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Please complete and explain Form 1040 for 2018 only a blank copy is attached. Thanks so much!!! especially, please explain 9 Qualified business income deductions

Please complete and explain Form 1040 for 2018 only a blank copy is attached. Thanks so much!!!

especially, please explain 9 Qualified business income deductions and 14 Other taxes from Form 1040.

Jenny Walters is a marketing assistant and earned $38,000 in 2018. She is 42 years old and has been divorced for five years. Jenny will claim head of household for 2018. She has a daughter, Julia, who is 20 years old. Julia is a full-time student. Here are some more tax facts:

  1. Jenny's SSN is 123-34-4567 and Julia's is 654-32-1234.
  2. Jenny's address is 100 N. Main St., Atlanta, GA 30301.
  3. Jenny receives $1,200 per month in alimony from her ex-husband.
  4. Jenny owns a rental property with the following financial data:
  1. Rental Revenue - $50,000
  2. Expenses:

Insurance - $5,000

Repairs - $10,500

Depreciation - $4,000

  1. Jenny has interest income from corporate bonds of $2,200 and interest from municipal bonds of $1,000.
  2. Jenny also paid the following expenses: State income taxes of $5,800, charitable contributions of $12,500, and medical expenses of $5,795 for insurance premiums; $1,100 for medical care expenses; $350 for prescription medicine; $100 for nonprescription medicine; and $200 for new contact lenses for Julia.
  3. Jenny received disability insurance payments of $1,200.
  4. Jenny runs a small business from her home giving piano lessons to kids on weekends. She had the following transactions from it: total revenue $10,000; office supplies $500; teaching materials and supplies $1050; concerts and field shows $1500; repairs and maintenance of pianos $950; wages to a teaching assistant $1000; payroll taxes $765; business insurance $420; occupational taxes and license $160.

image text in transcribed

Page 2 1 2b 3b 4b 5b 6 7 8 9 10 11 12 Form 1040 (2018) 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 3a Qualified dividends. b Ordinary dividends Form(s) W-2G and 4a IRAs, pensions, and annuities. 4a , 1099-R if tax was b Taxable amount b 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 -- Married filing jointly or Qualifying 11 a Tax (see inst.) a ( (check if any from: 1 Form(s) 8814 2 Form 4972 2 3 0 widow(er), b b Add any amount from Schedule 2 and check here $24,000 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 Other taxes. Attach Schedule 4. any box under Standard Total tax. Add lines 13 and 14. deduction, 16 Federal income tax withheld from Forms W-2 and 1099 see instructions. 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 Refund 19 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. 13 114 14 115 15 16 17 18 19 20a 22 Form 1040 (2018)

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