Prepare an income tax return (with all appropriate forms and schedules) for the Smiths for 2018 following these guidelines:

Alice J. and Bruce M. Smith are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1111, respectively. Alice's birthday is September 21, 1968, and Bruce's is June 27, 1967. They live at 473 Pierre Avenue, Anytown, CA 91850. Alice is the office manager for Dowell Dental Clinic, 733 Some Street, Anytown, CA 91850 (employer identification number 12-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Mercury Corporation, 1247 University Avenue, Hauppauge, CA 11788 (employer identification number 11-1111111).

The following information is shown on their Wage and Tax Statements (Form W2) for 2018.

Line	Description	Alice	Bruce
1	Wages, tips, other compensation	$58,000	$62,100
2	Federal income tax withheld	4,500	6,300
3	Social Security wages	58,000	62,100
4	Social Security tax withheld	3,596	3,850
5	Medicare wages and tips	58,000	62,100
6	Medicare tax withheld	841	900
15	State	California	California
16	State wages, tips, etc.	58,000	62,100
17	State income tax withheld	2,950	3,100

The Smiths provide over half of the support of their two children, Cynthia (born January 25, 1993, Social Security number 123-45-6788) and John (born February 7, 1997, Social Security number 123-45-6786). Both children are full-time students and live with the Smiths except when they are away at college. Cynthia earned $4,200 from a summer internship in 2018, and John earned $3,800 from a part-time job.

During 2018, the Smiths provided 60% of the total support of Bruce's widower father, Sam Smith (born March 6, 1939, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam's life, received life insurance proceeds of $800,000 on December 28th.

The Smiths had the following expenses relating to their personal residence during 2018:

Property taxes	$5,000
Qualified interest on home mortgage	8,700
Repairs to roof	5,750
Utilities	4,100
Fire and theft insurance	1,900

The Smiths had the following medical expenses for 2018:

Medical insurance premiums	$4,500
Doctor bill for Sam incurred in 2017 and not paid until 2018	7,600
Operation for Sam	8,500
Prescription medicines for Sam	900
Hospital expenses for Sam	3,500
Reimbursement from insurance company, received in 2018	3,600

The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support.

Other relevant information follows:

When they filed their 2017 state return in 2018, the Smiths paid additional state income tax of $900.

During 2018, Alice and Bruce attended a dinner dance sponsored by the Anytown Police Disability Association (a qualified charitable organization). The Smiths paid $300 for the tickets. The cost of comparable entertainment would normally be $50.

The Smiths contributed $6,000 to Anytown Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition.

In 2018, the Smiths received interest income of $2,750, which was reported on a Form 1099INT from Third National Bank.

In December 2018, the Smiths dog knocked over a lit candle which caused damage to their living room. The Smiths paid a contractor $15,000 to make repairs but were not reimbursed for any of the damage by their insurance company.