Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jasons Social Security number is 111-11-1112, and Junes is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund.

Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2018. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax.

Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jasons support during 2018. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2018, she has decided not to do so. Roberta provides all of Junes support.

Robertas mother died on January 7, 2018. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mothers life insurance policy, Roberta received insurance proceeds of $300,000. Her mothers cost basis for thelife insurance policy was $120,000. Robertas favorite aunt gave her $13,000 for her birthday in October.

On November 8, 2018, Roberta sells for $22,000 Amber Company stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2012. Walts cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2012. On December 1, 2018, Roberta sold Falcon stock for $13,500. She had purchases the stock on July 2, 2014, for $8,000.

Roberta has always wanted to operate her own business. In October 2018, she incurred expenses of $15,000 in investigating the establishment of a retail computer franchise. However, since she has teenage children preparing for college, she decides to forgo self-employment for at least a couple of years.

An examination of Robertas records reveals that she received the following:

Interest income of $2,500 from First Savings Bank.

Groceries valued at $750 from Kroger Groceries for being the 100,000th customer.

Qualified dividend income of $1,800 from Amber Company.

Interest income of $3,750 on City of Springfield school bonds.

Alimony of $16,000 from Wayne.

Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W2 wage limitation does not apply. On line 42 of form 1040 enter 20% of the $5,300 or $1,060 as a Qualified Business Income Deduction.

From her checkbook records, she determines that she made the following payments during 2018:

Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).

Paid $5,000 to ECM Hospital for the medical expenses of a friend from work.

Mortgage interest on her residence of $7,800 to Peoples Bank.

Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car.

$800 for landscaping expenses for residence.

Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000.

Medical expenses of $5,000 for her and $800 for Jason. Roberta and her children were covered by her employers medical insurance policy with four-fifths of the premiums being paid by the employers. The employer offers a cafeteria plan for the employees portion of the premiums. The total premiums were $10,000 and Roberta received medical benefits of $1,500 under the plan.

A $1,000 ticket for parking in a handicapped space.

Attorneys fees of $500 associated with unsuccessfully contesting the parking ticket.

Contribution of $250 to the campaign of a candidate for governor.

Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994.

Calculate Robertas net tax payable or refund due for 2018. Use the appropriate forms and schedules.