Requlred Informetlon [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 $173,520 (which consists only of salary) for purposes of this problem. December 31, 2018 To the friendly student tax preparer: Hi, it's Shady Slim again. Ijust 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'1l tell you whateverl 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 myjob 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 $2.320, 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 $18,720 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 $20,200 in medical expenses, and I was only reimbursed for $11,100. 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! I gave $1,020 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 $5,100 today (the appraiser surprised me!), even though I only paid $1,020 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 $102. Turns out, I don't even miss it, because Roca Cola takes it right off my paycheck every month...$17 a month starting in July. My pay stub verifies that I contributed the $102 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 $510 to help him out. I paid a lot of money in interest this year.I paid a total of $970 in personal credit card interest. I also paid $18,100 in interest on my $520,000 home mortgage that helped me buy my dream home. I also paid $2,040 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 $920. I paid $135 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 $1,320 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 $1,420 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 43) and Schedule A. You're still doing this for free, right? U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Lsa Only-Do not wite ar stapia n this spaca the year Jan. 1-Dec. 31, 2015, otar tax year beginning our social security numbar Ha pamt raturn, poun' iras nasmo and imaial Spouse's socis security numbr Mako suro tha SSNs) abowa Chack haro f you or your spous ing Filing Status 1Singe Check only one 3 Marrled filing separately. Enter spouse's SSN above Haad of housahold (with qualitying parson- 3oo Instructionsj the qualryhg parson is achild but not your dapandent, ontor this 2 Marrled fling Jointly (even If only one had Income) and tull name here. 5Qualifying widowferj with dependent child 6a Yourself. If someone can clalm you as a dependent, do not check box 6a on Ga and Eb 4 child under age 1 ivod with you social security numberrelationship to you you due to dhvorce It more than four check here d Total number of exemptions clalmed 7 Wages, salaries, tips, etc. Attach Form(s) W-2 8a Taxable Interest. Atach Schedule B If required b Tax-exempt interest. Do not include on line 8a 9a Ordnary dlvidends. Attach Schedule B If required 8b Wr2 here. Alsoa W-2 here. Also 96 W-2G and 10 Taxable retunds, credlts, or osets of state and local Income taxes 13 Capital galn or (loss). Attach Schedule D it required. If not required, checkhere13 14 Otner gains or losses. Attach Form 4797 If you did not see Instructions. 15a IRA distributions 16a Perslons and arnutles 16a 17 Rantal real estate, royalities, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Fam Income or (oss. Attach Schedule F b Taxable amount 17 20a Soclal securty benefmts 20a 22 Combine the amounts in the tar rigt column for lnes 7 through 21. Thls is your total Income22 24 Certain business expenses of reservists, pentorming artists, and feebasls government omcials. Attach Form 2108 or 2106-EZ 24 26 Moving expenses. Attach Form 3903 27 Deductibie part of salt-employment tax. Attach Schedule SE2 as Ser-employed SEP, SMPLE, and quaied plans 29 Self-employed health Insurance deduction 30 Penaity on earty withdrawal of savings 31a Almony paid bRecipient's SSN 32 IRA deduction 33 Student loan Interest deduction 34 Tultion and fees. Attach Form 8917 35 Domestic production activttles deduction. Attach Fom 8903 35 36 Add Ines 23 through 35 Income For Disclosure, Prtvacy Act, and Paperwork Reduction Act Notice, see separate Instructions Cat. No. 11320BF Form 1040 (201 Pago 38 Amount from Iine 37 (adjusted gross Income) 38 Tax and a checkYou were bom betore January 2, 1951, BindTotal boxes Ift Spouse was bom betore January 2, 1951 Bind checked39a b Ifyour spouse itemizes on a separate retum or you were a dual-status alien, check here 390 Stard40 temized deductions (trom Schedule A) or your standard deduction (see left margin) 41 Subtract IIne 40 trom lIne 38 People who 42 Exemptions. It ine 38 is $154,960 or less, mutplry $4,000 by the number on ine ed. Otherwtse, see instructions 42 y 4Taxable Income. Subtract line 42 from line 41. If Ine 42 Is more than line 41, enter-o- rae o 4 Tax (see