Magdalena Schmitz has undergone %nine major changes in her life recently. In 2015, at the age of 46, her husband. Roger. passed assay Magdalena in Pittsburgh remarried as of the end of 2017. Magdalena currently lists in Bedford, Pennsylvania. She was living rnin Pittsburgh when her husband passed assay but she moved back to her childhood home so she could get help from her family raising her children. Magdalena was employed in Pittsburgh early in the year but left that job and relocated 100 miles away to pursue a new life and sun her ness job. Magdalena has three children (ages as of the end of the year): Alyssa (22), Tyler (16). and Connor (11). Magdalena would like to determine her federal income tax under the filing status that is most ads advantageous rnfor her. 

 

Magdalena reported the following information: 

• Magdalena's social security number is 294-83-2845

• Alyssa's social security number is 824-84-8456

• Tyler's social security number is 824-34-9584

• Connor's social security number is 824-56-2984

• Magdalena's mailing address is 623 S. Liberty Road Bedford, Pennsylvania rnrn15522 

 

Alyssa is unmarried and a full-time graduate student at Pennsylvania State University rn(PSU) (EIN 33-9876543). PSU's address is 1250 Happy Valley., State College, PA 16801. She received her bachelor's degree the year her father passed assay. This year represents her fifth year of full-time higher education schooling. Alyssa rn works part-time in State College to help ith some of her Iiving expenses. Alyssa earned $2,300 in gross income during the year and had her income tax return prepared on campus by Volunteer Income Tax Assistance (VITA) volunteers. Magdalena provided support for Alyssa including paying for rent, books, tuition, food, clothes, medicine, and other support items. In total, Magdalena provided $12,700 of support for the year. NV provided Alyssa ith a Fonn I 098-T at year end. 

 

Alyssa's higher education expenses for her university studies were as follows: 

Tuition             $6,500

Books               $2.000

In order to permit Magdalena to maintain a full-time job, she sends Connor to a day care program after school five days a week. During they ear, Magdalena paid the day care operator S4,250 for Connor's earn.

The day care details are as follows:

Horizon Day Care

452 S. Patriot Road

Bedford, PA 15522

EIN-43-6598324

Magdalena incurred the following moving - reIated expenses during the year.

In addition she drove her car the 100 miles to Bedford as part of the move. Her previous workplace was located 10 miles from the previous home she was renting and her new job is exactly 100 miles away from her prior residence.

Magdalena’s W-2s for the year reported the following: 

   

Magdalena's employers withheld all applicable and appropriate payroll taxes. The entire Schmitz family was covered by minimum essential health insurance during each month in 2016. The insurance was provided by Magdalena's employers.

On January 1. 2016 (prior year). Magdalena started a photography business in which she takes bridal xand wedding photographs. She does not do any of the professional printing. However. she provides all of the digital tiles to her clients on a password-protected web site as part of her service. This unique service. along with her skill and reputation, has allowed her to earn additional money on the weekends. primarily in the summer, to help support her daughter in college. Magdalena rents all of the camera equipment from a friend and dots not currently own any equipment herself. The photography' business uses the cash method of accounting. the business did not have any obligation to file a Form 1099 to any payee during the year. Magdalena reported the following re% enue and expenses for her business for the year: 

   

Magdalena did not own, control or manage any foreign bank accounts, nor was she a grantor or beneficiary of a foreign trust during the tax year. 

Magdalena paid or incurred the following expenses during the year: 

 

Magdalena wants to contribute to the Presidential Election Campaign Fund. She would like to receive a refund (if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check. 

Employer Gross Wages Income Federal Income Tax State Withholding $900 Tax Withholding $700 Juniata Development $48,435 Corporation Pittsburgh Real Estate $2,450 $200 $125