How do you complete Schedule 1 of form 1040 with this information James and Esther Johnson are husband and wife and file a joint return They live at 45678 S W 112th Street, Homestead, FL 33033 James, who is 67 years old (date of birth 12 14 1952), is retired and receiving social security benefits, and Esther, who is 66 years old (date of birth 6 11 1953), is also retired but working on a part time basis Their social security numbers are 412 34 5670 and 412 34 5671, respectively Annual social security income for James is $22,000 (SSA 1099, box 5) and for Esther is $13,800 (SSA 1099, box 5) Interest received by them from Central Bank is $2,545 (1099 INT, box 1) No income tax withholding was made Esther is working part time as an interior decorator as an employee of Decorating House, a corporation Her form W 2 shows the following information Wages $ 25,000 00 Federal W H $ 2,500 00 Social security wages $ 25,000 00 Social security W H $ 1,550 00 Medicare wages $ 25,000 00 Medicare W H $ 362 50 Their itemized deductions are as follows Mortgage interest on their main home, $12,500 Real estate taxes, $7,600 Personal property taxes, $185 Doctors' expenses unreimbursed by insurance, $7,400 Medical insurance premiums for the year, $2,400 Prescribed medicine, $1,995 Vitamins, $300 Total cash contributions to their church, $675 The contributions were made over the course of the year and no individual contribution was greater than $250 Tax preparation fees for their 2018 return, $325, paid in 2019 Lottery tickets bought by Esther during the year, $750 Winnings received, $940 (W 2G, box 1) Income tax withholding on winnings, $35 (W 2G, box 4) Because the Johnsons live in Florida, where there is no state income tax, they will deduct the estimation of the general sales tax related to the area in which they live The most efficient way to do this is by using the Sales Tax Calculator on the IRS website at https www irs gov Individuals Sales Tax Deduction Calculator A key point to remember in using the calculator is that income for this calculation also includes the nontaxable portion of social security benefits Required Prepare their individual income tax return using the appropriate forms They do not want to contribute to the presidential election campaign and do not want anyone to be a third party designee For any missing information, make reasonable assumptions (List the names of the taxpayers and any income they receive in the order in which they appear in the problem Input all the values as positive numbers unless otherwise stated in the forms Instructions can be found on certain cells within the forms Round your final answers to the nearest whole dollar amount ) Use the appropriate Tax Tables or Tax Rate Schedules

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 25, 2024

How do you complete Schedule 1 of form 1040 with this information? James and Esther Johnson are husband and wife and file a joint return.

How do you complete Schedule 1 of form 1040 with this information?

James and Esther Johnson are husband and wife and file a joint return. They live at 45678 S.W. 112th Street, Homestead, FL 33033. James, who is 67 years old (date of birth 12/14/1952), is retired and receiving social security benefits, and Esther, who is 66 years old (date of birth 6/11/1953), is also retired but working on a part-time basis. Their social security numbers are 412-34-5670 and 412-34-5671, respectively.

Annual social security income for James is $22,000 (SSA-1099, box 5) and for Esther is $13,800 (SSA-1099, box 5).

Interest received by them from Central Bank is $2,545 (1099-INT, box 1). No income tax withholding was made.

Esther is working part-time as an interior decorator as an employee of Decorating House, a corporation. Her form W-2 shows the following information:


Wages	=	$	25,000.00
Federal W/H	=	$	2,500.00
Social security wages	=	$	25,000.00
Social security W/H	=	$	1,550.00
Medicare wages	=	$	25,000.00
Medicare W/H	=	$	362.50

Their itemized deductions are as follows:

Mortgage interest on their main home, $12,500.
Real estate taxes, $7,600.
Personal property taxes, $185.
Doctors' expenses unreimbursed by insurance, $7,400.
Medical insurance premiums for the year, $2,400.
Prescribed medicine, $1,995.
Vitamins, $300.
Total cash contributions to their church, $675. The contributions were made over the course of the year and no individual contribution was greater than $250.
Tax preparation fees for their 2018 return, $325, paid in 2019.
Lottery tickets bought by Esther during the year, $750. Winnings received, $940 (W-2G, box 1). Income tax withholding on winnings, $35 (W-2G, box 4).

Because the Johnsons live in Florida, where there is no state income tax, they will deduct the estimation of the general sales tax related to the area in which they live. The most efficient way to do this is by using the Sales Tax Calculator on the IRS website at https://www.irs.gov/Individuals/Sales-Tax-Deduction-Calculator. A key point to remember in using the calculator is that income for this calculation also includes the nontaxable portion of social security benefits.

Required:

Prepare their individual income tax return using the appropriate forms. They do not want to contribute to the presidential election campaign and do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions. (List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount.)

Use the appropriate Tax Tables or Tax Rate Schedules.