1. James Kelley is married and lives with his wife, Diana Kelley and a 9-year-old daughter, Emily Kelley. He drove full-time for Lyft in 2018 - 30,293 business miles. He kept a detailed mileage log and kept track of all his business expenses. His income from Lyft was $54,000. He incurred $2,000 meal expenses in 2018. Diana is an elementary school teacher at a local public school. She paid $400 of school supplies in 2018. The school did not reimburse her the expense. Based on the facts above, please answer the following questions:
2. 1. What is the best filing status for James
3. 2. Can James deduct the business mileage on his tax return? If so, what is the dollar amount? Where will the expense be reported on his return? Please show your calculations.
4. 3. James incurred $2,000 meal expense in 2018. How much can he deduct on his tax return? Please explain.
5. 4. How much school supplies expense can Diana deduct on the tax return? Where will the deduction be reported?