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Need 1040 form filled out with both part A and part B information filled in from question attached. 6. Choosing and preparing an individual tax
Need 1040 form filled out with both part A and part B information filled in from question attached.
6. Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the financial information shown below for that calendar year A blank Form 1040 and Schedule 1 may be obtained at www.IRS.gov. Scholarship used to pay tuition $ 5,750 Scholarship used to pay room and board 1,850 Salary 55,000 Interest income 185 Potential itemized deductions 3,000 Income taxes withheld 2,600 a. Prepare Liam's 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3. b. Prepare Liam's 2018 tax return using the data in part a along with the following information: IRA contribution Cash dividends received $5,000 150 Form 1040 (2018) Page 2 1 2b 3b 4b 5b 6 7 8 9 10 11 12 13 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest Attach Form(s) W-2. Also attach Qualified dividends. 3a b Ordinary dividends Form(s) W-2G and 1099-R if tax was 4a IRAs, pensions, and annuities 4a b Taxable amount withheld. 5a Social security benefits 5a b Taxable amount 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, Standard subtract Schedule 1, line 36, from line 6 Deduction for 8 Standard deduction or itemized deductions (from Schedule A) Single or married filing separately, 9 Qualified business income deduction (see instructions) $12,000 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- Married filing jointly or Qualifying 11 a Tax (see inst.) (check if any from: 1 Form(s) 8814 3 2 Form 4972 widow(er) $24,000 b Add any amount from Schedule 2 and check here Head of 12 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here household, $18,000 13 Subtract line 12 from line 11. If zero or less, enter-O- If you checked 14 Other taxes. Attach Schedule 4. any box under Standard 15 Total tax. Add lines 13 and 14 deduction, 16 see instructions. Federal income tax withheld from Forms W-2 and 1099 17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments 19 Refund If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here Direct deposit? Routing number c Type: Checking Savings See instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. 14 15 16 17 18 19 20a b 22 Form 1040 (2018)Step by Step Solution
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