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[The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38,400 in 2019. She is 45 years old and has been divorced for four years. She receives $1,300 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,200 of rental payments from tenants and she incurred $19,578 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 $2,210 to move their personal belongings, and she and Heather spent two days driving the 1,466 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 $3,200 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 $6,000 in state income taxes and $12,700 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:
| | | |
| Insurance premiums | $ | 8,152 |
| Medical care expenses | $ | 1,300 |
| Prescription medicine | $ | 550 |
| Nonprescription medicine | $ | 300 |
| New contact lenses for Heather | $ | 400 |
| |
Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,100 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 $2,200 from her disability insurance. Her employer, the Central Georgia School District, paid 60% of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40% 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: $2,400 of interest income from corporate bonds and $1,700 interest income from City of Denver municipal bonds. Overall, Rebas stock portfolio appreciated by $12,200 but she did not sell any of her stocks. Heather reported $6,600 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).
a. Determine Rebas federal income taxes due or taxes payable for the current year. Use Tax Rate Schedule for reference. (Round your intermediate computations and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)
Amount Description Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds (1) Gross income Deductions for AGI: Expenses for rental property (2) Total for AGI deductions (3) AGI From AGI deductions: Medical expenses State income taxes Charitable contributions (4) Total itemized deductions (5) Standard deduction (6) (7) Taxable income (8) Tax on taxable income (9) Credits (10) Tax prepayments 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 required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." (Use 2019 tax rules regardless of year on form.) E 2018 MB No. 1545-0078TRAS URO Oxy- N A 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 2 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Head of household Qualifying widower) Your social security number You were bom before January 2, 1954 Your standard deduction: Someone can claim you as a dependent If joint return, spouse's first name and initial Last name 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. box, see instructions. Apt. no. Full-year health care coverage or exempt (see inst.) Presidential Election Campaign see inst.) You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. lif more than four dependents, see inst, and here (2) Social security number (3) Relationship to you Dependents (see instructions): (1) First name (4) if qualifies for see inst. Child tax credit Credit for other dependents Last name Sign Here Joint return? See instructions. Keep a copy for your records. PIN, enterit 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 preparer father than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Protection here (see Inst.) Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an identity Protection PIN, enter it here see inst PTIN Firm's EIN Preparer's name Preparer's signature Paid Preparer Firm's name Use Only Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Check if: 3rd Party Designee Self-employed Phone no. Cat. No. 11320B Form 1040 (2018) Form 1040 (2018) Page 2 110 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . 2a Tax-exempt interest. . . 28 b Taxable interest . . . Arach Forms W-2. Also attach 3a Qualified dividends. . - b Ordinary dividends . . Forms) W-2G and 4a IRAs, pensions, and annuities. b Taxable amount. . . 1099-R if tax was withheld. 5a Social security benefits. . 5a b Taxable amount . . . 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, line 36, from line 6 - - - Standard - - - - - - - - - - Deduction for 8 Standard deduction or itemized deductions (from Schedule A). . . . . . . . . . . . Single or married 9 filing separately. Qualified business income deduction (see instructions). . . . . . . . . . . . . . $12.000 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- . . . . Married filing jointly or Qualifying 11 a Tax (see inst.) _(check if any from: 1 Form(s) 88142 Form 4972 3 widower) b Add any amount from Schedule 2 and check here . . . . . . . . . . . . $24,000 U Head of 12 a Child tax credit/credit for other dependents Add any amount from Schedule 3 and check here household, $18,000 Subtract line 12 from line 11. If zero or less, enter-O- . . . . . . . . . . . . - . If you checked 114 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . any box under Standard Total tax. Add lines 13 and 14 . . . . . . . . . . . . . . . . . . . . deduction Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . see instructions Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 - - - - - - - - - - - - - - 18 Add lines 16 and 17. These are your total payments 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid . . Refund . . 