instructions:

Please complete the 2018 federal income tax return for Sarah Hamblin. Be sure to include only required tax forms when completing the tax return. For purposes of this assignment, unless instructed otherwise, you do not need to attach Form 8582. Also, ignore the requirement to attach the Form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps.

Sarah Hamblin and her now ex-husband Kevin were legally divorced on March 1, 2018. As of the end of the year, Sarah was unmarried. Sarah and Kevin had only one child, an 11 year old girl named Elizabeth. As part of the divorce decree, Sarah was given custody of Elizabeth and Kevin was required to pay 1) child support for Elizabeths care, and 2) alimony to Sarah until she remarries or dies. Because Kevin will be making child support payments, the divorce decree provided that Kevin will be permitted to claim the tax dependency exemption for Elizabeth until Elizabeth no longer qualifies as a tax dependent of either parent and the decree obligates Sarah to sign and/or file any required forms to cause this result to occur.

Sarah rents a home (separate from Kevin) that she pays for herself. Elizabeth lives with Sarah most of the time but she visits and stays with her father every other weekend and most holidays. During the year, Elizabeth stayed at Kevins house a total of 74 nights.

Sarah provided the following information:

• Sarahs Social Security number is 123-43-4321
• Elizabeths Social Security number is 123-34-1234
• Sarahs mailing address is 1245 Rose Petal Drive, Madison, Wisconsin 53562SSH
• Elizabeth is a U.S .citizen

The following was reported on Sarahs Form W-2:

Employer	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
Central Wisconsin Heating and Air	56,350	10,250	2,825

All applicable and appropriate payroll taxes were withheld by the employer.

During the year, Sarah also received the following:

Child Support Payment from Kevin Hamblin $12,000

Alimony Payment from Kevin Hamblin $16,000

Gift from her father to help with legal bills $ 8,500

Interest income on U.S. Treasury Bond $ 400

Interest income of Madison City Bond (municipal bond) $ 250

Interest income from First Bank of Madison $ 165

Life insurance proceeds on the death of her mother $45,000

Sarah won 10 tickets to the touring Broadway-style production of Wholesome. The value of the tickets was $200 each. Sarah took her friends from work to the production.

Sarah lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1,250 in unemployment benefits during the year. She is currently looking for another job.

Sarah did not own, control or manage any foreign bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year.

Sarah was provided with the following benefits as part of her employment:

• Group-term life insurance coverage of $50,000. The cost to cover Sarah for the company for the tax year is $150.

• Access to the company photocopy machine. Sarah estimates she made $40 worth of copies during the year primarily for use with her church group activities.

Please Apply 2018 Tax Rules.