need help with #8 please and thank you!

Instructions Comprehensive Problem 5-1 John Williams (birthdate August 2, 1974) is a single taxpayer. John's earnings and withholdings as the manager of a local casino for 2018 are reported on his Form W-2. John received Form 1098 from the Reno Bank & Trust. John's other income includes interest on a savings account at Nevada National Bank of $13,700. John pays his ex-wife, Sarah McLoughlin, $3,900 per month in accordance with their 2012 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,725 per month. His ex-wife's Social Security number is 554-44-5555. In 2018, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,660, which exceeds the estimated amount per the IRS tables. John participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $125 in 2018. During the year, John paid the following amounts (all of which can be substantiated): Credit card interest $1,760 4,300 Auto loan interest Auto insurance 900 Contribution to IRA 5,500 Property taxes on personal residence 2,640 Contributions to HSA 2,800 Income tax preparation fee 900 Charitable contributions (all cash): Boy Scouts 1,350 St. Matthews Church U. of Nevada (Reno) Medical School 3,100 26,900 Nevada Democratic Party 250 Fund-raising dinner for the Reno Auto 100 Museum (value of dinner is $25) Required: Complete John's Form 1040 and Schedules 1, A and B. Make realistic assumptions about any missing data. : John had health coverage for the entire year and he does not want to contribute to the presidential election campaign, Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". required round any dollar amount to the nearest dollar. John's W-2 Form John's earnings and withholdings as the manager of a local casino for 2018 are reported on his Form W-2: Visit the IRS website at www.irs.gov/efie Safe, a Employee's social IRS OMB No. 1545- security number accurate, 0008 file 555-94-9358 FASTI Use b Employer identification number 2 Federal income 1 Wages, tips, other (EIN) tax withheld compensation 31-1459656 195,800.00 25,000.00 4 Social security e Employer's name, address, and ZIP 3 Social security wages code 128,400.00 tax withheld Lucky Ace Casino 7,960.80 700 N. Sierra Street 5 Medicare wages and tips 6 Medicare tax Reno, NV 89503 195,800.00 withheld 2,839.10 7 Social security tips 8 Allocated tips 9 Verification code d Control number 10 Dependent care benefits e Employee's first name Last Suff. 11 Nonqualified plans 12a See instructions and initial for box 12 name John Williams 1324 Skyewalker Drive ld Reno, NV 8950o1 13 Statutory Retirement Third- 12b employee plan party Ic sick pay le 14 Other 12c le 12d F Employee's address and ZIP code 15 Employer's 16 State wages, 17 State 20 Locality 18 Local wages, 19 Local State state ID tips, etc. income tips, etc. income name number tax tax NV John's Form 1098 John received Form 1098 from the Reno Bank & Trust. a CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, *Caution: The city or town, state or province, country, ZIP or amount shown may foreign postal code, and telephone no. not be fully deductible by you. Limits based on the loan amount and the cost and value of the secured property may apply. Also, you may only deduct interest to the extent it was Reno Bank & Trust 49 Commerce Street B No. 1545- Reno, NV 89501 0901 Mortgage 2018 Interest Statement Form 1098 incurred by you, actually paid by you, and not reimbursed by Janother person. 1 Mortgage interest received from Copy B payer(s)/borrower(s)* For 18,956.78 Payer/Borrower RECIPIENT'S/LENDER'S PAYER'S/BORROWER'S 2 TIN 3 Mortgage Outstanding The information mortgage principal Jorigination date Jas of 1/1/2018 TIN in boxes 1 through 9 is important tax information and is 03/01/2002 33-1234569 592,700.00 555-94-93s8 being furnished to 4 Refund of 5 Mortgage insurance premiums overpaid interest the IRS. If you are required to file a return, a negligence PAYER'S/BORROWER'S name 6 Points paid on purchase of principal residence penalty or other John Williams sanction may be imposed on you if the IRS Street address (including apt. no.) 7x If address of property securing determines that mortgage is the same as PAYER'S/BORROWER'S address, the box is checked, or the address or description is entered in box 8. 1324 Skyewalker Drive an underpayment of tax results because you overstated a deduction for this 8 Address or description of property securing mortgage (see instructions) City or town, state or province, country, and ZIP or foreign postal code mortgage interest or for these Reno, NV 89501 points, reported in boxes 1 and 6; 9 Number of 10 Other or because you properties securing the mortgage didn't report the refund of interest (box 4); or because you claimed a Account number (see instructions) nondeductible item For Disclosure, Privacy Act, and Paperwork Reduction Act Cat. No. Form 1040 Notice, see separate instructions. 11320B (2018) Form 1040 (2018) John Williams 555-94-9358 Page 2 Wages, salaries, tips, etc. Attach Form(s) W-2 195,8 ble interest 2a Tax-exempt 13,70 2a 2b interest b Ordinary dividends Qualified dividends Attach | Form(s) W- ble 4a IRAS, pensions, 2. Also 4b 4a amount ble amount 1099-R if tax 6 Total income. Add lines 1 through 5. Add any amount attach and annuities Form(s) W- 5a Social security 5a 5b 2G and benefits was from Schedule 1, line 22 withheld. 209,5 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6. Standard Standard deduction or itemized deductions (from 12,00 x Schedule A)..... 9 Qualified business income deduction (see instructions). Deduction for- Single or married filing separately, 11 a Tax (see inst) $12,000 Married filing jointly or Qualifying widow(er), $24,000 10 Taxable income. Subtract lines 8 and 9 from line 7. If 10 zero or less, enter -0- (check if any from: 1 Form(s) 8814 2o Form 4972 3 0 b Add any amount from Schedule 2 and check here ... 