For this assignment, we have to make a 2018 individual income tax return for a client who was referred to us by another client.There is information below that we need to use for this assignment as well as other files to include as well (we will just pretend they are for the year 2018).

Here is the information:

We have a new client names Walter Heisenberg. He is a chemist working at a place called Sandia Labs in Rio Rancho, NM. Then we were told all of his other information to complete the assignment.

Walter our client is age 55 is happily married to Skyler Heisenberg who is age 47. They also have two kids: Walter Jr. (21) and Todd (16)

Our client's social is on the W2 he gave us, his wife's social is 555-88-1234, Walter Jr's is 555-99-3241, and Todd's is 555-00-0012.

Walter Jr. doesn't work and is going to school full time at UNM while living on campus (away from home).

Todd does a paper route and makes $5,000 a year while living at home.

The client and his wife also pay all long-term care expenses for Skyler's mother, Doris, and Skyler's cousin, Robert.They pay 100% of each individual's total cost of living.

Walter has paid child support ($12,000) and alimony ($15,000) to his ex-wife Marie (social: 455-85-6527) in 2018.

He got a state tax refund of $600 in 2018 from his 2017 state income tax return.Which he claimed $25,000 in itemized deductions in 2017 of which $4,500 was state income taxes.

His wife Skyler runs a bookkeeping business from home.She has provided a hand-written sheet of expenses for the business.She uses the cash method to record income and expenses.She has owned and operated this business for several years and is not required to file 1099's.She wants to maximize her depreciation this year.Also, she says that she only sponsored her niece's soccer team because they agreed to put her company name on the back of their jerseys.Also, the "Home Internet Connection" is set up separately from their personal connection as Skyler doesn't like her business connection to be 'bogged down'. The Quickbooks course was taken at a non-accredited tech school and was only taken for her to help with her business.The tax prep fees are the amount that their past CPA charged just to prepare the Schedule C on their prior return as shown on the file.

Walter rents out their prior home.The home was bought in 2014 for $115,000 ($25,000 was allocated to the cost of the land at the time).Rent on the home totaled $12,000 for the year.Expenses on the home were as follows: $4,509 in interest on the mortgage, $300 for insurance, $1,430 in real estate taxes, and $560 in repairs.Walter drives out to the home once a month to check on the home and collect rent checks and estimates that it is 25 miles each way.

Walter paid $500 in medical expenses this year (not including the long-term care costs mentioned above)

Real estate taxes on their personal residence totaled $2,450 and they paid $12,700 in mortgage interest on their personal residence.They also paid $12,500 to remodel the downstairs bathroom.

Walter and Skyler paid $500 in property taxes on their personal vehicles.New Mexico assesses property taxes on vehicles based on the age of the vehicle.

He gave $5,600 in cash to the United Way this year.He also donated several hundred shares of stock that he has held for several years to his local church.The stock had an original cost of $1,050 and was worth $16,090 when he gave it to the church.

Walter's commute to work is 25 miles one way.He does not get reimbursed for fuel or other costs of his commute.He also attended a conference in El Paso that was related to his occupation.Total costs for the trip were $1,500 and he was not reimbursed at all for these costs by his employer.

So now that we have all the information we need to complete this assignment, there are links that have all the forms we need to fill out and they are the most up to date versions. We need to make Walter and Skyler's federal income tax return for 2018.

Form 1040:https://www.irs.gov/pub/irs-pdf/f1040.pdf

Schedule A:https://www.irs.gov/pub/irs-pdf/f1040sa.pdf

Schedule C:https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

Schedule E:https://www.irs.gov/pub/irs-pdf/f1040se.pdf

the WHO Revenue from clients $26 0 0 0 Meals with clients $20. 0 software costs $1 50 .00 Office supplies $750. 00 New laptop $ 1 650. 00 Quickbooks course @ local college $500.00 Internet connection $ 1 200. 00 Operating supplies $ 600 .00 Advertising $250.0 Sponsorship of Niece 's Soccer team $750.DO Tax preparation fees $1 0 0 mileage und Going tohelp $ 304zazza a Employed a second scounty number For Official Use Only 555- 44 ONE HASASDOCK Greater identification manber kow I Whom ups cities expectation federal income tax mandated 10- 0090031 Brokegar's name adds , and i guide 1 12 63 1 Latin Social security worker Socks portray las withheld Sandia Labs 272 631 Duodecim waves and ben 5 983 Herfather who wishes 1235 456 E 1 12 631 1 633 Sunnyville NM 80809 I social security to NOCHANCE FOR of Control marion 1 10 Dependent care basehits NATION a Employee's ford name and walk WENT further of sonequations pher The time slotmachine for box to Walter Heisenberg 100 N Blackhind Or SW 13 Made Whoruns on Thereally 20 HERANGING FROM Rio Rancho NM 87121 thismorning Tellme Employee's address and 20 cock Frenchcanadian 15 0 ENERGY a Made Drummer 36 Sala MONE ton of IT State income tax to Love morgan Den Nie $8 Local showing law 20 jockey rate NMO016423 1 12 , 631 JUL - 2 Wage and Tax Statement WIND Department of the howmany Marian Rivera Soviet For Privacy Art And Paperwork Reduction Copy A For Social Security Administration Sand the entire page with Act Notice , as the separate instructions Form Wa to On W. 3 to the Social Security Administration , photocopies are not acceptable Call No 1020 Do Not Cut . Fold , or Staple Forms on This PageVOID CORRECTED PAYER'S name , street address , city of town , state or province , country . ZIP Payer's RIN ( optional ONE NO . 1545 01 12 or foreign postal code and telephone no Bank of New Mexico Interest income 2017 Interest 1724 Lajolla ST , SE Income Albuquerque NM 87125 $ 523 For 1099 - INT 2 Early withdrawal penalty Copy 1 AYER'S federal identification number RECIPIENT'S identification number IS 00 0123451 55- 44- 3121 3 Interest on US , Savings Bonds and Tress obligations For State Tax Department RECIPIENT'S name & Federal income tax withheld 5 Investment expenses Walter Heisenberg 6 Foreign tax paid Foreign country of US . possession Street address ( including apt . no . ) 100 N Blackbird DR SW 8 Tax exempt interest 8 Specified private activity bond interest City of town . state or province , country , and ZIP or foreign postal code Rio Rancho NN 87121 10 Market discount 14 Band premium ATCA filing IS requirement 2 Band premium on Treasury obligations 13 Sand premium on foot - exempt bond Account number ( see instructions ) 14 Tax exempt and tax credit 15 State 16 Stre identification no . 17 State tax withheld bond CUSIP no Form 1099 - INT waits goulfor tossint Department of the Treasury . Internal Revenue Service