Required information [The following information applies to the questions displayed below.) 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 turn. 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 in Annalt Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate Remember when I will you about ula yuyulme the will carrhau DUTCHI Or medical experises Lidl 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! Igave $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 $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? Required information Form 1040 (2016) Page 2 172.900 1 2a 26 Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. 4b Sb 6 172,900 Standard deduction for Single or Married Ning separately $12,000 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest Taxable interest 3a Qualified dividends b Ordinary dividends 4a IRAs, pensions, and annuities 4a Taxable amount 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 or tomized deductions (from Schedule A) 9 Qualified business income deduction ( Instructions) 10 Taxable income. Subtractines Band 9 from line 7. fzere or less, enter 11 a Tax (see inal) check any from 1. Form) 6614 2. Form 4972 7 172,900 22,090 8 9 10 150,810 Married fling joint of Qualifying Widower), 524,000 11 Head of household, 518,000 12 b Add any amount from Schedule 2 and check here 12 a Chid tax creditoredit for other dependents Add any amount from Schedule and check here 13 Subtractine 12 from line 11. 200 or less, enter 14 Other taxes. Altach Schedule 4 15 Total tax. Add Ines 13 and 14 10 Federal income tax wit held from Forms W-2 and 1090 17 Refundable a EIC (int) 13 14 15 If you checked any box under Standard deduction, see Instructions 10 bach 8812 Required information 3. b Add any amount from Schedule 2 and check here 11 12 a Child tax cred credit for other Head of dependents household, $18,000 b Add any amount from Schedule 3 and check here 12 13 Subtract line 12 from line 11. zero or less, enter 13 14 Other taxes. Attach Schedule 4 14 . If you checked any 15 Total tax. Add Ines 13 and 14 15 box under Standard 16 Federal income tax withheld from Forms W-2 and 1099 16 deductions Instructions 17 Refundable a EIC (1) Sch. 1812 credits: Form 8863 d Add ay amount from Schedule 5 17 18 Add lines 16 and 17. These are your total payments Refund 19 If line 18 is more than Ine 15, subtract line 15 from line 18. This is the amount you avarpaid 19 20a Amount of ine 19 you want refunded to you. If Form 8888 is attached, check here 200 > Routing Direct deposit? See number Type: Checking Savings Instructions d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount You 22 Amount you owe Subtractine 18 from line 15. For details on how to pay, see Instructions 22 Owe 23 Estimated tax penalty (see instructions) 23 Go to www.ro.gov/form1040 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 FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL 2019 McGraw-Hill Education DO Form 1040 (2016) Schedule A of Form 1040. Itemized Deductions OMB No 1545-0074 SCHEDULE A (Form 1040) Department of the Treasury 2018 Go to www.irs.gov Schedule for instructions and the latest information Attach to Form 1040 Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line Internal Revenue Service (9) Attachment Sequence No. 07 Your social security number 123-45-6789 9,000 17.290 O Name(s) shown on Form 1040 'Shady Slim Medical and Dental Caution. Do not include expenses reimbursed or paid by others Expenses 1 Medical and dental expenses (se instructions) 2 Enter amount from Form 1040, line 7 172,900 3 Multiply line 2 by 10% (0.10) 4 Subtract line from ine 1. line 3 is more than line 1. enter- 5 State and local taxes Taxes You Paid State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on Ine 5, but not both you clect to include general sales taxes instead of income taxes check the box b State and local reale ( struction) State and local personal property taxes dAdd lines 5a through 5c Enter the sale of ined and $10,000 (56,000 of married fing separately) & Omer taxes List type and amount 2,000 5c 2.000 5e 6 2,000 7 Add Ines 5e and 6 8 Home mortgage Interest and points. If you didn't use all of your home bobudimorowe mensen Interest You Pald 2,000 Required information Interest You Paid 8 Home mortgage interest and points. If you didn't use all of your home mortgage loans) to buy build, or improve your home, se retructions and Caution: check this box Home mortgage Interest and points reported to you on Form 1096 Your mortgage interest Home mortgage Interest not reported to you on Form 100 paid to the deduction may be limited person from whom you bought the home, se instructions and show that (se instructions). person's name identifying no, and address 18.000 Bd Bb c Points not reported to you on Form 1098. See instructions for special rules Bc 0 Reserved e Addnes Bathough Be Investment interest. Attach Form 4052 required. (se instruction) 9 10 Add linee Board 10 Gifts to Charity 11 Gita by cash or check. If you made any gift of $250 or more, se Instructions 11 1,000 12 Other than by cash or check. If any gift of $250 or more instructions you made a gift and You must attach Form 23 over 500 12 1.000 got a benefit for 13 Carryover from prior your 13 Instructions 14 Aodnes 11 through 13 14 2,090 Casualty and Theft 15 Cauty and theft) from a federaly declared dator other than not qualified disasters). Attach Form 4634 Losses and entlar the amount from line 18 of that form Senructions 15 Other itemized 16 One from ligt in instructions. List type and amount Deductions 10 Total itemized 17 Add the nouns in re far right column forines through 16. Also enter this amount on Form 1040, in 8 17 4,090 Deductions 10 if you set totemice 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 Schedule A 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 FUNOSCILEOR ANY PURPOSE OTHER THAN EDUCATIONALA 2018 MOUW HEducation