Note: This problem is for the 2018 tax year. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2018. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax. Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason's support during 2018. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2018, she has decided not to do so, Roberta provides all of June's support. Roberta's mother died on January 7, 2018. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother's life insurance policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Roberta's favorite aunt gave her $13,000 for her birthday in October On November 8, 2018, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2012. Walt's cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2014. On December 1, 2016, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2014, for $8,000, An examination of Roberta's records reveals that she received the following: Interest income of $2,500 from First Savings Bank. Groceries valued at $750 from Kroger Groceries for being the 100,000th customer . . . Groceries valued at $750 from Kroger Groceries for being the 100,000th customer Qualified dividend income of $1,800 from Amber. Interest income of $3,750 on City of Springfield school bonds. - Alimony of $16,000 from Wayne; divorce finalized in 2015. Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W-2 wage limitation does not. From her checkbook records, she determines that she made the following payments during 2018: Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained). Paid $5,000 to ECM Hospital for the medical expenses of a friend from work. Mortgage interest on her residence of $7,800 to Peoples Bank. Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence. Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000. Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses. She had full-year health care coverage. A $1,000 ticket for parking in a handicapped space. Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket. . Contribution of $250 to the campaign of a candidate for governor. Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994. Required: calculate Roberta's net tax payable or refund due for 2018. Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount box does not require an entry or the answer is zero, enter "0". Make realistic assumptions about any missing data. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar . . . Before you begin: See the earlier instructions for line 11a to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1010 through line 10. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box o line 13 of Schedule 1. 1. 75,650 X 1. Enter the amount from Form 1040, line 10. However, if you are filing Form 2555 or 2555- EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Eamed Income Tax Worksheet (Taxable income) 2. Enter the amount from Form 1040, line 3a* 2. 1,800 3. Are you filing Schedule D?" Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, entero 3,500 Yes 3. No Enter the amount from Schedule 1, line 13 ... 4. 4. Add lines 2 and 3 5,300 0 5. 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 40 of that form. Otherwise, enter -0..... 6. Subtract line 5 from line 4. If zero or less, enter.o. 6. 0 X 7. 7. Subtract line 6 from line 1. If zero or less, enter -0. $77,200 if married filing jointly or qualifying widow(er), 8. 51,700 $51,700 if head of household. 9. Enter the smaller of line 1 or line 8 9. 10. 10. Enter the smaller of line 7 or line 9 11. Subtract line 10 from line 9. This amount is taxed at 0%. . 11. 0 12. Enter the smaller of line 1 or line 6 12. 13. 13. Enter the amount from line 11 0 14. 14. Subtract line 13 from line 12 15. Enter: $425,800 if single, $239,500 if married filing separately, 15. $479,000 if married filing jointly or qualifying widow(er), $452,400 if head of household. 16. Enter the smaller of line 1 or line 15 16. 17. 17. Add lines 7 and 11 18. 18. Subtract line 17 from line 16. If zero or less, enter- 16. Enter the smaller of line 1 or line 15 16. 17. Add lines 7 and 11 17. 18. Subtract line 17 from line 16. If zero or less, enter -0- 18. 19. Enter the smaller of line 14 or line 18 19. 20. Multiply line 19 by 15% (0.15). ... 20. 21. Add lines 11 and 19. 21. 22. Subtract line 21 from line 12 ....... 22. 23. 0 24. HR 25. X 23. Multiply line 22 by 20% (0.20). 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet. 25. Add lines 20, 23, and 24 . 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet........... 27. Tax on all taxable income. Enter the smaller of line 25 or line 26. Also include this amount on the entry space on Form 1040, line 11a. If you are filing Form 2555 or 2555-Ez, do not enter this amount on Form 1040, line 1ta. 27. Instead, enter it on line 4 of the Foreign Eamed Income Tax Worksheet....... * If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 26. (e) (a) (c) (d) (b) Description of property Date acquired Date sold or Proceeds (sales (Example: 100 sh.XYZ disposed of price) (see Co.) (Mo., day, yr.) (Mo., day, yr.) Instructions) Cost or other basis. See the Note below and see Column (e) in the separate Instructions Adjustment, if any, to gain or (h) loss. If you enter an amount in Gain or (loss). column (a), enter a code in Subtract column (f). See the separate column (e) instructions. from column (d) and (1) (0) combine the Code(s) from Amount of result with instructions adjustment column (9) AMBER STOCK 12/05/12 11/08/18 24,000 X 22,000 X 2,000 X 2,000 X FALCON STOCK 07/02/14 12/01/18 5,500 x 2,000 x 3,500 X 3,500 X Note: This problem is for the 2018 tax year. