Please complete the required federal individual income tax return forms for the following taxpayer. Skip the tax credits part for this project. You may stop after completing Line 11 on Form 1040. Sarah Hamblin is your client. Sarah and her now ex-husband Kevin were legally divorced on March 1 of 2018 for which you are completing the tax return. As of the end of 2018, Sarah was not married. Sarah and Kevin had only child an 11 year old girl named Elizabeth. As part of the divorce decree, Sarah was given custody of Elizabeth and Kevin was required to pay child support for Elizabeth's care as well as alimony to Sarah until she remarries or dies. Because Kevin would be making child support payments, the divorce decree provided that Kevin would be permitted to claim Elizabeth as a dependent on his tax return until Elizabeth no longer qualifies as a tax dependent of her parents and the decree obligates Sarah to sign and/or file any required forms to cause this result to occur. Sarah rents a home (separate from Kevin) that she pays for herself. Elizabeth lives with Sarah most of the time but she visits and stays with her father every other weekend and most holidays. During the year, Elizabeth stayed at Kevin's house a total of 74 nights. The following information relates to Sarah's tax year: Sarah's social security number is 123-43-4321 Elizabeth's social security number is 123-34-1234 Sarah's mailing address is 1245 Rose Petal Drive, Madison, Wisconsin 53562 Elizabeth is a U.S.citizen Sarah Hamblin received the following income during the year: Company Gross Wages Federal Income Tax Withholding 10,250 State Income Tax Withholding 2,825 Central Wisconsin Heating and Air 56,350 All applicable and appropriate payroll taxes were withheld by the employer. During the year, Sarah also received the following: Child Support Payment from Kevin Hamblin Alimony Payment from Kevin Hamblin Gift from her father to help with legal bills Interest income on U.S. Treasury Bond Interest income of Madison City Bond (municipal) Interest income from First Bank of Madison Life insurance proceeds on the death of her mother $12,000 $16,000 $ 8,500 $ 400 $ 250 $ 165 $ 45,000 Sarah won 10 tickets through a radio contest to the touring broadway-style production of Wholesome. The value of the tickets was $200 each. Sarah took her friends from work to the production. Sarah lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1,250 in unemployment benefits. She is currently looking for another job. Sarah 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. Through work Sarah was provided with certain benefits as part of her employment: Group-term life insurance coverage of $50,000. Cost to cover Sarah for the company for the tax year is $150. Access to the company photocopy machine. Sarah estimates she made $40 worth of copies during the year primarily for use with her church group activities. Service Department of the Treasury - Internal Revenue Service (99) To (99) U.S. Individual Income Tax Return Filing status: Single Married filing jointly Married filing separately Your first name and initial Last name o l OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Head of household Qualifying widow(er) Your social security number you were born before January 2, 1954 Your standard deduction: Someone can claim you as a dependent If joint return, spouse's first name and initial Last name You are blind Spouse's social security number Spouse standard deduction: Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 Spouse is blind Spouse itemizes on a separate return or you were dual-status alien Home address (number and street). If you have a P.O.box, see instructions. Apt. no. Full-year health care coverage or exempt (see inst.) Presidential Election Campaign (see inst.) You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. If more than four dependents, see inst. and here Dependents (see instructions): (1) First name (2) Social security number (3) Relationship to you (4) Vit qualifies for (see inst.): Child tax credit Credit for other dependents Last name Sign Date Under penalties of perjury, I declare that I have examined this retum and accompanying schedules and statements, and to the best of my knowledge and belief, they are true. correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Your occupation If the IRS sent you an identity Protection Joint return? PIN, enter it See instructions here (see inst.) Keep a copy for Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an identity Protection your records. PIN, enter it here (see inst.) Preparer's name Preparer's signature PTIN Firm's EIN Check if: Paid 3rd Party Designee Preparer Firm's name Phone no. Self-employed Use Only Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2018) Page 2 2a 4a 6 10 12 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form(s) W-2. . . . . . 2a Tax-exempt interest . . . b Taxable interest . . . Attach Forms) W-2. Also attach 3a Qualified dividends. . . 3a b Ordinary dividends . . Form(s) W-2G and 4a IRAs, pensions, and annuities. b Taxable amount . . 1099-R if tax was . withheld. 5a Social security benefits . . b Taxable amount . . . Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6 Standard . . . . . . . . . . . . . . . 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 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- . Married filing jointly or Qualifying 11 a Tax (see inst.) (check if any from: 1 Form(s) 8814 2 Form 4972 30 widow(er). b Add any amount from Schedule 2 and check here $24,000 Head of a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here household $18,000 Subtract line 12 from line 11. If zero or less, enter-O- . . . . . . . . . . . . . If you checked Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . any box under Standard 15 Total tax. Add lines 13 and 14 . . . . . . . . . . . . . . . . . . . deduction, Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . see instructions. 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? b Routing number 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 14 16 17 22 Form 1040 (2018) SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income OMB No. 1545-0074 2018 Attachment Sequence No. 01 Your social security number Attach to Form 1040. Go to www.irs.gov/Form 1040 for instructions and the latest information. Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 1-9b 10 13 14 15b 17 18 19 20b . . | 23 Additional 1-9b Reserved.. ...... Income 10 Taxable refunds, credits, or offsets of state and local income taxes... . 11 Alimony received . . . . . . . . . . . . . . . . . . . . . . 12 Business income or (loss). Attach Schedule C or C-EZ ........ 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here 14 Other gains or losses). Attach Form 4797 .............. 15a Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Reserved . . . . . . . . . . . . . . . . . . . . . . . . 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or (loss). Attach Schedule F .............. 19 Unemployment compensation ................. 20a Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23. . Adjustments 23 Educator expenses. . . . . . . . . to Income Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . Health savings account deduction. Attach Form 8889. 26 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans.. 28 29 Self-employed health insurance deduction .... 30 Penalty on early withdrawal of savings.. 31a Alimony paid b Recipient's SSN 32 IRA deduction . . . . . . . . . . . . . . 33 Student loan interest deduction . . . . . 34 Reserved . . . . . . . . . . . . . . 35 Reserved . . . . . . . . . . . . . 35 36 Add lines 23 through 35 . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F 24 26 29 30 33 36 Schedule 1 (Form 1040) 2018