Instructions. Check It any trom: Form(s) 8814 Fom 4972 claimed as a 45 Altenative minimum tax (see Instructions. Attach Form 6251 46 Excass advance premium tax credt repayment. Attach Form 8982 All othen: 48 Forelgntax credit. Attach Form 1116 It required rr49 Credit for child and dependent care experses. Attach Form 2441 49 50 Education credits from Form 8863, Ine 19 Married fiing 51 Retirement savings contributions credit.Attach Form 8880 51 52 53 Chid tax credit. Attach Schedule 8812, If required Resldential energy credits. Attach Fom 5695 Head of 54 Other creclts from Form a 3800 b8801 c souasebold, 55 56 Add lines 48 through 54. These are your total credlts sutract line 55 from line 47. If line 55 ls more than line 47, enter-O- 60a Household employment taxes trom Schedule H 61 Health care: Indlvidual responsiblity (see Instructons) Full-year coverage 62 Taxes hom: a Fom e96eb Fom e960 constructions, enter code(s) 63 Add Ines 56 through 62. This is your total tax_ Payments 6 Federal Income tax withheld trom Forms w-2 and 1099 65 2015 estimated tax payments and amount appled from 2014 retum | 65 6a Eamed Income credit (EIC) Schedule EIC. 67 Additional child tax credit. Attach Schedule 8812 68 American opportunity credit from Form 8863, line 8 69 Net premlum tax credit. Attach Form 8962 70 Amount pald with request for extension to fle 71 Excess social seourity and tier 1 ARTA tax withheld 72 Credt for tederal tax on tuels. Attach Form 4138 Refund75 If Ine 74 is more than line 63, subtract Ine 63 trom lne 74. This is the amount you overpald 75 76a Amount of lne 75 you want retunded to you. if Form 8888 Is attached, check here76a DidD Routing number You Owe 79 Estimated tax penalty (see Instructions) Do you want to allow another person to discuss this return with the IRS see instructions ? Third Pa y Yes. Complete below No Under panaks of panury. I daclara that lhava 1amned this return and accompanying schedulas and stat ments, and to ta bast of my knowladge and balat, thay are true coract, and commplata Decaraion or preparar lothar than taxpayen based onal Intomaton of which praparor has any knowladga Joint naurn? Sie Your sgutura Koop a opy for Spounos sgnatura f a joint raturn, both must signDao Eto IRS sart you an Iakantity Protaction Print Type proparars name Preparer Frin Use Only dss Form 1040 (2015 2 Requlred Informetlon [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 $173,520 (which consists only of salary) for purposes of this problem. December 31, 2018 To the friendly student tax preparer: Hi, it's Shady Slim again. Ijust 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'1l tell you whateverl 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 myjob 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 $2.320, 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 $18,720 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 $20,200 in medical expenses, and I was only reimbursed for $11,100. 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! I gave $1,020 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 $5,100 today (the appraiser surprised me!), even though I only paid $1,020 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 $102. Turns out, I don't even miss it, because Roca Cola takes it right off my paycheck every month...$17 a month starting in July. My pay stub verifies that I contributed the $102 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 $510 to help him out. I paid a lot of money in interest this year.I paid a total of $970 in personal credit card interest. I also paid $18,100 in interest on my $520,000 home mortgage that helped me buy my dream home. I also paid $2,040 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 $920. I paid $135 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 $1,320 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 $1,420 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 43) and Schedule A. You're still doing this for free, right? U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Lsa Only-Do not wite ar stapia n this spaca the year Jan. 1-Dec. 31, 2015, otar tax year beginning our social security numbar Ha pamt raturn, poun' iras nasmo and imaial Spouse's socis security numbr Mako suro tha SSNs) abowa Chack haro f you or your spous ing Filing Status 1Singe Check only one 3 Marrled filing separately. Enter spouse's SSN above Haad of housahold (with qualitying parson- 3oo Instructionsj the qualryhg parson is achild but not your dapandent, ontor this 2 Marrled fling Jointly (even If only one had Income) and tull name here. 5Qualifying widowferj with dependent child 6a Yourself. If someone can clalm you as a dependent, do not check box 6a on Ga and Eb 4 child under age 1 ivod with you social security numberrelationship to you you due to dhvorce It more than four check here d Total number of exemptions clalmed 7 Wages, salaries, tips, etc. Attach Form(s) W-2 8a Taxable Interest. Atach Schedule B If required b Tax-exempt interest. Do not include on line 8a 9a Ordnary dlvidends. Attach Schedule B If required 8b Wr2 here. Alsoa W-2 here. Also 96 W-2G and 10 Taxable retunds, credlts, or osets of state and local Income taxes 13 Capital galn or (loss). Attach Schedule D it required. If not required, checkhere13 14 Otner gains or losses. Attach Form 4797 If you did not see Instructions. 