Note: This problem is for the 2018 tax year. Paul E. Smith and Mary A. Crimp, each age 42, married on September 7, 2015. Paul and Mary will file a joint return for 2018. Paul's Social Security number is 111-11-1112. Mary's Social Security number is 123-45-6789, and she adopted "Smith" as her married name. They live at 201 Riverview Drive, Augusta, GA 30901. Paul was divorced from Sarah Smith in March 2016. Under the divorce agreement, Paul is to pay Sarah $1,000 per month for the next 8 years or until Sarah's death, whichever occurs first. Paul pays Sarah $12,000 in 2018. In addition, in January 2018, Paul pays Sarah $40,000, which is designated as being for her share of the marital property. Also, Paul is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Paul's salary for 2018 is $145,000, and his employer, Apple, Inc. (Federal I.D. No. 98-7654321), provides him with group term life insurance equal to three times his annual salary. His employer withheld $26,000 for Federal income taxes and $7,000 for state income taxes. The proper amounts were withheld for FICA taxes. Mary recently graduated from law school and is employed by Legal Liability, Inc. (Federal I.D. No. 11-1111111), as a prosecutor. She receives a salary of $50,000 in 2018. Her employer withheld $9,500 for Federal income taxes and $2,000 for state income taxes. The proper amounts were withheld for FICA taxes. Mary has $1,500 in qualified dividends on Mesa Corporation stock she inherited. Paul and Mary receive a $2,000 refund on their 2017 state income taxes. They itemized deductions on their 2017 Federal income tax return (total of $17,000). Paul and Mary pay $3,500 interest and $1,600 property taxes on their personal residence in 2018. Their charitable contributions total $10,400 (all to their church). They paid sales taxes of $1,500, for which they maintain the receipts. Both spouses had health insurance for all months of 2018 and want to contribute to the Presidential Election Campaign. Required: THIS RETURN IS FOR 2018 TAX LAWS IN EFFECT FOR 2018 WILL APPLY (THEREFORE, IT DOES REFLECT THE NEW TCJA of 2017) Compute the Smiths' net tax payable (or refund due) for 2018. Use Form 1040 and Schedule A, Schedule B and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. You are required to complete the 2018 Federal tax return using 2018 H&R Block Tax Software.