11 12 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here... 12 Head of 13 Subtract line 12 from line 11. If zero or less, enter -0- Ihousehold. |13 Instructions Comprehensive Problem 5-1 John Williams (birthdate August 2, 1974) is a single taxpayer. John's earnings and withholdings as the manager of a local casino for 2018 are reported on his Form W-2. John received Form 1098 from the Reno Bank & Trust. John's other income includes interest on a savings account at Nevada National Bank of $13,700. John pays his ex-wife, Sarah McLoughlin, $3,900 per month in accordance with their 2012 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,725 per month. His ex-wife's Social Security number is 554-44-5555. In 2018, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,660, which exceeds the estimated amount per the IRS tables. John participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $125 in 2018. During the year, John paid the following amounts (all of which can be substantiated): Credit card interest $1,760 4,300 Auto loan interest Auto insurance 900 Contribution to IRA 5,500 Property taxes on personal residence 2,640 Contributions to HSA 2,800 Income tax preparation fee 900 Charitable contributions (all cash): Boy Scouts 1,350 St. Matthews Church U. of Nevada (Reno) Medical School 3,100 26,900 Nevada Democratic Party 250 Fund-raising dinner for the Reno Auto 100 Museum (value of dinner is $25) Required: Complete John's Form 1040 and Schedules 1, A and B. Make realistic assumptions about any missing data. : John had health coverage for the entire year and he does not want to contribute to the presidential election campaign, Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". required round any dollar amount to the nearest dollar. John's W-2 Form John's earnings and withholdings as the manager of a local casino for 2018 are reported on his Form W-2: Visit the IRS website at www.irs.gov/efie Safe, a Employee's social IRS OMB No. 1545- security number accurate, 0008 file 555-94-9358 FASTI Use b Employer identification number 2 Federal income 1 Wages, tips, other (EIN) tax withheld compensation 31-1459656 195,800.00 25,000.00 4 Social security e Employer's name, address, and ZIP 3 Social security wages code 128,400.00 tax withheld Lucky Ace Casino 7,960.80 700 N. Sierra Street 5 Medicare wages and tips 6 Medicare tax Reno, NV 89503 195,800.00 withheld 2,839.10 7 Social security tips 8 Allocated tips 9 Verification code d Control number 10 Dependent care benefits e Employee's first name Last Suff. 11 Nonqualified plans 12a See instructions and initial for box 12 name John Williams 1324 Skyewalker Drive ld Reno, NV 8950o1 13 Statutory Retirement Third- 12b employee plan party Ic sick pay le 14 Other 12c le 12d F Employee's address and ZIP code 15 Employer's 16 State wages, 17 State 20 Locality 18 Local wages, 19 Local State state ID tips, etc. income tips, etc. income name number tax tax NV John's Form 1098 John received Form 1098 from the Reno Bank & Trust. a CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, *Caution: The city or town, state or province, country, ZIP or amount shown may foreign postal code, and telephone no. not be fully deductible by you. Limits based on the loan amount and the cost and value of the secured property may apply. Also, you may only deduct interest to the extent it was Reno Bank & Trust 49 Commerce Street B No. 1545- Reno, NV 89501 0901 Mortgage 2018 Interest Statement Form 1098 incurred by you, actually paid by you, and not reimbursed by Janother person. 1 Mortgage interest received from Copy B payer(s)/borrower(s)* For 18,956.78 Payer/Borrower RECIPIENT'S/LENDER'S PAYER'S/BORROWER'S 2 TIN 3 Mortgage Outstanding The information mortgage principal Jorigination date Jas of 1/1/2018 TIN in boxes 1 through 9 is important tax information and is 03/01/2002 33-1234569 592,700.00 555-94-93s8 being furnished to 4 Refund of 5 Mortgage insurance premiums overpaid interest the IRS. If you are required to file a return, a negligence PAYER'S/BORROWER'S name 6 Points paid on purchase of principal residence penalty or other John Williams sanction may be imposed on you if the IRS Street address (including apt. no.) 7x If address of property securing determines that mortgage is the same as PAYER'S/BORROWER'S address, the box is checked, or the address or description is entered in box 8. 1324 Skyewalker Drive an underpayment of tax results because you overstated a deduction for this 8 Address or description of property securing mortgage (see instructions) City or town, state or province, country, and ZIP or foreign postal code mortgage interest or for these Reno, NV 89501 points, reported in boxes 1 and 6; 9 Number of 10 Other or because you properties securing the mortgage didn't report the refund of interest (box 4); or because you claimed a Account number (see instructions) nondeductible item For Disclosure, Privacy Act, and Paperwork Reduction Act Cat. No. Form 1040 Notice, see separate instructions. 11320B (2018) Form 1040 (2018) John Williams 555-94-9358 Page 2 Wages, salaries, tips, etc. Attach Form(s) W-2 195,8 ble interest 2a Tax-exempt 13,70 2a 2b interest b Ordinary dividends Qualified dividends Attach | Form(s) W- ble 4a IRAS, pensions, 2. Also 4b 4a amount ble amount 1099-R if tax 6 Total income. Add lines 1 through 5. Add any amount attach and annuities Form(s) W- 5a Social security 5a 5b 2G and benefits was from Schedule 1, line 22 withheld. 209,5 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6. Standard Standard deduction or itemized deductions (from 12,00 x Schedule A)..... 9 Qualified business income deduction (see instructions). Deduction for- Single or married filing separately, 11 a Tax (see inst) $12,000 Married filing jointly or Qualifying widow(er), $24,000 10 Taxable income. Subtract lines 8 and 9 from line 7. If 10 zero or less, enter -0- (check if any from: 1 Form(s) 8814 2o Form 4972 3 0 b Add any amount from Schedule 2 and check here ... 11 12 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here... 12 Head of 13 Subtract line 12 from line 11. If zero or less, enter -0- Ihousehold. |13