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Individual Return 2 Alice]. and Bruce M. Smith are married taxpayers who le a joint return. 'Iheir social sectirity numbers are 12345-6789 and 111-11-1111, respectively.

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Individual Return 2 Alice]. and Bruce M. Smith are married taxpayers who le a joint return. 'Iheir social sectirity numbers are 12345-6789 and 111-11-1111, respectively. Alice's birthday is September 21, 1966, and Bruce's is Iune 27, 1965. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the ofce manager for Lowdl Dental Clinic Bruce is the self-employed physical therapist. The following infomal'lon is shown on Alice's Wage and Tax Statement {Form W2) [or 201?. Dividend income (qualied dividend) from investing in Apple $200 Inc A gain from selling Nettlix stock (hold for? months) 5,000 A loss from selling Bank of America stock (hold for 15 months) (1,500) An non-business bad M! tax treatment as short-term (2,000) capital loss) The Smiths had the following arpenses relating to their personal residence during 2017 Property Tame; $5.000 Qualied interest onhome mortgage $3,300 Medical expense for 2017: Medical insurance premium paid for two children. $4,500 Docnor bill for Sam 7,600 Operation for Sam 8,500 Hospital expense for Sam 3% Utilities 4,100 Union dues paid by Alice 600 Alice's work uniform expenses 4.50 Line Description Alice 1. Wage, tips, other compensation $58,000 2. Federal income tax withheld 6,960 4. Social secmity tax withheld 3,596 6. Medicare tax withheld B41 17. State income tax withheld 2,610 Dining 201?, Bruce recorded the following items of his business: Revenue from patient Visits $270,000 Property tax on the ofce 4,500 Mortgage interest on the ofce 12,000 DepreCiation on the office 5,500 Malpractice insurance 37,500 Utilities paid forthe of'fioe 13,?50 Office staff salaries 51,000 Rent payments on equipment 15,000 health insurance premium paid for himseli= 2,500 health insurance premium paid for his employees 5,000 d Bruce made the quarterly feda'al lax paymenls totaled $40,000 same as tax withheld and should be reported on line 64] The Smiths provide over half of the support of their two children, Cynthia (born Ianuary 25, 1989, Social security number 12345-6788) and Iohn (born February 7, 1995, Social Security number 12341545786). Both children are fullitime students and live with the Smiths except when they are away at college. Cynthia earned 54,200 from a summer internship in 2017, and John earned $3,800 from a part-time job. During 201?, The Smiths furnished 60% of the total support of Bruce's widower father, Sam Smith (born March 5, 1937, social security number 123456777). Sam died in November, and Bruce, the beneciary of a policy on Sam's life, received life insurance proceeds of $800, 000 on December 28. The Smiths also made some investment activities during 2017. The following information is shown their investment income ,i (loss) for 2017. Prepare theFederalincometaxretumuf2017fDrthe Smiths.YouwillincludeFom1 1044}, Schedule C, Schedule 5E (usetheist page OISE to calculate), and Schedule A. Therliowrng onpmtmt teeming objectives are covered in this It'll return protect: Dermnim gross income (cg. life insurance proceeds) Cclmicte Business income fusing Schedule C) Dam": quailing child end 1;:nt relative Determine seifwlaymeni in (use mhec'ule SE) Dam": the amount grim deduction {9.3. nautical expenses} Personai and dzpmdmi exemptions Capital gaincss Ccimicle mes Hint: the difcult in treatments should be wired to thefbowing items Health insu'rmrce premim midr Bruce Smith ima' his dependent; should be reportedcn page 1 Form 1040,0125 \"For AGideducon) Health insurance Fran-rim puidjr Bruce's employees {should he reported on Sch. C) Unreimbursed medical expenses paidfbr wingers midzmy members (should reported an Sch. A.) Check numbers AGI: 169556 Taxable income :130063; refund of $5218 (line 75)

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