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Hi ! This assignment is to fill out a tax form- 1040. The answers I'm finding (in the document on Course Hero- BUS-FP4065_Assessment5-1F1040.pdf) are putting

Hi! This assignment is to fill out a tax form- 1040. The answers I'm finding (in the document on Course Hero- BUS-FP4065_Assessment5-1F1040.pdf) are putting WAGES- 26,000 for the 7th box on the form. The actual question being asked lists information to input into the form, and lists 31,000 as the wage of the wife. I cannot understand where 26,000 is coming from or what would be subtracted from it to have a lower wage.The amount for the business was given in a previous assignment: Here's the instructions

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.

oSocial 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.

oShe earned $31,000 in 2018.

Income Taxes: $4,200 withheld.

Interest received from Local Bank:$6,575.

Estimated tax payments: $25,000.

o$350 paid with their 2017 state tax return.

Jacob and Taylor bought their first house in 2018.

oHome mortgage interest: $12,246.

oProperty 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).

oIt 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.

oShe 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.

oThey paid deductibles and co-payments of $2,550.

image text in transcribed
Form 1040 U.S. Individual Income Tax Return 2018 (99) Department of the TreasuryInternal Revenue Service Filing status: Single Married filing jointly Your first name and initial Qualifying widow(er) Your social security number Someone can claim you as a dependent If joint return, spouse's first name and initial Spouse is blind Head of household IRS Use OnlyDo not write or staple in this space. Last name Your standard deduction: Spouse standard deduction: Married filing separately OMB No. 1545-0074 You were born before January 2, 1954 You are blind Spouse's social security number Last name Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 Spouse itemizes on a separate return or you were dual-status alien Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign (see inst.) You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Dependents (see instructions): (1) First name (2) Social security number Full-year health care coverage or exempt (see inst.) If more than four dependents, see inst. and here (3) Relationship to you Last name (4) if qualifies for (see inst.): Child tax credit Credit for other dependents Sign Here Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Joint return? See instructions. Keep a copy for your records. Paid Preparer Use Only Your signature Date Your occupation Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Preparer's name Preparer's signature PTIN If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Firm's EIN Check if: 3rd Party Designee Firm's name Phone no. Self-employed Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2018) Page 2 Form 1040 (2018) Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. Standard Deduction for Single or married filing separately, $12,000 Married filing jointly or Qualifying widow(er), $24,000 Head of household, $18,000 If you checked any box under Standard deduction, see instructions. Refund Direct deposit? See instructions. 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . 1 2a Tax-exempt interest . . . 3a Qualified dividends . . . 2a b Taxable interest . . . 2b 3a b Ordinary dividends . . 4a 3b IRAs, pensions, and annuities . 4a b Taxable amount . . . 4b 5a Social security benefits 5a b Taxable amount . . . 5b 6 7 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 . . . . . 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 . . . . . . . . . . . . . . . . . 6 8 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . . . 8 9 Qualified business income deduction (see instructions) . . . . . . . . . . . . 9 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- . . . . . . . . 10 11 a Tax (see inst.) Form 4972 3 . . . . . . (check if any from: 1 . . . . . . 2 Form(s) 8814 b Add any amount from Schedule 2 and check here . . . . . . . . . . . . . . . 7 ) 11 12 12 a Child tax credit/credit for other dependents 13 Subtract line 12 from line 11. If zero or less, enter -0- . . . . . . . . . . . . . . 13 14 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . . . 14 15 Total tax. Add lines 13 and 14 . . . . . . . . . . . . . . . . . . . 15 16 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . 16 17 Refundable credits: a EIC (see inst.) . b Add any amount from Schedule 3 and check here b Sch. 8812 c Form 8863 Add any amount from Schedule 5 . . . . . . . . . . . . . . 17 18 Add lines 16 and 17. These are your total payments . . . . . . . . . . . . . . 18 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 d Account number 21 Amount You Owe 22 23 Amount of line 19 you want applied to your 2019 estimated tax . c Type: . . . Checking . Go to www.irs.gov/Form1040 for instructions and the latest information. . . . . . . 19 20a Savings 21 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions Estimated tax penalty (see instructions) . . . . . 22 23 Form 1040 (2018)

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