Richard McCarthy (born 2/14/64; Sodial Security number 100-10-9090) and Christine McCarthy (borm 6/1/1966; Social security number 101-21- 3434) have a 19-year-old son (born 10/2/99 Sodial Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-cld daughter (Social Security number 444-23-1212), Justine, that lives with them. Richard is the CEO at a national paper company. His Form W-2 is provided. Christine is an optometrist and operates her own practice ( The Eyes of March) in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Gross sales $270,000 Returns 9,000 Inventory: Beginning inventory $24,000 Purchases 120,000 Ending inventory 30,000 Rent 24,000 Insurance 11,000 Professional fees 3,000 Payroll 37,000 Payroll taxes 2,800 Utilities 4,000 Office expenses 2,000 5,000 Depreclation The McCarthys have a nanny/housekeeper they paid $12,000 during 2018. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $378 (based on the first $7,000 of wages) in 2018 Christine recelved a 2018 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,400. Note that McCarthys reasonably allocate $1,278 to state income tax expense for purposes of the Net Investment Income tax The McCarthys pald the following in 2018 $15.600 Home mortgage interest 5,600 Property taxes Richard McCarthy (born 2/14/64; Sodial Security number 100-10-9090) and Christine McCarthy (borm 6/1/1966; Social security number 101-21- 3434) have a 19-year-old son (born 10/2/99 Sodial Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year-cld daughter (Social Security number 444-23-1212), Justine, that lives with them. Richard is the CEO at a national paper company. His Form W-2 is provided. Christine is an optometrist and operates her own practice ( The Eyes of March) in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Gross sales $270,000 Returns 9,000 Inventory: Beginning inventory $24,000 Purchases 120,000 Ending inventory 30,000 Rent 24,000 Insurance 11,000 Professional fees 3,000 Payroll 37,000 Payroll taxes 2,800 Utilities 4,000 Office expenses 2,000 5,000 Depreclation The McCarthys have a nanny/housekeeper they paid $12,000 during 2018. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $378 (based on the first $7,000 of wages) in 2018 Christine recelved a 2018 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,400. Note that McCarthys reasonably allocate $1,278 to state income tax expense for purposes of the Net Investment Income tax The McCarthys pald the following in 2018 $15.600 Home mortgage interest 5,600 Property taxes