15a IRA distributions 16a Perslons and arnutles 16a 17 Rantal real estate, royalities, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Fam Income or (oss. Attach Schedule F b Taxable amount 17 20a Soclal securty benefmts 20a 22 Combine the amounts in the tar rigt column for lnes 7 through 21. Thls is your total Income22 24 Certain business expenses of reservists, pentorming artists, and feebasls government omcials. Attach Form 2108 or 2106-EZ 24 26 Moving expenses. Attach Form 3903 27 Deductibie part of salt-employment tax. Attach Schedule SE2 as Ser-employed SEP, SMPLE, and quaied plans 29 Self-employed health Insurance deduction 30 Penaity on earty withdrawal of savings 31a Almony paid bRecipient's SSN 32 IRA deduction 33 Student loan Interest deduction 34 Tultion and fees. Attach Form 8917 35 Domestic production activttles deduction. Attach Fom 8903 35 36 Add Ines 23 through 35 Income For Disclosure, Prtvacy Act, and Paperwork Reduction Act Notice, see separate Instructions Cat. No. 11320BF Form 1040 (201 Pago 38 Amount from Iine 37 (adjusted gross Income) 38 Tax and a checkYou were bom betore January 2, 1951, BindTotal boxes Ift Spouse was bom betore January 2, 1951 Bind checked39a b Ifyour spouse itemizes on a separate retum or you were a dual-status alien, check here 390 Stard40 temized deductions (trom Schedule A) or your standard deduction (see left margin) 41 Subtract IIne 40 trom lIne 38 People who 42 Exemptions. It ine 38 is $154,960 or less, mutplry $4,000 by the number on ine ed. Otherwtse, see instructions 42 y 4Taxable Income. Subtract line 42 from line 41. If Ine 42 Is more than line 41, enter-o- rae o 4 Tax (see Instructions. Check It any trom: Form(s) 8814 Fom 4972 claimed as a 45 Altenative minimum tax (see Instructions. Attach Form 6251 46 Excass advance premium tax credt repayment. Attach Form 8982 All othen: 48 Forelgntax credit. Attach Form 1116 It required rr49 Credit for child and dependent care experses. Attach Form 2441 49 50 Education credits from Form 8863, Ine 19 Married fiing 51 Retirement savings contributions credit.Attach Form 8880 51 52 53 Chid tax credit. Attach Schedule 8812, If required Resldential energy credits. Attach Fom 5695 Head of 54 Other creclts from Form a 3800 b8801 c souasebold, 55 56 Add lines 48 through 54. These are your total credlts sutract line 55 from line 47. If line 55 ls more than line 47, enter-O- 60a Household employment taxes trom Schedule H 61 Health care: Indlvidual responsiblity (see Instructons) Full-year coverage 62 Taxes hom: a Fom e96eb Fom e960 constructions, enter code(s) 63 Add Ines 56 through 62. This is your total tax_ Payments 6 Federal Income tax withheld trom Forms w-2 and 1099 65 2015 estimated tax payments and amount appled from 2014 retum | 65 6a Eamed Income credit (EIC) Schedule EIC. 67 Additional child tax credit. Attach Schedule 8812 68 American opportunity credit from Form 8863, line 8 69 Net premlum tax credit. Attach Form 8962 70 Amount pald with request for extension to fle 71 Excess social seourity and tier 1 ARTA tax withheld 72 Credt for tederal tax on tuels. Attach Form 4138 Refund75 If Ine 74 is more than line 63, subtract Ine 63 trom lne 74. This is the amount you overpald 75 76a Amount of lne 75 you want retunded to you. if Form 8888 Is attached, check here76a DidD Routing number You Owe 79 Estimated tax penalty (see Instructions) Do you want to allow another person to discuss this return with the IRS see instructions ? Third Pa y Yes. Complete below No Under panaks of panury. I daclara that lhava 1amned this return and accompanying schedulas and stat ments, and to ta bast of my knowladge and balat, thay are true coract, and commplata Decaraion or preparar lothar than taxpayen based onal Intomaton of which praparor has any knowladga Joint naurn? Sie Your sgutura Koop a opy for Spounos sgnatura f a joint raturn, both must signDao Eto IRS sart you an Iakantity Protaction Print Type proparars name Preparer Frin Use Only dss Form 1040 (2015 2