Problem 48. Compute the net tax payable or refund due for Tim and Sarah for 2018. Please, Include all steps and if possible the name of the IRS forms necessary for each step.

imately $2. mately $3,500 of u daughter, which lowever, with as decided to her software res will remain at approx- that she has been qualified LU Jup the adoption will be finalized in 2019 and that she will incur approximately of adoption expenses. In addition, she expects to incur approximately s child and dependent care expenses relating to the care of her new daughter will enable her to keep her job at Mesa Manufacturing Company. Howeve the additional demands on her time because of her daughter, she has decirte discontinue her two part-time jobs (.e., the part-time tax practice and her soft business), and she will cease making estimated income tax payments. In computations, assume that all other income and expenditures will remain at an imately the same levels as in 2018. Use 2018 standard deduction amounts and Rate Schedules in your analysis. 48. Tim and Sarah Lawrence are married and file a joint return. Tim's Social Securi number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-45-6788, and Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive Tim has the following income and expenses from his business. Gross income $325,000 Business expenses 201,000 Records related to Sarah's employment provide the following information. Salary $145,000 Unreimbursed travel expenses (including $200 of meals) 1,600 Other pertinent information for the tax year includes the following. 3,800 Proceeds from sale of stock acquired on July 15, 2018 (cost of $12,000), and sold on August 1, 2018 $ 9,800 Proceeds from sale of stock acquired on September 18, 2017 (cost of $5,000), and sold on October 5, 2018 Wages paid to full-time domestic worker for housekeeping and child supervision 10,000 Interest income received 7,000 Total itemized deductions (not including any potential deductions above) 27,900 Federal income tax withheld Estimated payments of Federal income tax 20,000 Compute the net tax payable or refund due for Tim and Sarah Lawrence for 31,850 wrence for 2018 imately $2. mately $3,500 of u daughter, which lowever, with as decided to her software res will remain at approx- that she has been qualified LU Jup the adoption will be finalized in 2019 and that she will incur approximately of adoption expenses. In addition, she expects to incur approximately s child and dependent care expenses relating to the care of her new daughter will enable her to keep her job at Mesa Manufacturing Company. Howeve the additional demands on her time because of her daughter, she has decirte discontinue her two part-time jobs (.e., the part-time tax practice and her soft business), and she will cease making estimated income tax payments. In computations, assume that all other income and expenditures will remain at an imately the same levels as in 2018. Use 2018 standard deduction amounts and Rate Schedules in your analysis. 48. Tim and Sarah Lawrence are married and file a joint return. Tim's Social Securi number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-45-6788, and Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive Tim has the following income and expenses from his business. Gross income $325,000 Business expenses 201,000 Records related to Sarah's employment provide the following information. Salary $145,000 Unreimbursed travel expenses (including $200 of meals) 1,600 Other pertinent information for the tax year includes the following. 3,800 Proceeds from sale of stock acquired on July 15, 2018 (cost of $12,000), and sold on August 1, 2018 $ 9,800 Proceeds from sale of stock acquired on September 18, 2017 (cost of $5,000), and sold on October 5, 2018 Wages paid to full-time domestic worker for housekeeping and child supervision 10,000 Interest income received 7,000 Total itemized deductions (not including any potential deductions above) 27,900 Federal income tax withheld Estimated payments of Federal income tax 20,000 Compute the net tax payable or refund due for Tim and Sarah Lawrence for 31,850 wrence for 2018