Scenario

Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2018.

• They have three children, Ashley, age 9; Patrick, age 6; and John, age 17.
  • Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-99-1234; Patrick, 789-56-4321; John, 123-45-6789.
• Taylor works part-time as a paralegal.
  • She earned $31,000 in 2018.
• Income Taxes: $4,200 withheld.
• Interest received from Local Bank: $6,575.
• Estimated tax payments: $25,000.
  • $350 paid with their 2017 state tax return.
• Jacob and Taylor bought their first house in 2018.
  • Home mortgage interest: $12,246.
  • Property tax: $12,230.
• Federal income withholding: $2,350.
• Charities: $4,500.
• $435 to rent a moving truck.
• $8,000 to put new siding on the house.
• $11,600 for child care expenses ($5,800 for each child).
  • It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98-7654321).
• Taylor is a part-time student at Ball State University in Muncie.
  • She received a 1098-T indicating tuition and fees for 2018 in the amount of $6,011.
• Health insurance for the family, through Taylor's job, cost $7,500 for all 12 months of 2018.
  • They paid deductibles and co-payments of $2,550.

Instructions

Complete the following:

• Enter information from Assessment 2, Schedules C and SE, into the 1040 form.
• Apply the rules for adjustments to adjusted gross income.
  • Enter applicable information from the scenario into the 1040 form.
  • Interpret official rules and instructions to record correct entries on the tax form.
• Calculate the AGI for the Weavers.