Meet the Moore Family. Your assignment is to prepare the couples federal income tax return, Form 1040 for the year ended December 31, 2018. Please utilize the facts below and the information included in the Tax Project file attached to complete this assignment. We will be using the 2018 federal income tax forms, rates and laws. With the new tax law changes at the beginning of this year, the 2018 tax forms are currently in draft form only (see attachment below). Since they are in a draft format, you will need to improvise and create a spreadsheet which resembles the 2018 federal income tax return (Line by Line) to calculate the 2018 federal income tax liability for Mr. & Mrs. Moore. Please complete Project 1 and submit it by uploading the assignment by the required due date.

Moore Family Tax Facts:

The Moore Family currently resides at 122 Janney Avenue, Harrisburg, PA 19917. They moved to this new home earlier in 2018.

Old Address 23 Ascot Drive, Lansdale, PA 19420.

Purchased Ascot Drive in September of 1999 for $150,000.

Sold Ascot Drive in January 2, 2018 for $275,000.

Buyers paid all of the closing costs and real estate fees.

New home at 122 Janney Avenue was purchased for $350,000.

The Moore Family added a new addition to their family on April 7, 2018, Demi. They just received her Social Security card: 135-90-1122.

Benjamin is still employed by AraMark Company, Inc. He is a project manager in their Harrisburg office. His W-2 is included in the Tax Project File.

Krista is still employed by Penn State University. She is a part time professor and researcher of tax issues. Her W-2 is included in the Tax Project File.

Investment Income:

Interest Income from National Federal Bank is included in the Tax Project File.

Dividend Income from XYZ Company, Inc. is included in the Tax Project File.

They also sold two stocks in 2013. The information is below:

200 shares of GE Company Purchased May 10, 2008 at $45/share Sold May 1, 2018 for $29/share

100 shares of Alpha Inc. - Purchased January 4, 2005 at $4.50/share Sold December 15, 2018 for $4.00/share

Other Expenses of the Moore Family:

Real Estate Taxes for 122 Janney Avenue = $4,250

Mortgage Interest for 122 Janney Avenue = 11,900

Out of pocket family medical and dental expenses = $1,090

Charitable Contributions to Holy Church = $1,200

The Moore Family would like to maximize all retirements options and tax credits.

Requirements:

Complete the 2018 Federal Income Tax Return for the Moore Family. Attach all supplemental schedules to complete your federal income tax return.

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