Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2018, he had the following receipts:

Salary $80,000

Interest Income $4,400

Inheritance $60,000

Life Insurance proceeds $200,000

Amount from sale of St. Louis lot $80,000

Proceeds from estate sale $9,000

Overpayment refund from 2017 $700

Logan inherited securities worth $60,000 from his uncle, who died in 2018. Logan also was the designated beneficiary of an insurance policy on his uncles life with a maturity value of $200,000. The lot in saint louis was purchased on May 2, 2013, for $85,000 and held as an investment. As the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2018, for $80,000. The estate sale consistent largely of items belonging to Sara and Daniel (e.g. camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died.

Logan's expenditures for 2018 include the following:

Medical expenses (including $10,500 for dental) $11,500

MO income state tax $4,200

Federal income tax $4,500

Interest on mortgage $5600

Contribution to church $4,800

Logan and his dependents are covered by his employer's health insurance policy for all of 2018. However, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him. Logan normally pledges$2,400 ($400 per month) each year to his church. On December 5, 2018, upon the advice of his pastor, he prepaid his pledge for 2019.

Logan;s household, all of whom he supports, includes the following:

Logan Taylor; 58; SSN 123456787; 08/30/1970 DOB

Helen Taylor; 70; SSN 123456780; DOB 01/11/1948

ASHER TAYLOR; 23; SSN 123456783; DOB 7/8/1995

MIA TAYLOR; 22; SSN 123456784; DOB 2/16/1996

Helen receives a modest Social Security benefit. Asher, a son, is a full time student in dental school and earns $4,500 as a part time dental assistant. Mia, a daughter, does not work and is engaged to be married.

Part 1 Tax Computation:

Using the appropriate forms and schedules, compute Logan's income tax for 2018. Federal income tax of $4,500 was withheld from his wages. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes are withheld. Logan does not want to contribute to the presidential fund.