Question
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2019. She is 45 years old and has been divorced for
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2019. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heathers support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,000 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,800 in state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:
Insurance premiums | $ | 7,952 |
Medical care expenses | $ | 1,100 |
Prescription medicine | $ | 350 |
Nonprescription medicine | $ | 100 |
New contact lenses for Heather | $ | 200 |
|
Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasnt able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,500 interest income from City of Denver municipal bonds. Overall, Rebas stock portfolio appreciated by $12,000 but she did not sell any of her stocks. Heather reported $6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heathers only source of income for the year. Reba had $10,000 of federal income taxes withheld by her employer. Heather made $1,000 of estimated tax payments during the year. Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA).
Using the information from part a-1, Complete pages 1 and 2, Schedule 1, and Schedule 3 of Form 1040 for Reba.
Reba Dixon's address is 19010 N.W. 135th Street, Miami, FL 33054.
Social security numbers:
Reba Dixon: 111-11-1111
Heather Dixon: 222-22-2222
(Input all the values as positive numbers. Use 2019 tax rules regardless of year on tax form. Round your intermediate computations and final answers to the nearest whole dollar amount.)
Pls put answers as line numbers on the tax forms
Page 1 of Form 1040. Use provided information and follow instructions on form. 2018 OMB No. 1545-0074 Department of the Treasury-Internal 1040 Revenue Service (99) U.S. Individual Income Tax Return O Married filing Single Filing status: jointly Your first name and initial O Married filing separately O Head of household IRS Use Only-Do not write in this space. Qualifying widow(er) Your social security number (Enter as XXX-XX-XXXX) 111-11-1111 Last name Reba Your standard deduction: Someone can claim you as a dependent Dixon You were born before January 2, 1954 You are blind If joint return, spouse's first name and initial Last name Spouse's social security number (Enter as XXX-XX-XXXX) Spouse standard Someone can claim your spouse as a deduction: dependent Spouse was born before January 2, 1954 O 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. box, see instructions. Apt. no. 19010 N.W. 135th Street City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Miami, FL 33054. O Full-year health care coverage or exempt (see instructions) Presidential Election Campaign (see inst.) O You Spouse J If more than four dependents, see inst. and here (4) if child under age 17 qualifies for (see inst.): Credit for other Child tax credit. dependents Dependents (see instructions): (2) Social security number (3) Relationship to you (1) First name Last name 'Heather Dixon 222-22-2222 Daughter Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, Here correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Joint return? If the IRS sent you an Identity See instructions. Protection PIN, enter it here (see a copy for inst.) your records. Spouse's signature. If a joint return, both Snouse's occunation If the IRS sent you an Identity Date Page 2 6 0 8 9 0 Form 1040 (2018) 1 Attach Form(s) W-2. 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Also attach Form(s) W- 2a Tax-exempt interest 2a b Taxable interest 2b 2G and 1099-R if tax 3a Qualified dividends b Ordinary dividends 3b was withheld. 4a IRAs, pensions, and annuities 4a b Taxable amount 4b 5a Social security benefits 5a b Taxable amount 5b Standard deduction for- 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, Single or Married line 36, from line 6 71 filing separately, $12,000 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- 10 . Married filing jointly or Qualifying 11 a Tax (see inst.) (check if any from: 1. Form(s) 8814 2. Form 4972 widow(er), $24,000 3. b Add any amount from Schedule 2 and check here 11 12 a Child tax credit/credit for other Head of household, dependents $18,000 b Add any amount from Schedule 3 and check here 12 13 Subtract line 12 from line 11. If zero or less, enter-O- 13 14 Other taxes. Attach Schedule 4 14 . If you checked any 15 Total tax. Add lines 13 and 14 15 box under Standard 16 Federal income tax withheld from Forms W-2 and 1099 16 deduction, see 17 Refundable instructions. a EIC (see inst.) b Sch. 8812 credits: c Form 8863 Add any amount from Schedule 5 17 18 Add lines 16 and 17. These are your total payments. 18 Refund 19 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? See b Routing number c Type: Checking Savings instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 22 Amount You Owe 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS 0 0 0 0 Form 1040 (2018) EOD END TAV CII INCED COD ANV DI IDDOSE OTUED TUAM ENIICATIONAL 2010 Morra Dil CdA dan Additional Income and Adjustments to Income OMB No. 1545-0074 2018 SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 Attach to Form 1040. Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No. 01 Your social security number Additional 1-9 b Reserved 1-9b Income 10 Taxable refunds, credits, or offsets of state and local income taxes 10 11 Alimony received 11 12 Business income or (loss). Attach Schedule C or C-EZ 12 13 Capital gain or loss). Attach Schedule D if required. If not required, check 13 here 14 Other gains or losses). Attach Form 4797 14 15a Reserved 15b 16a Reserved 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 18 Farm income or loss). Attach Schedule F 18 19 Unemployment compensation 19 20a Reserved 20b 21 Other income. List type and amount 21 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 22 0 Adjustments 23 Educator expenses 23 to Income 24 Certain business expenses of reservists, performing and fee-basis government officials. Attach Form 2106 24 25 Health savings account deduction. Attach Form 8889 25 26 Moving expenses for members of the armed forces. 26 Attach Form 3903 27 Deductible part of self-employment tax. Attach Schedule 27 SE 28 Self-employed SEP, SIMPLE, and qualified plans 28 29 Self-employed health insurance deduction 29 30 Penalty on early withdrawal of savings 30 31a Alimony paid b Recipient's SSN 31a 32 IRA deduction 32 33 Student loan interest deduction 33 34 Reserved 34 35 Reserved 35 36 Add lines 23 through 35 36 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2018 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill artists, Schedule 3 of Form 1040. Nonrefundable Credits OMB No. 1545-0074 SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 2018 Attach to Form 1040. Go to www.irs.gov/Form 1040 for instructions and the latest information. Attachment Sequence No. 03 Your social security number Nonrefundable 48 Foreign tax credit. Attach Form 1116 if required 48 Credits 49 Credit for child and dependent care expenses. Attach Form 2441 49 50 Education credits from Form 8863, line 19 50 51 Retirement savings contributions credit. Attach Form 8880 51 52 Reserved 52 53 Residential energy credit. Attach Form 5695 53 54 Other credits from a 3800 b 8801 54 Form 55 Add the amounts in the far right column. Enter here and include on Form 1040, line 12 55 0 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 3 (Form 1040) 2018 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill Education.Step by Step Solution
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