Kathleen Kramer (SS#444-55-1111) & John Kramer (SS# 456-89-1234) live at 123 Griffin St. Anywhere, TX 78945. Kathleen and John were married six months after graduating college Kathleen is marketing analyst and John is a firefighter. They have no children and choose the married filing jointly status. According to their W-2s, Kathleen made $29,435 for the year and had $1,546 withheld from her pay for federal income tax. John made $27,389 for the year and had $1,345 withheld from his pay for federal income taxes. They paid student loans from attending Baylor University during the year with interest for their loans totaling $2,035. John and Kathleen have an emergency savings account set up (since they learned the importance of that in an accounting class they once took!) and it earned interest totaling $111 for the year. In August they took a trip to California and Kathleen was actually chosen as a contestant on the Price is Right. She was a big winner of an outdoor adventure themed package worth $25,000 and received a set of mountain bikes, a boat and snow skis. John had a birthday and his grandfather gave him 10,000. Kathleen & John elect to use the standard deduction for the year since they don't own a home and didn't make any charitable contributions this year Problem Assume you are preparing the tax return for Kathleen & John for the year 2018. Go to canvas and print out the 1040 return as well as a Schedule 1 that has been provided and complete both for Kathleen & John. You need to fill out the name, filing status & complete the overall tax calculation. As a little help, you should have amounts in the following boxes on the 1040: 1,2b,6,7,8,10,11,13,15,16,18,22; you should have amounts in the following boxes on schedule 1: 21,22,33,36. Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing status: Single Your first name and initial Married filing jointly Married filing separately Head of household Qualifying widow(er) Last name Your social security number Your standard deduction: Someone can claim vou as a dependent If joint return, spouse's first name and initial You were born before January 2, 1954 You are blind Last name Spouse's social security number Spouse standard deduction:Someone can claim your spouse as a dependentSpouse was born before January 2, 1954Full-yoar health care coverage or exempt (see inst.) Presidential Election Campaign (see inst) You Spouse If more than four dependents, Spouse is blind Spouse itemizes on a separate return or you were dual-status alien Home address (number and street). If you have a P.O. box, see instructions. City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6 Dependents (see instructions): no see inst. and here (2) Social security number 3) Relationship to you (4) Child tax credit it qualifies for (see inst.): (1) First name Last name Credit for other dependents Sign Here Joint return? See instructions. Keep a copy orS your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and bellef, they are true, correct, and complete. Declaration of preparer (other than taxpayer) based on all information of which preparer has any knowledge. If the IRS sent you an Identity Protection PIN, enter it here (see i Your signature Spouse's signature. If a joint return, both must sign. Date Preparer's name Date Your occupation Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst Preparer's signature PTIN Firm's EIN Check if Paid 3rd Party Designee Preparer Use Only Fim's nanme Firm's address Phone no For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Fom 1040 (2018) 4 Additional Income and Adjustments to Income Attach to Form 1040. Go to www.irs.gov/Form 1040 for instructions and the latest information. 8 1-9b 8 10 Taxable refunds, credits, or offsets of state and local income taxes 1 .. .. . 12 Business income or (loss). Attach Schedule C or C-EZ 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here13 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 8 21 Other income. List type and amountPrize (Price is Right) 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 2 2 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106.. 24 Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces to Income 5 25 26 9 1 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans . . 29 Self-employed health insurance deductio 29 30 Penalty on early withdrawal of savings . .30 31a Alimony paid b Recipient's SSN 6 36 Add lines 23 through 35 For Paperwork Reduction Act Notice, see your tax return instructions. 36 4 Kathleen Kramer (SS#444-55-1111) & John Kramer (SS# 456-89-1234) live at 123 Griffin St. Anywhere, TX 78945. Kathleen and John were married six months after graduating college Kathleen is marketing analyst and John is a firefighter. They have no children and choose the married filing jointly status. According to their W-2s, Kathleen made $29,435 for the year and had $1,546 withheld from her pay for federal income tax. John made $27,389 for the year and had $1,345 withheld from his pay for federal income taxes. They paid student loans from attending Baylor University during the year with interest for their loans totaling $2,035. John and Kathleen have an emergency savings account set up (since they learned the importance of that in an accounting class they once took!) and it earned interest totaling $111 for the year. In August they took a trip to California and Kathleen was actually chosen as a contestant on the Price is Right. She was a big winner of an outdoor adventure themed package worth $25,000 and received a set of mountain bikes, a boat and snow skis. John had a birthday and his grandfather gave him 10,000. Kathleen & John elect to use the standard deduction for the year since they don't own a home and didn't make any charitable contributions this year Problem Assume you are preparing the tax return for Kathleen & John for the year 2018. Go to canvas and print out the 1040 return as well as a Schedule 1 that has been provided and complete both for Kathleen & John. You need to fill out the name, filing status & complete the overall tax calculation. As a little help, you should have amounts in the following boxes on the 1040: 1,2b,6,7,8,10,11,13,15,16,18,22; you should have amounts in the following boxes on schedule 1: 21,22,33,36. Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing status: Single Your first name and initial Married filing jointly Married filing separately Head of household Qualifying widow(er) Last name Your social security number Your standard deduction: Someone can claim vou as a dependent If joint return, spouse's first name and initial You were born before January 2, 1954 You are blind Last name Spouse's social security number Spouse standard deduction:Someone can claim your spouse as a dependentSpouse was born before January 2, 1954Full-yoar health care coverage or exempt (see inst.) Presidential Election Campaign (see inst) You Spouse If more than four dependents, Spouse is blind Spouse itemizes on a separate return or you were dual-status alien Home address (number and street). If you have a P.O. box, see instructions. City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6 Dependents (see instructions): no see inst. and here (2) Social security number 3) Relationship to you (4) Child tax credit it qualifies for (see inst.): (1) First name Last name Credit for other dependents Sign Here Joint return? See instructions. Keep a copy orS your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and bellef, they are true, correct, and complete. Declaration of preparer (other than taxpayer) based on all information of which preparer has any knowledge. If the IRS sent you an Identity Protection PIN, enter it here (see i Your signature Spouse's signature. If a joint return, both must sign. Date Preparer's name Date Your occupation Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst Preparer's signature PTIN Firm's EIN Check if Paid 3rd Party Designee Preparer Use Only Fim's nanme Firm's address Phone no For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Fom 1040 (2018) 4 Additional Income and Adjustments to Income Attach to Form 1040. Go to www.irs.gov/Form 1040 for instructions and the latest information. 8 1-9b 8 10 Taxable refunds, credits, or offsets of state and local income taxes 1 .. .. . 12 Business income or (loss). Attach Schedule C or C-EZ 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here13 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 8 21 Other income. List type and amountPrize (Price is Right) 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 2 2 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106.. 24 Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces to Income 5 25 26 9 1 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans . . 29 Self-employed health insurance deductio 29 30 Penalty on early withdrawal of savings . .30 31a Alimony paid b Recipient's SSN 6 36 Add lines 23 through 35 For Paperwork Reduction Act Notice, see your tax return instructions. 36 4