Note: This problem is for the 2018 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 852 Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11 1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund 01. She is a tax accountant with Mesa The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2018 Description Wages, tips, other compensation Federal income tax withheld Social Security wages Social Security tax withheld Medicare wages and tips Medicare tax withheld Amount $65,000.00 10,500.00 65,000.00 4,030.00 65,000.00 942.50 Arizona 65,000.00 1,954.00 State wages, tips, etc. State income tax withheld During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099- eth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included s2,200 of tate income tax withheld by her employer ees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 to have the tax turns processed by a computerized tax return service On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share On September 12, 2018, Beth sold the stock for $14 a share Beth bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500 n January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. ng the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenditures in connection with her software development Cost of personal computer Cost of printer Furniture Supplies Fee paid to computer consultant Beth elected to expense the maximum portion of the cost of the computer, printer, and furnitur allowed under the provisions of S 179. These items were placed in service on January 15, 2018, and used 100% in her business Although her employer suggested that Beth attend a convention on current developments in corporat taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospita bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350 Beth paid estimated taxes of $1,000 3,000 Required: Compute the Beth R. Jordan's net tax payable or refund due for 2018 by providing the following information that would be reported on Form 1040, Schedules A, B, C, D, SE, Form 8949, and Form 4562 .Make realistic assumptions about any missing data. .If an amount box does not require an entry or the answer is zero, enter "O" Enter all amounts as positive numbers. Assume Beth's qualified dividends and long-term capital gains tax rate is 15%. It may be necessary to provide information regarding the other schedules and forms before completing the requested information for Form 1040 When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. . Provide the following that would be reported on the Beth Jordan's Form 1040 status: The taxpayer's filing status: culate taxable gross income. 0 3. Calculate the total deductions for AGI 4. Calculate adjusted gross income. 034 s. Calculate the greater of the standard deduction or itemized deductions s12, o0o 6. Calculate the deduction for qualified business income. 7. Calculate total taxable income. 8. Calculate the income tax liability. 9. Calculate the self-employment taxes due. l0, 500+947.50 +15 10. Calculate total withholding and tax payments. 11. Calculate the amount overpaid (refund) 12. Calculate the amount of taxes owed: Feedback The calculation of taxable income begins with gross income. Gross income includes all income, unless the tax law provides for a specific exclusion. Individual taxpayers have two categories of deductions: (1) deductions for adjusted gross income (deductions from gross income to arrive at adjusted gross income) and (2) deductions from adjusted gross income. As a general rule, personal expenditures are disallowed as deductions in arriving at taxable income. However, Congress allows specified personal expenses as deductions from AGI (commonly referred to as itemized deductions). AGI is an important subtotal that serves as the basis for computing percentage limitations on certain itemized deductions such as medical expenses, charitable contributions, and certain casualty losses. Note: This problem is for the 2018 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 852 Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11 1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund 01. She is a tax accountant with Mesa The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2018 Description Wages, tips, other compensation Federal income tax withheld Social Security wages Social Security tax withheld Medicare wages and tips Medicare tax withheld Amount $65,000.00 10,500.00 65,000.00 4,030.00 65,000.00 942.50 Arizona 65,000.00 1,954.00 State wages, tips, etc. State income tax withheld During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099- eth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included s2,200 of tate income tax withheld by her employer ees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 to have the tax turns processed by a computerized tax return service On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share On September 12, 2018, Beth sold the stock for $14 a share Beth bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500 n January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. ng the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenditures in connection with her software development Cost of personal computer Cost of printer Furniture Supplies Fee paid to computer consultant Beth elected to expense the maximum portion of the cost of the computer, printer, and furnitur allowed under the provisions of S 179. These items were placed in service on January 15, 2018, and used 100% in her business Although her employer suggested that Beth attend a convention on current developments in corporat taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospita bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350 Beth paid estimated taxes of $1,000 3,000 Required: Compute the Beth R. Jordan's net tax payable or refund due for 2018 by providing the following information that would be reported on Form 1040, Schedules A, B, C, D, SE, Form 8949, and Form 4562 .Make realistic assumptions about any missing data. .If an amount box does not require an entry or the answer is zero, enter "O" Enter all amounts as positive numbers. Assume Beth's qualified dividends and long-term capital gains tax rate is 15%. It may be necessary to provide information regarding the other schedules and forms before completing the requested information for Form 1040 When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. . Provide the following that would be reported on the Beth Jordan's Form 1040 status: The taxpayer's filing status: culate taxable gross income. 0 3. Calculate the total deductions for AGI 4. Calculate adjusted gross income. 034 s. Calculate the greater of the standard deduction or itemized deductions s12, o0o 6. Calculate the deduction for qualified business income. 7. Calculate total taxable income. 8. Calculate the income tax liability. 9. Calculate the self-employment taxes due. l0, 500+947.50 +15 10. Calculate total withholding and tax payments. 11. Calculate the amount overpaid (refund) 12. Calculate the amount of taxes owed: Feedback The calculation of taxable income begins with gross income. Gross income includes all income, unless the tax law provides for a specific exclusion. Individual taxpayers have two categories of deductions: (1) deductions for adjusted gross income (deductions from gross income to arrive at adjusted gross income) and (2) deductions from adjusted gross income. As a general rule, personal expenditures are disallowed as deductions in arriving at taxable income. However, Congress allows specified personal expenses as deductions from AGI (commonly referred to as itemized deductions). AGI is an important subtotal that serves as the basis for computing percentage limitations on certain itemized deductions such as medical expenses, charitable contributions, and certain casualty losses