Please fill out a federal tax return for the following information.

Submit a Schedule A even if the standard deduction will be utilized.

Draft a cover letter to the client from you or your firm explaining the ultimate outcome and any items that were not deducted.

Timothy A. Moser (Tim) and Kathleen M. Moser (Kate) have been married since 2010. This is their general information:

Timothy A. Moser

SSN: 111-11-1111

DOB: 01/01/1985

Kathleen M. Moser

SSN: 222-22-2222

DOB: 05/01/1985

Address: 6 Cecile Dr., Millville, NJ 08332

They have two sons that live with them and they provide 100% of the support for:

Timothy A. Moser, Jr.

SSN: 333-33-3333

DOB: 04/10/2013

Bryce P Moser

SSN: 444-44-4444

DOB: 04/13/2014

Kate is a chemist for Pfizer, Inc. and her W-2 is attached. Kate contributed $6500 toward her employer-sponsored health insurance plan that covered the entire family. The contributions were made through an IRC Sec. 125 plan.

Tim is a self-employed engineer. His business information is also included in this package.

Tim and Kate own their home but there is a mortgage loan. The original loan balance was $235,000 and the remaining balance at the end of the year is $180,000. The entire mortgage was utilized to buy the home originally. During 2018, they paid $6974 in interest to Wells Fargo Bank.

The real estate taxes paid to the City of Millville were $7434.

The development that the home is located in has a homeowners association that maintains the storm drainage system and the monthly dues were $125 for all 12 months of 2018.

Tim and Kate attend St. Peter Roman Catholic Church were they contribute $75 each Sunday by check for a total of $3,900. They also made a voluntary contribution of $200 when a nephew was baptized on July 26, 2018

Kate paid mandatory union dues of $1200.

$1650 in doctor copays and $800 in prescription expenses were incurred and paid for the entire family combined. Tim and Kate did not keep a mileage log of their medical miles.

Tim and Kate earned $1850 as interest on municipal bonds that are held in an investment account at LPL Financial.

Tim and Kate earned $1950 as dividends in various securities held in an investment account at LPL Financial. Of this amount, $980 were qualified dividends.

Tim is self-employed as an engineer and uses the cash basis of accounting for tax reporting. His business is organized as a limited liability company called TM & Associates Engineering, LLC

He invoiced various clients $197,000 but only $173,000 was received in 2018.

On April 1, 2018, Tim paid Richard Marmom, CPA $1250 for the preparation of Tim & Kates 2017 income tax return. The check was written from the TM & Associates Engineering, LLC checking account and $675 of the fee was related to the preparation of TM & Associates Engineering, LLC business forms.

The business had advertising on the internet and in construction trade magazines that cost $28,000. All of these fees were paid in 2018.

The business spent a total of $15,647 on paper, ink, copier toner, and other miscellaneous office supplies.

The business rented surveying equipment for $10,000 plus $700 sales tax for a total of $10,700.

Tim travelled to an engineering convention in Orlando, FL. The convention included continuing education which is required for his license. The convention was Monday-Wednesday. He flew to Orlando on Friday and returned on Thursday. The expenses incurred are as follows:

1. Airfare: $650
2. Hotel: $900
3. Taxi to and from the airport in Orlando: $75
4. Meals: $300
5. Cost to attend conference (including continuing education): $1250

Tim (through the business) hired Dewey Cheatem & Howe, attorneys at law to review his contracts with clients. The total fees for the year were $1500.

There was a larger job and additional assistance was needed in reviewing the plans so the business engaged C&S Engineers to review the plans. The total fee paid was $2850.

The business exclusively used a 15 x 15 office in Tim and Kates 2400 square foot home. Tim elected to use the simplified safe harbor method for deducting home office expenses.

Tim used his 2015 F-150 pickup truck to meet with clients and for other business needs. The truck was driven a total of 15,473 miles during 2018 and 3,541 of those miles were for business purposes. Tim kept a meticulous mileage log. Kates car was also available for personal use. Tim uses the standard mileage rate for deducting the use of his truck. Tim also paid parking fees of $55 and Tolls of $50 during the business use of the truck.

Tim wrote a check in the amount of $400 from TM & Associates Engineering, LLC to Big Brothers/Big Sisters of Cumberland County on July 31, 2018. Big Brothers/Big Sisters is a 501(c)3 charity. Tim received a letter acknowledging the contribution and stating that no goods or services were received in exchange for the contribution.

Tim wrote a check in the amount of $1,000 from TM & Associates Engineering, LLC to Millville Little League Baseball on March 1, 2018. This organization is a 501(c)3 charity. In exchange for this contribution, TM & Associates Engineering, LLC receives a banner with the business name in the baseball field for the entire season. The fair market value is equal to the amount paid.

Tim contributed $5,000 to an IRA on March 1, 2019 and notified the IRA custodian that he wanted this contribution categorized as a 2018 contribution.

In order to thank three of his largest clients for their business, Tim (through the business) purchased fruit baskets for a total of $89.85 and gave them to the three clients in December 2018.

TM & Associates Engineering, LLC paid $850 to renew Tims NJ Professional Engineer license on June 30, 2018.

TM & Associates Engineering, LLC paid $750 for professional liability insurance on March 31, 2018.

On December 30, 2018, the business purchased a blueprint machine for $3,317 including tax. This machine was placed in service that day. Tim decided not to use any Section 179 deduction for this piece of equipment.

Tim decided to have the business elect out of bonus depreciation for all classes of assets placed in service during the year.

All other assets have been fully depreciated prior to the beginning of 2018.

Tim & Kate made federal estimated tax payments of $7500 each and NJ estimated tax payments of $1,000 each for 2018 on the following dates:

1. April 15, 2018
2. June 15, 2018
3. September 15, 2018
4. January 15, 2019

Tim & Kate had a balance due of $800 on their 2017 NJ income tax return which was paid on April 15, 2018.

Kate won $1200 playing Blackjack in Atlantic City. She also has documented gambling losses of $2800.

To allow both Tim & Kate to work, they incurred and paid $3500 in child care expenses. $2500 was for Timothy Jr. and $1000 was for Bryce. The total amount was paid to Child Family Center, 1100 Coombs Rd., Millville, NJ 08332 (EIN: 21-6000248).