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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)

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

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 Im 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). Im such a nice guy! I 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! I 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 didnt 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 dont 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 $1,400 in tuition to go to the local firefighter's school. I 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?

Complete pages 1 and 2 of Form 1040 (through taxable income, line 10) and Schedule A.

SCHEDULE A Itemized Deductions OMB No. 1545-0074
(Form 1040) 2018
Department of the Treasury Go to www.irs.gov/ScheduleA for instructions and the latest information.
Internal Revenue Service (99) Attach to Form 1040. Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Attachment Sequence No. 07
Name(s) shown on Form 1040 Your social security number
Medical and Dental Expenses Caution. Do not include expenses reimbursed or paid by others.
1 Medical and dental expenses (see instructions) 1
2 Enter amount from Form 1040, line 7
3 Multiply line 2 by 10% (0.10) 3
4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 4
Taxes You Paid 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 checkbox unchecked1 of 1 5a
b State and local real estate taxes (see instructions) 5b
c State and local personal property taxes 5c
d Add lines 5a through 5c 5d
e Enter the smaller of line 5d and $10,000 ($5,000 if married filing separately) 5e
6 Other taxes. List type and amount
6
7 Add lines 5e and 6 7
Interest You Paid 8 Home mortgage interest and points. If you didn't use all of your home
mortgage loan(s) to buy, build, or improve your home, see instructions and
Caution: check this box checkbox unchecked1 of 1
Your mortgage interest deduction may be limited (see instructions). a Home mortgage interest and points reported to you on Form 1098 8a
b Home mortgage interest not reported to you on Form 1098. If paid to the
person from whom you bought the home, see instructions and show that
person's name, identifying no., and address
8b
c Points not reported to you on Form 1098. See instructions for special rules 8c
d Reserved 8d
e Add lines 8a through 8c 8e
9 Investment interest. Attach Form 4952 if required. (see instructions) 9
10 Add lines 8e and 9 10
Gifts to Charity 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions
11
12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500
If you made a gift and got a benefit for it, see instructions. 12
13 Carryover from prior year 13
14 Add lines 11 through 13 14
Casualty and Theft Losses 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684
and enter the amount from line 18 of that form. See instructions 15
Other Itemized Deductions 16 Otherfrom list in instructions. List type and amount
16
Total Itemized Deductions 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040, line 8 17
18 If you elect to itemize deductions even though they are less than your standard deduction, check here checkbox unchecked1 of 1
For Paperwork Reduction Act Notice, see the Instructions for Form 1040. Cat. No. 17145C Schedule A (Form 1040) 2018

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