Sean Graham (SS 618 77 4444) is unmarried Sean has one child Mark who lived with him Mark Graham (SS 618 77 4446) is 15 years old and a full time student He lived with Sean for the entire year Sean provided more than half of his support Sean worked as a tutor He received money from ACME Inc (Form 1099 MISC) and an extra $4,000 in cash from other clients Sean also received a new cell phone as payment for his services in the amount of $500 This amount was not reported on a 1099 MISC Sean had no payments requiring 1099 payments Sean uses the cash basis of accounting and materially participated in the business The business was started in 2017 Sean incurred the following expenses Advertising $ 150 Teaching Supplies $2300 Car Truck Expenses $1063 (100 used for business) Parking Tolls $ 137 (100 used for business) Office Expenses $ 250 Sean also kept a mileage log which documented the following commuting miles 1000 business miles 1500 other miles 550 The car was placed in service for business on 5 1 2019 Sean used this vehicle for both business and personal The vehicle was available for personal use during off duty hours He also had another vehicle available for personal use This evidence was also in writing Sean also had receipts for meals and entertainment which included Meals in 2019 for himself $3,000 Business meals and entertainment $ 200 for himself and a few customers to discuss business Instructions Prepare Sean Grahams Tax Return Form 1040 Page 1 through line 7b, based on the information provided You must complete all necessary schedules and forms associated with this return, including any worksheets Be sure to include names and social security numbers on each page You will use Form 1040, Schedules 1, and C

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Sean Graham (SS#618-77-4444) is unmarried. Sean has one child Mark who lived with him. Mark Graham (SS#618-77-4446) is 15 years old and a full time

Sean Graham (SS#618-77-4444) is unmarried. Sean has one child Mark who lived with him.

Mark Graham (SS#618-77-4446) is 15 years old and a full time student. He lived with Sean for the entire year. Sean provided more than half of his support.

Sean worked as a tutor. He received money from ACME Inc (Form 1099-MISC). and an extra $4,000 in cash from other clients. Sean also received a new cell phone as payment for his services in the amount of $500. This amount was not reported on a 1099-MISC. Sean had no payments requiring 1099 payments. Sean uses the cash basis of accounting and materially participated in the business. The business was started in 2017.

Sean incurred the following expenses:

Advertising $ 150

Teaching Supplies $2300

Car & Truck Expenses $1063 (100% used for business)

Parking & Tolls $ 137 (100% used for business)

Office Expenses $ 250

Sean also kept a mileage log which documented the following:

commuting miles 1000
business miles 1500
other miles 550

The car was placed in service for business on 5/1/2019. Sean used this vehicle for both business and personal. The vehicle was available for personal use during off-duty hours. He also had another vehicle available for personal use. This evidence was also in writing.

Sean also had receipts for meals and entertainment which included:

Meals in 2019 for himself $3,000

Business meals and entertainment $ 200 for himself and a few customers to discuss business

Instructions

Prepare Sean Grahams Tax Return Form 1040 Page 1 through line 7b, based on the information provided. You must complete all necessary schedules and forms associated with this return, including any worksheets. Be sure to include names and social security numbers on each page. You will use Form 1040, Schedules 1, and C.