Josh and Emily Riley are a young married couple without any children who live in Illinois. Josh graduated from a public university in May of 2019 and began his job at a local accounting firm in July of 2019. Emily is a self-employed consultant. Use the below information to complete Page 1 and 2 of their 2019 Form 1040. Round numbers to the nearest dollar. I wont subtract points if you are off by a couple dollars due to rounding differences.

• Josh received the following earnings statement from his employer:

Gross Salary	30,000
Employee portion of health insurance premiums (pretax)	(500)
Employee 401(k) contribution	(1,500)
Federal Withholding Tax	(4,000)
State Withholding Tax	(1,000)
FICA Social Security and Medicare withholding	(2,295)
Net Pay	$22,705

*His employer also matched his 401(k) contribution dollar-for-dollar

• Emily netted $70,000 of income from her consulting business.
• Not included within her self-employment net income are the following:
  • Emily paid $6,000 of health insurance premiums because she was not eligible to receive coverage from Joshs employer.
  • Emily made $8,000 of estimated tax payments to the federal government in 2019.
  • Emily also made $2,000 of estimated tax payments to Illinois in 2019.
  • Emily contributed $3,000 to a Roth IRA for the 2019 tax year.
• Josh and Emily had the following investment items during 2019: $500 of qualified dividends and a $4,000 loss on stock that Josh held for several years in a normal investment account.
• Josh and Emily paid $1,200 of student loan interest during 2019. The AGI phase out range for married joint filers is $130,000-$160,000.
• Josh and Emily will not have enough itemized deductions to exceed their standard deduction.
• Calculate tax due here and report accordingly on the tax return.
• Josh paid $5,000 in tuition for the spring semester of 2019. He was in the fourth year of his undergraduate studies. They would like to claim the maximum American Opportunity credit possible. The AGI phase out range for married joint filers is $160,000-$180,000. Note that 40% of the AOC is refundable while 60% is nonrefundable.

Items of Income Line 1 - Wages and Salaries: Line 2b - Taxable Interest: Blank Line 3b - Dividends: Lines 4&5: Blank Line 6 - Capital gain or (loss): Line 7 - Other income including Self-employment income: Total Income: Above the Line Deductions (you should have 3, enter them largest to smallest): Adjusted Gross Income (Subtract your above the line deductions from your total income and enter here): Below the Line Deductions Standard deduction or itemized deductions: QBI Deduction:

Taxable Income (Subtract your below the line deductions from your AGI and enter here):

Tax Liability Calculation Tax on any ordinary income: Tax on any preferential items: Total Income Taxes:

Nonrefundable Credit:

Subtotal 1 (Income Tax Liability - Nonrefundable Credit):

Other Taxes: Subtotal 2 (Total Tax = Subtotal 1 + any Other Taxes):

Prepayments and Refundable Credits Tax Withheld: Other Tax Prepayments: Refundable Credits: Subtotal 3 (Sum all Prepayments and Refundable Credits): FINAL ANSWER: AMOUNT OWED / (REFUND DUE):