Question
Please help me complete the 2019 federal income tax return for Katie Hamblin. Please include steps so I would be able to learn it! Thank
Please help me complete the 2019 federal income tax return for Katie Hamblin. Please include steps so I would be able to learn it! Thank you
Be sure to include only required tax forms when completing the tax return. For purposes of this assignment, unless instructed otherwise, you do not need to attach Form 8582. Also, ignore the requirement to attach the Form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps.
Katie Hamblin and her now ex-husband Chris were legally divorced on March 1, 2018. As of the end of the year, Katie was unmarried. Katie and Chris had only one child, an 11-year-old girl named Felicity. As part of the divorce decree, Katie was given custody of Felicity and Chris was required to pay 1) child support for Felicitys care, and 2) alimony to Katie until she remarries or dies. Because Chris will be making child support payments, the divorce decree provided that Chris will be permitted to claim the tax dependency exemption for Felicity until Felicity no longer qualifies as a tax dependent of either parent and the decree obligates Katie to sign and/or file any required forms to cause this result to occur.
Katie rents a home (separate from Chris) that she pays for herself. Felicity lives with Katie most of the time, but she visits and stays with her father every other weekend and most holidays. During the year, Felicity stayed at Chriss house a total of 74 nights.
Katie provided the following information for 2018:
Katies Social Security number is 292-96-1987
Felicitys Social Security number is 664-54-8741
Katies mailing address is 245 Riverside Rd., Sheboygan, Wisconsin 53081
Felicity is a U.S. citizen
The following was reported on Katies Form W-2:
Employer | Gross Wages | Federal Income Tax Withholding | State Income Tax Withholding |
Central Wisconsin Heating and Air | 64967 | 13145 | 4019 |
All applicable and appropriate payroll taxes were withheld by the employer.
During the year, Katie also received the following:
Child Support Payment from Chris Hamblin $12,000
Alimony Payment from Chris Hamblin $16,000
Gift from her father to help with legal bills $ 8,500
Interest income on U.S. Treasury Bond $ 400
Interest income of Madison City Bond (municipal bond) $ 250
Interest income from First Bank of Madison $ 165
Life insurance proceeds on the death of her mother $45,000
Katie is a 50% owner in a friends company, Cloudy Day Flowers, Inc. Cloudy Day Flowers, Inc. (CDF) is a Subchapter S corporation. The company reported ordinary business income for the year of $12504. Katie acquired the stock several years ago. Katie worked a total of 600 hours at the CDF shop in the evenings and on the weekends during 2018. Cloudy Day Flowers, Inc.s employer identification number is 54-1708974
Katie entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Wholesome. The value of the tickets was $200 each. Katie took her friends from work to the production.
Katie lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1227 in unemployment benefits during the year. She is currently looking for another job.
Katie had qualifying minimum health insurance coverage provided to her because of her employment with Central Wisconsin Heating and Air for each month in 2018 (the employer continued to cover her through the end of the year). Felicity had qualifying minimum health insurance coverage provided through Chris through his work.
Katie 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.
Katie was provided with the following benefits as part of her employment:
Group-term life insurance coverage of $50,000. The cost to cover Katie for the company for the tax year is $150.
Access to the company photocopy machine. Katie estimates she made $14 worth of copies during the year primarily for use with her church group activities.
Katie reported no itemized deductions other than any described above.
Katie does not want to contribute to the Presidential Election Campaign Fund. 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.
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