Question: Please help me with this tax return. You may need the following forms and schedules to complete the project: Form 1040, Schedule 1,2,3,4 and 5,
Please help me with this tax return. You may need the following forms and schedules to complete the project: Form 1040, Schedule 1,2,3,4 and 5, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E-1, Form SE, Form 8663 and Form 8949. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms.
Facts: 1) Cal A. and Evann M. Malec are married and file a joint return 2018. Cal is selfemployed as a professional dog walker and Evann is a college science professor. Cal and Evann have three children. The oldest is Chase, who lives at home. Chase is a fulltime nursing student at the University of Nebraska and worked part-time during the year earning $1,500, which he spent for his own support. Cal and Evann provided $6,000 towards Chase support (including $4,000 for fall tuition). They also provided over half the support of their daughter, Alexis, who is a fulltime student at the University of Nebraska. Alexis lived at home until she was married in December of 2017. She filed a joint return with her husband, Darin, who earned $20,000 during the year. Becky is the youngest and lived with Cal and Evann for the entire year. The Malecs provide you with the following additional information: The Malecs do not want to contribute to the presidential election campaign The Malecs live at 6910 NW 3rd Street Lincoln, Nebraska 68521 Cals birthday is 8/15/1958 and his social security number is 444567777 Evann's birthday is 12/16/1961 and her social security number is 655778889 Chases birthday is 5/28/1998 and his social security number is 576202879 Alexiss birthday is 5/1/1997 and her social security number is 575292143 Beckys birthday is 5/15/2004 and his social security number is 643924685
2) The Malecs do not have a foreign bank account or trusts
3) Evann is a lecturer at the University of Nebraska in Lincoln, where she earned $60,000. The university withheld federal income tax of $6,425, state income tax of $2,550, Social Security tax of $3,720, and Medicare tax of $870. She also worked part-time for Spreetail. Spreetail paid her $10,000 in salary, and withheld federal income tax of $1,124, state income tax of $425, Social Security tax of $620, and a Medicare tax of $145.
4) The Malecs received $800 of interest from Wells Fargo on a joint account. They received $900 interest on the City of New York bonds they purchased in January with the proceeds from a loan from Union Bank. They paid interest of $1,100 on the loan. Cal received a dividend of $640 on Walmart, Inc. stock he owns. Evann received a dividend of $1,580 on Facebook, Inc. stock she owns. Cal and Evann received a dividend of $865 on jointly owned stock in Target, Inc. All of these dividends are qualified dividends.
5) Evann's mother, Joseline, died on July 1, 2011, leaving Evann her entire estate. Included in the estate was Joselines residence (515 Goodwill, Lincoln, NE 68508). Joselines basis in the residence was $50,000. The fair market value of the residence on July 1, 2011, was $160,000. The property was distributed from the estate to Evann on January 1, 2012.
6) The Malecs have qualified educational loan interest expense of $2,800 in 2018.
7) The Malecs filed their 2017 federal and state tax returns on April 13, 2018. They paid the following additional 2017 taxes with their returns: Federal income taxes of $680 and state income taxes of $330.
8) The Malecs made timely estimated federal income tax payments of $1,600 each quarter during 2018. They also made estimated state income taxes of $470 each quarter. The Malecs made the federal and state fourth quarter estimated tax payments on December 31, 2018. They would like to receive a refund for any 2018 overpayment of tax.
9) Evann received a 2018 K1 from the McBride Partnership interest she purchased two years ago. Evann materially participates in the partnership. A copy of the K1 is below:
10) The Malecs had the following activity in their brokerage account during the year (all transactions were reported on Form 1099B. Basic information on each stock sale was reported to the IRS): Sold 75 shares of Apple, Inc 4/15/18 $28,750 Sold 350 shares of Cooper Tire 10/14/18 $14,700 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 200 shares of Apple, Inc on 3/8/15 for 90,000 Purchased 300 shares of Cooper Tire on 1/12/14 for 19,000 Purchased 50 shares of Cooper Tire on 6/28/18 for 2,000 The Malecs have a $5,000 longterm capital loss carryover from the prior tax year.
11) Cal and Evann have also provided the following information for 2018:
Prescription medicine and drugs (net of insurance reimbursement) $376
Doctor and hospital bills (net of insurance reimbursement) $2,468
A penalty for underpayment of last years state income tax $15
Real estate taxes on personal residence $4,762
Interest on a home mortgage (paid to First State Bank).The amount of the loan acquisition debt is $400,000: $8,250
Interest on credit cards (vacation and consumer purchases) $595
Cash contribution to First Star Church $3,080
Payroll deductions for Evan's contributions to United Way $150
Professional dues (Evann) $325
Professional subscriptions (Evann) $245
Fee for preparation of 2017 tax return paid on April 12, 2018, $500
Home Tools Tax Return 1 Assi... McBride 2018 K-... d Share b51118 Schodulo K- Form 1065 2018 Part Ill Deductions, Credits, and Other Items 1,450 Partner's Share of Income, Deductions Credlts, etc Information About the 25-7700991 ust 18 432 Budding Sreet Springview, NE 68778 Ogion UT E Pactars 655-77-8889 Evann M. Maloc 6910 NW 3rd Strect Lincor, NE 60521 400 80 2000 A 1.450 for edcitienel info 6.004 I> Schedale K-1 Fom 105) 2318 Home Tools Tax Return 1 Assi... McBride 2018 K-... d Share b51118 Schodulo K- Form 1065 2018 Part Ill Deductions, Credits, and Other Items 1,450 Partner's Share of Income, Deductions Credlts, etc Information About the 25-7700991 ust 18 432 Budding Sreet Springview, NE 68778 Ogion UT E Pactars 655-77-8889 Evann M. Maloc 6910 NW 3rd Strect Lincor, NE 60521 400 80 2000 A 1.450 for edcitienel info 6.004 I> Schedale K-1 Fom 105) 2318
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
