Assessment 2, Schedules C and SE, into the 1040 form Apply the rules for adjustments to adjusted gross income Enter applicable information from the scenario into the 1040 form Interpret official rules and instructions to record correct entries on the tax form Calculate the AGI for the Weavers Submit the tax form

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 15, 2024

For this assessment, use information and publications from IRS.gov and the other IRS resources linked in the Resources under the Required Resources heading to determine

For this assessment, use information and publications from IRS.gov and the other IRS resources linked in the Resources under the Required Resources heading to determine the adjusted gross income (AGI) for Jacob and Taylor Weaver, based on the provided scenario.

The primary purpose of the Internal Revenue Service is to raise revenue for the government. However, the U.S. Congress has chosen to exempt certain income from taxation, such as scholarships, gifts, life insurance proceeds, municipal bond interest, and employee fringe benefits.

Scenario

Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2018.

They have three children, Ashley, age 9; Patrick, age 6; and John, age 17.
- Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-99-1234; Patrick, 789-56-4321; John, 123-45-6789.
Taylor works part-time as a paralegal.
- She earned $31,000 in 2018.
Income Taxes: $4,200 withheld.
Interest received from Local Bank: $6,575.
Estimated tax payments: $25,000.
- $350 paid with their 2017 state tax return.
Jacob and Taylor bought their first house in 2018.
- Home mortgage interest: $12,246.
- Property tax: $12,230.
Federal income withholding: $2,350.
Charities: $4,500.
$435 to rent a moving truck.
$8,000 to put new siding on the house.
$11,600 for child care expenses ($5,800 for each child).
- It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98-7654321).
Taylor is a part-time student at Ball State University in Muncie.
- She received a 1098-T indicating tuition and fees for 2018 in the amount of $6,011.
Health insurance for the family, through Taylor's job, cost $7,500 for all 12 months of 2018.
- They paid deductibles and co-payments of $2,550.

Instructions

Complete the following:

Read the information in the scenario below.
Download the appropriate forms and publications from IRS.gov.
Enter information from Assessment 2, Schedules C and SE, into the 1040 form.
Apply the rules for adjustments to adjusted gross income.
- Enter applicable information from the scenario into the 1040 form.
- Interpret official rules and instructions to record correct entries on the tax form.
Calculate the AGI for the Weavers.
Submit the tax form.