Just need assistance in completing the project. Can you help with the completion of the relevant forms?

Roger and Nancy Carlson reside at 2843 Fairfax Lane, Fort Collins CO (80525) with their fourteen-year-old daughter, Samantha (333-44-5555), and eleven-year-old son, Timmy (555-43-1212).Roger's social security number is 666-77-5555 and Nancy's is 789-65-4321.Roger is a warehouse manager. His W-2 shows wages of $61,772, federal income tax of $7,440, and state income tax of $2,109.

The Carlsons had interest income from Third National Bank of $286.They own shares in OK Mutual Fund, which reported to them $947 of ordinary qualified dividends, $828 of municipal bond interest, and $1,112 of long-term capital gain distributions.They have a long-term capital loss carryover from 2017 of $1,321.Nancy is also a member of an LLC in which she does not materially participate, with an ordinary loss of $1,000 from the flow-through activity.

On July 5, 2018 the Carlsons sold stock in three companies.Information is as follows:

Company _ Selling priceDate purchasedBasisDividends (qualified)

AX, Inc.$14,335May, 2010 $13,219$281

BY Corp.$6,156June, 2007 $ 6,658$145

CZ, Inc.$8,775July, 2006 $ 7,943None

Nancy makes custom-made toys under the name of "Nancy's Nook".During the year she bought small tools for $1,130.Nancy put 13,430 business miles on her SUV during the year, out of a total of 41,590 driven.She operates out of her home, where she has her business office and workshop.The basement (756 square feet out of 3150 total) is used exclusively for business. Nancy uses the cash method of accounting to maintain her business records, does not have any inventory since she produces only to order, and is exempt from UNICAP.She does not have any depreciable business assets because she always uses Sec. 179 or bonus depreciation. Her sales for the year were $59,691.Her expenses were:

Cost of goods sold$17,796

Advertising956

Cell phone (business only)1,152

Interest (business loan)295

Professional fees810

Supplies993

Taxes and licenses600

Miscellaneous286

Other expenses for the Carlsons include: home mortgage interest, $7,734; real estate tax, $2,145; household utilities, $6,032; furnace repairs, $822; house insurance, $695; personal property tax (personal car), $143; cash charitable donations, $2,367; Roger's unreimbursed work expenses, $3,510; medical expenses, $1,956.Their estimated tax payments paid during 2018 were: federal, $2,400; state, $800.On March 3, 2018, they filed their 2017 state income tax return, paying a balance due of $379.The Carlsons originally paid $227,600 for their house in 2005, of which $60,000 represented the value of the land.On January 11, 2019, Nancy contributed $4,000 to her traditional IRA for tax year 2018.

Required:Prepare the 2018 federal income tax return for Roger and Nancy Carlson, including any necessary IRS schedules and forms, as well as computational schedules.You may assume that the taxpayer has adequate records for all items, as required by IRS.

Some practical notes:

1.Put your name(s) in upper right corner of 1040.Do not sign as taxpayer or preparer.All supporting forms and schedules should be in proper sequence, using IRS sequence numbers.Those without a number should be placed at the end.

2.Use a Schedule A whether it is used or not.

3.Include a schedule showing your tax computation.

4.Do not enter zero on a line unless specifically called for or implied by a calculation.

5.Round all amounts to the nearest dollar.

6.Returns are to be prepared by hand, not using software.

7.You will need to refer to the instructions for Form 1040 and the related schedules, especially Schedule D.IRS Publication 17 contains general information on preparing individual returns.