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here . . . . U Direct deposit? b Routing number c Type: Checking Savings See instructions. Account number 21 Amount of line 19 you want applied to your 2019 estimated tax . . 21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions . . . 23 Estimated tax penalty (see instructions). . . . . . . . 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. 113 16 20a Form 1040 (2018) Required: b. Is Reba allowed to file as a head of household or single? c. Determine the amount of FICA taxes Reba was required to pay on her salary. (Round your final answer to the nearest whole dollar amount.) d. Determine Heather's federal income taxes due or payable. Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Round your intermediate computations and final answer to the nearest whole dollar amount.) b. Head of household Status of taxpayer FICA taxes Tax refund Amount Description Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds (1) Gross income Deductions for AGI: Expenses for rental property (2) Total for AGI deductions (3) AGI From AGI deductions: Medical expenses State income taxes Charitable contributions (4) Total itemized deductions (5) Standard deduction (6) (7) Taxable income (8) Tax on taxable income (9) Credits (10) Tax prepayments 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 required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." (Use 2019 tax rules regardless of year on form.) E 2018 MB No. 1545-0078TRAS URO Oxy- N A 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 2 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Head of household Qualifying widower) Your social security number You were bom before January 2, 1954 Your standard deduction: Someone can claim you as a dependent If joint return, spouse's first name and initial Last name 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. box, see instructions. Apt. no. Full-year health care coverage or exempt (see inst.) Presidential Election Campaign see inst.) You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. lif more than four dependents, see inst, and here (2) Social security number (3) Relationship to you Dependents (see instructions): (1) First name (4) if qualifies for see inst. Child tax credit Credit for other dependents Last name Sign Here Joint return? See instructions. Keep a copy for your records. PIN, enterit 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 preparer father than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Protection here (see Inst.) Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an identity Protection PIN, enter it here see inst PTIN Firm's EIN Preparer's name Preparer's signature Paid Preparer Firm's name Use Only Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Check if: 3rd Party Designee Self-employed Phone no. Cat. No. 11320B Form 1040 (2018) Form 1040 (2018) Page 2 110 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . 2a Tax-exempt interest. . . 28 b Taxable interest . . . Arach Forms W-2. Also attach 3a Qualified dividends. . - b Ordinary dividends . . Forms) W-2G and 4a IRAs, pensions, and annuities. b Taxable amount. . . 1099-R if tax was withheld. 5a Social security benefits. . 5a b Taxable amount . . . 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, line 36, from line 6 - - - Standard - - - - - - - - - - Deduction for 8 Standard deduction or itemized deductions (from Schedule A). . . . . . . . . . . . Single or married 9 filing separately. Qualified business income deduction (see instructions). . . . . . . . . . . . . . $12.000 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- . . . . Married filing jointly or Qualifying 11 a Tax (see inst.) _(check if any from: 1 Form(s) 88142 Form 4972 3 widower) b Add any amount from Schedule 2 and check here . . . . . . . . . . . . $24,000 U Head of 12 a Child tax credit/credit for other dependents Add any amount from Schedule 3 and check here household, $18,000 Subtract line 12 from line 11. If zero or less, enter-O- . . . . . . . . . . . . - . If you checked 114 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . any box under Standard Total tax. Add lines 13 and 14 . . . . . . . . . . . . . . . . . . . . deduction Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . see instructions Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 - - - - - - - - - - - - - - 18 Add lines 16 and 17. These are your total payments 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid . . Refund . . 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here . . . . U Direct deposit? b Routing number c Type: Checking Savings See instructions. Account number 21 Amount of line 19 you want applied to your 2019 estimated tax . . 21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions . . . 23 Estimated tax penalty (see instructions). . . . . . . . 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. 113 16 20a Form 1040 (2018) Required: b. Is Reba allowed to file as a head of household or single? c. Determine the amount of FICA taxes Reba was required to pay on her salary. (Round your final answer to the nearest whole dollar amount.) d. Determine Heather's federal income taxes due or payable. Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Round your intermediate computations and final answer to the nearest whole dollar amount.) b. Head of household Status of taxpayer FICA taxes Tax refund
