Please complete the required 2018 federal individual income tax return for the following taxpayer, using the 2018 tax forms

You will need to complete Form 1040, pages 1 and 2 as well as any related numbered Schedules, and Schedule C (first page only). If you conclude that the taxpayer should itemize deductions, then also complete Schedule A, Itemized Deductions. Ignore alternative minimum tax calculations. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. Also ignore any tax credits. If required information is missing, use reasonable assumptions to fill in the gaps.

Also:

• Please round all tax return entries to the nearest dollar.
• Please use the tax rate schedule at the back of your text to calculate any tax liability.
• AGI should equal $56,027, and total tax on line 15 of Form 1040 should equal $4,561.

Jane Kirk, age 49, lives in Any Town, Missouri. Janes father, Leonard Spock, lives in his own home near his daughters home. Leonards gross income for the year is $3,000, and Jane provided more than half of his support for the year.

The following information relates to Janes tax year:

• Janes Social Security number is XXX-45-1234.
• Leonards Social Security number is XXX-37-4893.
• Janes mailing address is 123 Bear Drive, Any Town, Missouri 65897.

Jane Kirk received the following Form W-2 with information regarding her wages during the year:

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

Jane also designs and creates sewing patterns for clothes, and she sells her designs to other companies that print and sell the patterns. For tax year 2018 Jane had the following income and expenses related to her sole proprietorship:

• Sales revenue (see Forms 1099 below) $3,000
• Drafting supplies $500
• Office supplies $200
• Jane will owe $325 in self-employment tax, of which, $163 is the employer portion.
• Jane uses the cash method of accounting, and she materially participated in this business.

  Jane Kirk also received the following during the year:

• Interest income from Missouri State Bank $90
• Interest income from City of Any Town, MO Bond $350
• Interest income from U.S. Treasury Bond $700
• Workers compensation $4,250
• Disability payments received on account of injury $3,600
  • ABC Sewing Machines paid 100% of the premiums on the policy and included the premium payments in Janes taxable wages.
• Gambling winnings $100
• Receipt of payment as a result of a lawsuit for damages sustained in a car accident:
  • Medical Expenses $3,000
  • Emotional Distress $10,500
  • Punitive Damages $11,000
  • Total $24,500

    Jane did not own, control or manage any foreign bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year.

    Jane Kirk paid the following expenses during the year:

  • Dentist/Orthodontist (unreimbursed by insurance) $1,550

    Doctors (unreimbursed by insurance) $ 675

    Prescriptions (unreimbursed by insurance) $ 390

    Real property tax on residence $1,200

    Vehicle (personal) property tax based upon value of cars $ 400

    Mortgage interest on principal residence $5,000

    Contribution to Red Cross $ 500

    Contribution to state senator re-election campaign $ 600

    Contribution to First Methodist Church of Any Town $4,000

    Contribution to financially struggling neighbor $ 250

    Jane also paid $2,600 in student loan interest during the year on a qualified education loan.

    Jane drove 500 miles in total to receive medical treatment at a hospital in March.

    Jane would like to contribute the maximum deductible contribution to her IRA account. She does not participate in an employer sponsored retirement plan.

    Jane wants to contribute to the Presidential Election Campaign. She would like to receive a refund (if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check.

    Everyone listed on the tax return had health care insurance coverage for all of 2018.

a Employee's social security number XXX-45-1234+ OMB No. 1545-0008 Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld $50,000.00 $50,000.00 $50,000.00v $6,000.00 $3,100.00- $725.00 Employer's name, address, and 2iP code 3 Social security wages 4 Social security tax withheld ABC Sewing Machines- 555 University Ave. ' Any Town, MO 65897- 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips Control number 9 Verification code 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a Jane Kirk utory employee plan party 12b rement sick pay 123 Bear Drive 14 Other 12c Any Town, MO 65897- 12d f Employee's address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name $50,000.00 $3,000.00 Wage and Tax Statement 2018 Department of the Treasury Internal Revenue Service Form J VOID 1 Rents OMB No. 1545-0115 PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Miscellaneous Income MacGruder Pattern Company 444 Dressmaker Way Any Town, New York* 2018 2 Royalties Form 1099-MISC 4 Federal income tax withheld 3 Other income Copy 1 For State Tax Department PAYER'S TIN RECIPIENT'S TIN 5 Fishing boat proceeds 6 Medical and health care payments XXX-45-1234 RECIPIENT'S name 7 Nonemployee compensation 8 Substitute payments in lieu dividends or interest Jane Kirk $1,700.00 Street address (including apt. no.) 123 Bear Drive 9 Payer made direct sales of 10 Crop insurance proceeds $5,000 or more of consumer products to a buyer City or town, state or province, country, and ZIP or foreign postal code t) for resale Any Town, Missouri 65897+ 12 Account number (see instructions) FATCA filing 13 Excess golden parachute 14 Gross proceeds paid to an 15a Section 409A deferrals 15b Section 409A income 16 State tax withheld 17 State/Payer's state no. 18 State income , Form 1099-MISC www.irs.gov/Form1099MISC Department of the Treasury - Internal Revenue Service a Employee's social security number XXX-45-1234+ OMB No. 1545-0008 Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld $50,000.00 $50,000.00 $50,000.00v $6,000.00 $3,100.00- $725.00 Employer's name, address, and 2iP code 3 Social security wages 4 Social security tax withheld ABC Sewing Machines- 555 University Ave. ' Any Town, MO 65897- 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips Control number 9 Verification code 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a Jane Kirk utory employee plan party 12b rement sick pay 123 Bear Drive 14 Other 12c Any Town, MO 65897- 12d f Employee's address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name $50,000.00 $3,000.00 Wage and Tax Statement 2018 Department of the Treasury Internal Revenue Service Form J VOID 1 Rents OMB No. 1545-0115 PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Miscellaneous Income MacGruder Pattern Company 444 Dressmaker Way Any Town, New York* 2018 2 Royalties Form 1099-MISC 4 Federal income tax withheld 3 Other income Copy 1 For State Tax Department PAYER'S TIN RECIPIENT'S TIN 5 Fishing boat proceeds 6 Medical and health care payments XXX-45-1234 RECIPIENT'S name 7 Nonemployee compensation 8 Substitute payments in lieu dividends or interest Jane Kirk $1,700.00 Street address (including apt. no.) 123 Bear Drive 9 Payer made direct sales of 10 Crop insurance proceeds $5,000 or more of consumer products to a buyer City or town, state or province, country, and ZIP or foreign postal code t) for resale Any Town, Missouri 65897+ 12 Account number (see instructions) FATCA filing 13 Excess golden parachute 14 Gross proceeds paid to an 15a Section 409A deferrals 15b Section 409A income 16 State tax withheld 17 State/Payer's state no. 18 State income , Form 1099-MISC www.irs.gov/Form1099MISC Department of the Treasury - Internal Revenue Service