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. Tincurred 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 $1000 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. 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 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. 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 suits 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 $1400 in tuition to go to the local firefighter's school: 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? Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the re computer and then upload it here by clicking "Browse." Next, click "Save." (Use 2019 tax rules regardless of year on form.) 1040 Department of the Treasury - Internal Revenue Service (99) U.S. Individual Income Tax Return Filing status: Single Married filing jointly Married filing separately Your first name and initial Last name 2018 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Head of household Qualifying widower) Your social security number Your standard deduction: Someone can claim you as a dependent If joint return, spouse's first name and initial Last name You were bom before January 2, 1954 You are blind Spouse's social security number Spouse standard deduction: Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 Spouse is blind Spouse itemizes on a separate return or you were dual-status alien Home address number and street). If you have a P. O. bax, see Instructions Apt.no Full-year health care coverage or exempt (see inst.) Presidential Election Campaign free inst.) You Spouse If more than four dependents, see inst, and here City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Dependents (see instructions): () First name (2) Social security number (3) Relationship to you Last name 14 If qualities for see inst. Child tax credit Credit for other dependents Sign Under penalties of perjury. I declare that I have examined this retum and accompanying schedules and statements, and to the best of my knowledge and belief, they are true correct, and complete. Declaration of prepare fother than taxpayer) is based on all information of which preparer has any knowledge Here Your signature Date Your occupation the IRS sent you an identity Protection Joint return? PIN, enterit here see inst See instructions Keep a copy for Spouse's signature. If a joint return, both must sign. Dato Spouse's occupation the IRS sont you an identity Protection PIN, enterit your records hereinst Preparer's name Preparer's signature PTIN Firm's EIN Check it Paid 3rd Party Design Preparer Firm's name Phone no Sell employed Use Only Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113000 Form 1040 2018 Form 1040 (2018) 1 Page 2 --- Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a Attach Forms b Taxable interest 2b W-2. Also attach 3a Qualified dividends Formis) W-2G and b Ordinary dividends 3b 1090 A tax was 4a IRAS, pensions, and annuities 4a b Taxable amount 4b withheld 5a Social security benefits 5a b Taxable amount 5b 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1. line 22 6 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, Standard subtract Schedule 1, line 36, from line 6 7 Deduction for 8 Standard deduction or itemized deductions from Schedule A) 8 Single or married filing separately. 9 Qualified business Income deduction (see Instructions) 9 $12,000 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- Married filing 10 jointly or Qualifying 11 a Tax (see inst.) check if any from: 1 Form(s) 8814 2 Form 4972 3 widower) $24,000 b Add any amount from Schedule 2 and check here 11 Head of 12 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here 12 household, $18,000 13 Subtract line 12 from line 11. If zero or less, enter -- 13 If you checked 14 Other taxes. Attach Schedule 4 14 any box under Standard 15 Total tax. Add lines 13 and 14 15 deduction 16 see instructions. Federal income tax withheld from Forms W-2 and 1099 16 17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 17 18 Add lines 16 and 17 These are your total payments 18 19 Refund If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 19 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 20a Direct deposit? Routing number e Type: Checking Savings See instructions d Account number 21 Amount of line 19 you want applied to your 2018 estimated tax 21 Amount You Owe 22 Amount you owo. Subtract line 18 from line 15. For details on how to pay, see instructions 22 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gowForm 1040 for instructions and the latest information Form 1040 2018