Please complete the 2018 federal income tax return for Carlos and Maria Gomez. If required information is missing, use reasonable assumptions to fill in the gaps.

Carlos and Maria Gomez live in Thibodaux, LA. The Gomezes have two children: Luis (age 14) and Amanda (age 12). Both children qualify as federal income tax dependents of Carlos and Maria. The Gomezes provided the following information:

Carloss social security number is 234-78-4321

Marias social security number is 432-34-5468

Luiss social security number is 589-24-8432

Amandas social security number is 599-74-8733

The Gomezs current mailing address is 1234 Canal Blvd, Thibodaux, LA 70301

Carlos start his own engineering firm called Gomez Professional Engineers (GPE) January 1, 2018. GPE is conducted as a sole proprietorship with Carlos being the sole owner. GPE is located at 1515 Canal Blvd, Thibodaux, LA 70301 (EIN 20-1616167). Maria is a seventh grade English teacher at the local middle school.

The following was reported on Marias Form W-2:

All applicable and appropriate payroll taxes were withheld by the employer.

Carlos reported the following information for GPEs business activities (GPE uses the cash method of accounting):

Employer

Gross Wages

Federal Income Tax Withholding

State Income Tax Withholding

Local Middle School

55,000

8,000

3,750

Revenues: Credit card receipts

Cash receipts Total revenue

Expenses: Advertising

Insurance-professional Office building rent Equipment leases Travel

Meals Entertainment Wages Taxes and licenses Employee health insurance Employee benefit programs

$352,000 648,000 $1,000,000

$5,450 15,750 62,000

6,050 14,200 2,975 4,000 498,725 44,875 42,000 14,500

Utilities Office supplies Legal and professional fees Repairs and maintenance

Total Expenses GPE purchased and placed in service the following fixed assets in 2016:

GPE does not want to claim any bonus depreciation or Section 179 expensing on any of these assets. Other Information

The Gomezes have the total net capital loss of $6,000 in 2018.

Assuming Gomezes total itemized deduction is $27,000 in 2018 and assume they dont have

any other income or expenses and no contribution to retirement account.

And assuming they are not qualified for any other credits other than child tax credits.

The entire family is covered under health insurance through Marias job.

The Gomezes made timely federal estimated tax payments for 2018 as follows:

37,425 18,900 15,550 10,000

$ 788,400

Item

Date Purchased

Amount

Laptop computers

March 1

$20,500

Printers

June 1

$6,500

Office furniture

September 10

$19,000

April 15, 2018 June 15, 2018 September 15, 2018 January 15, 2019

$11,000 $11,000 $11,000 $11,000

The Gomezes would like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.