Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2019 - To the friendly student tax preparer: Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady, Jr. The judge owed me a few favors and I really love the kid. He lives with me full-time and my wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess. I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8). Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year (and have receipt documentation for all contributions). I'm such a nice guy! gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Tums out, I don't even miss it, because Roca Cola takes it right off my paycheck every month...15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1.200 for Salu ne uintike me dun anu was going to sell the lurriture w pay tor some more pews in the churcm. on well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don't even miss it, because Roca Cola takes it right off my paycheck every month. $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house. A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear sults every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school.1 did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Please calculate my taxable income and complete pages 1 and 2 of Form 1040 (through taxable income, line 10) and Schedule A. You're still doing this for free, right? c. Complete Schedule A Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the requ computer and then upload it here by clicking "Browse." Next, click "Save." (Use 2019 tax rules regardless of year on the form.) SCHEDULE A Itemized Deductions OMB No 1545-0074 (Form 1040) Go to www.irs.gov/Schedule for instructions and the latest information 2018 Attach to Form 1040 Department of the Treasury Internal Revenue Service Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Attachment Sequence No 07 Name shown on Form 1000 Your soci security number 1 Medical and Dental Expenses 3 4 Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040, line 7 12 3 Multiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter-O- 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a. but not both. If you elect to include general sales taxes instead of income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes dAdd lines 5a through 5c e Enter the smaller of line 5d or $10,000 ($5,000f married fling separately) 6 Other taxes. List type and amount Sa 5b 5c 5d Se 6 7 7 Add lines 5e and 6 Interest You & Home mortgage interest and points. If you didn't use all of your Paid home mortgage loan(s) to buy, build, or improve your home, Caution: You see instructions and check this box mortgage interest deduction may be a Home mortgage interest and points reported to you on Form imited Instructions 1098 bHome mortgage interest not reported to you on Form 1098.1 paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address Ba 10 Points not reported to you on Form 1098. See instructions for special rules 8C d Reserved Bd e Add lines Ba through 8c Be 9 Investment interest. Attach Form 4952 required. See instructions 10 Add lines Be and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions 12 Other than by cash or check. If any gift of $250 or more, see you made a ght and got a instructions. You must attach Form 8283 if over $500 12 benefit fort. 13 see instructions 13 Carryover from prior year 14 Add lines 11 through 13 Casualty and 15 Casualty and theft lossles) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other 16 Other--from list in instructions. List type and amount Itemized Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040, line 8 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040 Cat No. 171450 14 15 16 17 Schedule A Form 1040 2018 Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2019 - To the friendly student tax preparer: Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady, Jr. The judge owed me a few favors and I really love the kid. He lives with me full-time and my wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess. I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8). Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year (and have receipt documentation for all contributions). I'm such a nice guy! gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Tums out, I don't even miss it, because Roca Cola takes it right off my paycheck every month...15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1.200 for Salu ne uintike me dun anu was going to sell the lurriture w pay tor some more pews in the churcm. on well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don't even miss it, because Roca Cola takes it right off my paycheck every month. $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house. A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear sults every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school.1 did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Please calculate my taxable income and complete pages 1 and 2 of Form 1040 (through taxable income, line 10) and Schedule A. You're still doing this for free, right? c. Complete Schedule A Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the requ computer and then upload it here by clicking "Browse." Next, click "Save." (Use 2019 tax rules regardless of year on the form.) SCHEDULE A Itemized Deductions OMB No 1545-0074 (Form 1040) Go to www.irs.gov/Schedule for instructions and the latest information 2018 Attach to Form 1040 Department of the Treasury Internal Revenue Service Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Attachment Sequence No 07 Name shown on Form 1000 Your soci security number 1 Medical and Dental Expenses 3 4 Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040, line 7 12 3 Multiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter-O- 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a. but not both. If you elect to include general sales taxes instead of income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes dAdd lines 5a through 5c e Enter the smaller of line 5d or $10,000 ($5,000f married fling separately) 6 Other taxes. List type and amount Sa 5b 5c 5d Se 6 7 7 Add lines 5e and 6 Interest You & Home mortgage interest and points. If you didn't use all of your Paid home mortgage loan(s) to buy, build, or improve your home, Caution: You see instructions and check this box mortgage interest deduction may be a Home mortgage interest and points reported to you on Form imited Instructions 1098 bHome mortgage interest not reported to you on Form 1098.1 paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address Ba 10 Points not reported to you on Form 1098. See instructions for special rules 8C d Reserved Bd e Add lines Ba through 8c Be 9 Investment interest. Attach Form 4952 required. See instructions 10 Add lines Be and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions 12 Other than by cash or check. If any gift of $250 or more, see you made a ght and got a instructions. You must attach Form 8283 if over $500 12 benefit fort. 13 see instructions 13 Carryover from prior year 14 Add lines 11 through 13 Casualty and 15 Casualty and theft lossles) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other 16 Other--from list in instructions. List type and amount Itemized Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040, line 8 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040 Cat No. 171450 14 15 16 17 Schedule A Form 1040 2018