Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please completed 2018 Form 1040 for Anna Love, including any required Schedules. Include a page that details any assumptions you need to make to complete

Please completed 2018 Form 1040 for Anna Love, including any required Schedules. Include a page that details any assumptions you need to make to complete the return and the calculations required. Form 8863 is not required. Included a details any assumption that you need to make t complete the return and the calculations required.

Anna Love is a tax preparer who earned a salary of $68,000 in 2018. She is 43 years old and is divorced. She received alimony of $1,500 from her former husband, Ken Love. Anna's Social Security number is 998-55-4444. Ken's is 998-88-3333.

Anna and her daughter Sophia (birthdate April, 28 2000, Social Security number 888-55-2222) moved to lowa in January of this year. Anna provides more than one half of Sophia's support. They had been living in California, but Anna has always wanted to move to lowa, where her family is located. Luckily, last December (2017), a CPA position opened at a regional firm in Cedar Rapids and Anna and Sophia decided to make the move so that Anna could start work before the 2018 busy season started. They started their move on January 5, 2018. The move was expensive; it cost Anna $5,550 after all the costs were tallied up. Anna's mother was so excited to have her daughter and granddaughter move back to lowa that she gave Anna $2,000 to help out with the moving costs.

Anna rented a home in California but decided to buy a home in Cedar Rapids. She found the perfect house at 311 Main Street, Cedar Rapids, IA 52227. Sophia completed high school in spring of 2018 she started attending school full-time at Coe College in the fall. Sophia decided to continue living at home with her mom. She was awarded a $5,000 partial tuition scholarship this year, and Anna helped by paying the remaining $1,000 tuition cost.

With all the tax law changes, Anna wasn't sure if she would benefit from itemizing deductions on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Anna paid $4,900 in state income taxes, $5,199 in real estate taxes and $6,500 in charitable contributions during the year through payroll deduction. She paid mortgage interest of $10,000 on a principal amount of $200,000, reported to her on a 1098. She also paid the following medical-related expenses for her and Sophia:

Insurance premiums $3,500

Medical care expenses $1,300

Prescription medicine $450

Nonprescription medicine $200

New contact lenses for Sophia $100

After busy season ended, Anna got distracted while driving and she ran into a street sign. The accident caused some damage to the car and gave her severe whiplash. Anna wasn't able to work for two weeks after the accident. Fortunately, she received $3,000 from her disability insurance. Her employer, Pearson and Associates, provided the policy, paying 75% of the premiums on the policy as a nontaxable fringe benefit with Anna paying the remaining 25% portion as a deduction from her paycheck.

In 2013, Anna acquired several investments with a portion of the divorce settlement. This year, her income from her investments included $3,200 of interest income from corporate bonds and $500 interest income from Los Angeles municipal bonds. Overall, Anna's stock portfolio appreciated by $13,000 in 2018 but she did not sell any of her stocks.

Anna had $9,000 of federal income taxes withheld by her employer. Anna did not make any estimated payments. She does not want $3 to go to the Presidential Campaign Fund and she wants any refund to be sent to her in a paper check, not direct deposited. If she owes, she will mail a check to the IRS.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Human Resource Management

Authors: Raymond Noe

5th Edition

0471737933, 9780471737933

More Books

Students also viewed these Accounting questions

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago