Instructions Note: This problem is for the 2018 tax year. Alfred E. Old and Beulan A. Crane, each age 42, married on September 7, 2016. Alfred and Beulah will fie a joint return for 2018. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted old as her married ante They live at 211 Brickstone Drive, Atlanta, GA 30304 Alfred was divorced from Sarah old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2018. In addition, in January 2018, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Ano, Alfred is responsible for all prior years Income taxes Sarah's Social Security number is 12345-6788 Alfred's salary for 2018 is $150,000. He is an executive working for Cherry, Inc. (Federal LD. NO. 987654321). As part of his compensation package Cherry provides him with your term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $6.000 for state income taxes. The proper amounts were withheld for FICA taxes Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111) as a public defender She receives a salary of $42,000 in 2018. Mer employer withheld $7,500 for Federal income tants and $2,400 for state income taxes, The proper amounts were withheld for FICA taxes Alfred and Beulah had interest income of $500. Alfred and Beulah receive a $1,900 refund on their 2017 state income taxes. They temed deductions on their 2017 Federal income tax return (total of $15.000). Alfred and Betah pay $4.500 interest and $1.450 property taxes on their personal residence in 2018. Their charitable contributions total $2.400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2016 and do not want to contribute to the Presidential Election Campaign Required: Compute the Olds' net tax payable (or refund due) for 2018. Use Form 1040 and Schedule 1 to complete this tax retum . It may be necessary to complete the tax schedule and worksheet before completing Form 1040 Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "o". Make realistic assumptions about any missing data. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2016 Tax Rate Schedule provided. Do not use the Tax Tables Form 1040 Complete Form 1040 for the Olds. Form Department of the Treasury Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2018 OMB No. 1545-0074 IRS Use Only Filing status Last name Your first name and initial Alfred L. Old Your standard deduction Your social security number 111-11-1109 Last name If Joint return, spouse's first name and initial Beulah A. Old Spouse's social security number 123-45-6780 Spouse standard deduction someone can claim your spouse as a dependent Spouse was born before January 2, 1954 Spouse is blind Spouse comes on a separate return or you were dual status alien Full-year health care coverage or comot (see Home address (number and street). If you have a RO.box, see instructions Apt.no Presidential Election Campaign 211 Brickstone Drive (einst.) City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. If more than four dependents, Atlanta, GA 30304 Inst, and here Dependents (see instructions): (2) Social security number (3) Relationship to you (4) vif qualities for (see inst.) (1) First name Last name Child tax credt Credit for other dependents Check My Work 10 Sign Here Joint natur Under penalties of perjury, I declare that have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief they are trut, correct, and complete. Dedaration of prepare (other than taxpayer) is based on all information of which preparer has any knowledge Your signature Data Your occupation If the RS sent you an identity Executive Protection PIN, ante it here (scet.) Spouse's signature. I joint Date Spouse's occupation If the IRS sent you an identity return, both musign Lawyer Protection PIN, enter it here (see inst.) instructions Keep a copy for Your records Preparer's name Preparer's signature Self-Prepared PTIN Pirm's IN Paid Preparer Use Only Firmame Check if 3rd Party Degree Self-employed Phone Firm's address BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2016) Form 1040 (2013) Alfred E. and Beulah A. Old Wages, salaries, tips, etc. Attach Form(a) W-2 111-11-1109 Page 2 1 1 2a Taxable interest 25 Ja b Ordinary dividends 3b Tax-exempt interest Qualified dividende TRAS, Bensions, and annuities Social security benefits ta b Taxable amount Attach Form(s) W- 2. Also attach Form(s) W-2G and 1099-R tax was withheld 4b 50 Taxable amount 5b Tel withheld. Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 6 7 Adjusted gross income. If you have to adjustments to income, enter the amount from line 6 otherwise, subtract Schedule 1, line 36 from line 6 7 Standard Standard deduction or itemized deductions (from Schedule A) Deduction for 3 - Single or married 19 Qualified business income deduction (see instructions) 9 niling separately 10 Table income Subtracties 8 and 9 from line 7. If zero or tess, anter. 10 $12.000 Married filing 11 a Tox (see inst (check it any trom 1 Form(6) 6814 Jointly or Qualifying 2n Form 4972 widower), $24,000 b Add any amount from Schedule 2 and check here 011 - Head of 12 a Child tax credit/credit for other dependents household Add any amount from Schedule and check here 12 $10,000 If you checked 13 Subtractine 12 from line 11. 110 or less anter 13 any box under 14 Other ares Attach Schedule 4 14 Standard deduction, see 15 Total tax. Add lines 13 and 14 15 Instructions 16 Federal income tax withheld from Forms W-2 and 1099 16 17 Refundable credits a E1C (sest.) b Sch8812 Form 663 Add any amount from Schedule 5 17 10 Add lines 16 and 17. These are your total payments 18 19 Refund If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 19 20a Amount of line 19 you want refunded to you. If Farm 8888 s attached, check here 200 Direct deposit Routing number X X X X X X X X X Type Checking swings See instructions d Account number xxxxxxxxxxxxxxx 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount 22 Amount you owe. Subtract line 18 from the 15. For details on how to pay instructions 22 You Owe 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form1040 for instructions and the latest Information Form 1040 (2016) Schedule Complete Olds Schedule for 2018 SCHEDULE 1 OMB No 1545-0024 (Form 1040) Additional Income and Adjustments to Income 2018 Department of the Treasury Internal Attach to Form 1040. Attachment Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest Information. Sequence No. 01 Name(s) shown on Form 1040 Your social security number Alfred E. and Beulah A. Old 111-11-1109 Additional 1.9b Anserved Income 10 Texable refunds, credits, or offsets of state and local income taxes 10 11 Almeny received 11 12 Business income or (018). Attach Schedule Cor CZ 12 13 Capital gain or loss). Attach Schedule D if required. If not required, check here 13 14 15b 165 14 Other gains or losses). Attach Form 4797 15a Reserved 10a Reserved 17 Rental real estate, royalties, partnerships, corporations, trustsy eto Attach Schedule 18 Farm income or(s). Attach Schedule 19 Unemployment compensation 20a Reserved 17 18 19 200 21 Other income, Ust type and amount 21 22 8889 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and indude on Form 1040, Ine 6. Otherwise, go to line 23 Adjustments 23 Educator expenses 23 to Income 24 Certain business expenses of reservists performing artists, and fee-basis government officials. Attach Form 2106 24 25 Health savings account deduction. Attach Form 25 26 Moving expenses for members of the Armed Forces. Attach Form 3903 26 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEF, SIMPLE, and qualified plans 28 29 Self-employed health insurance deduction 29 30 Penkty on early withdrawal of savings 10 318 Aimony paid Recipient's SSN 12345678312 32 33 32 FRA deduction... 33 Student loan interest deduction 34 Reserved 35 Reserved 34 35 36 36 Add lines 23 through 35 BAA For Paperwork Reduction Act Notice, see your tax return instructions, Schedule 1 (Form 1040) 2018 EXHIBIT 4.3 Uniform Premiums for $1,000 of Group Term Life Insurance Protection 1 Attained Age on Last Day of Employee's Tax Year Under 25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70 and above Cost per $1,000 of Protection for One-Month Period $ 0.05 0.06 0.08 0.09 0.10 0.15 0.23 0.43 0.66 1.27 2.06 "Reg. 5 1.79-3, effective for coverage after June 30, 1999