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2018. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax. Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason's support during 2018. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2018, she has decided not to do so, Roberta provides all of June's support. Roberta's mother died on January 7, 2018. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother's life insurance policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Roberta's favorite aunt gave her $13,000 for her birthday in October On November 8, 2018, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2012. Walt's cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2014. On December 1, 2016, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2014, for $8,000, An examination of Roberta's records reveals that she received the following: Interest income of $2,500 from First Savings Bank. Groceries valued at $750 from Kroger Groceries for being the 100,000th customer . . . Groceries valued at $750 from Kroger Groceries for being the 100,000th customer Qualified dividend income of $1,800 from Amber. Interest income of $3,750 on City of Springfield school bonds. - Alimony of $16,000 from Wayne; divorce finalized in 2015. Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W-2 wage limitation does not. From her checkbook records, she determines that she made the following payments during 2018: Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained). Paid $5,000 to ECM Hospital for the medical expenses of a friend from work. Mortgage interest on her residence of $7,800 to Peoples Bank. Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence. Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000. Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses. She had full-year health care coverage. A $1,000 ticket for parking in a handicapped space. Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket. . Contribution of $250 to the campaign of a candidate for governor. Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994. Required: calculate Roberta's net tax payable or refund due for 2018. Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount box does not require an entry or the answer is zero, enter "0". Make realistic assumptions about any missing data. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar . . . Before you begin: See the earlier instructions for line 11a to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1010 through line 10. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box o line 13 of Schedule 1. 1. 75,650 X 1. Enter the amount from Form 1040, line 10. However, if you are filing Form 2555 or 2555- EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Eamed Income Tax Worksheet (Taxable income) 2. Enter the amount from Form 1040, line 3a* 2. 1,800 3. Are you filing Schedule D?" Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, entero 3,500 Yes 3. No Enter the amount from Schedule 1, line 13 ... 4. 4. Add lines 2 and 3 5,300 0 5. 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 40 of that form. Otherwise, enter -0..... 6. Subtract line 5 from line 4. If zero or less, enter.o. 6. 0 X 7. 7. Subtract line 6 from line 1. If zero or less, enter -0. $77,200 if married filing jointly or qualifying widow(er), 8. 51,700 $51,700 if head of household. 9. Enter the smaller of line 1 or line 8 9. 10. 10. Enter the smaller of line 7 or line 9 11. Subtract line 10 from line 9. This amount is taxed at 0%. . 11. 0 12. Enter the smaller of line 1 or line 6 12. 13. 13. Enter the amount from line 11 0 14. 14. Subtract line 13 from line 12 15. Enter: $425,800 if single, $239,500 if married filing separately, 15. $479,000 if married filing jointly or qualifying widow(er), $452,400 if head of household. 16. Enter the smaller of line 1 or line 15 16. 17. 17. Add lines 7 and 11 18. 18. Subtract line 17 from line 16. If zero or less, enter- 16. Enter the smaller of line 1 or line 15 16. 17. Add lines 7 and 11 17. 18. Subtract line 17 from line 16. If zero or less, enter -0- 18. 19. Enter the smaller of line 14 or line 18 19. 20. Multiply line 19 by 15% (0.15). ... 20. 21. Add lines 11 and 19. 21. 22. Subtract line 21 from line 12 ....... 22. 23. 0 24. HR 25. X 23. Multiply line 22 by 20% (0.20). 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet. 25. Add lines 20, 23, and 24 . 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet........... 27. Tax on all taxable income. Enter the smaller of line 25 or line 26. Also include this amount on the entry space on Form 1040, line 11a. If you are filing Form 2555 or 2555-Ez, do not enter this amount on Form 1040, line 1ta. 27. Instead, enter it on line 4 of the Foreign Eamed Income Tax Worksheet....... * If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 26. (e) (a) (c) (d) (b) Description of property Date acquired Date sold or Proceeds (sales (Example: 100 sh.XYZ disposed of price) (see Co.) (Mo., day, yr.) (Mo., day, yr.) Instructions) Cost or other basis. See the Note below and see Column (e) in the separate Instructions Adjustment, if any, to gain or (h) loss. If you enter an amount in Gain or (loss). column (a), enter a code in Subtract column (f). See the separate column (e) instructions. from column (d) and (1) (0) combine the Code(s) from Amount of result with instructions adjustment column (9) AMBER STOCK 12/05/12 11/08/18 24,000 X 22,000 X 2,000 X 2,000 X FALCON STOCK 07/02/14 12/01/18 5,500 x 2,000 x 3,500 X 3,500 X