Income Tax Return Preparation

Please complete the 2018 federal income tax return for Roger R. and Michelle N. Stewart (Problem 1 Appendix E of the 2020 Individual Income Taxes textbook). You are to prepare both the return along with the appropriate supporting forms and schedules following the following guidelines: Make the necessary assumptions for information not give but needed to complete the return. The Stewarts are preparing their own return. The Stewarts have the necessary written substantiation (e.g., records, receipts) to support the transaction reported in their tax return. If the Stewarts have an overpayment of tax, they want it applied to their 2019 estimated taxes. The Stewarts do not wish to contribute to the Presidential Election Campaign Fund,

Please use the following as indicators as to whether you are on the correct path. Please do not be concerned about any small differences between these and the results you get. Different tax preparation software packages often give slightly different results. Adjusted Gross Income (1040 - Line 7) 148,300 Taxable Income (1040 - Line 10) 89, 715 Total Tax (1040 - Line 15) 10,016 Refund (1040 - Line 19) 411

Adjusted Gross Income (1040 - Line 7) 148,300

Taxable Income (1040 - Line 10) 89, 715

Total Tax (1040 - Line 15) 10,016

Refund (1040 - Line 19) 411

Forms Required:

1040 U.S. Individual Income Tax Return

Schedule A Itemized Deductions

Schedule B Interest and Ordinary Dividends

Schedule C Profit and Loss From Business

Schedule D Capital Gains and Losses

8949 Sales and Other Dispositions of Capital Assets

Schedule SE Self-Employment Tax

6251 Alternative Minimum Tax-Individuals

8582 Passive Activity Loss Limitations