Question
Shelly Beaman (social security number 412-34-5670) is single and resides at 540 Front Street, Ashland, NC 27898. Shelly's W-2 wages - $55,800 Federal withholding -
Shelly Beaman (social security number 412-34-5670) is single and resides at 540 Front Street, Ashland, NC 27898.
Shelly's W-2 wages - $55,800
Federal withholding - 7,044
Social security wages - 55,800
Social security withholding - 3,460
Medicare withholding - 809
State withholding -3,348
1099-INT New Bank - 532
1099-DIV XYZ, Inc.
Ordinary dividends - 258
Qualified dividends - 258
Shelly had the following itemized deductions:
State income tax withholding (from W-2) - $3,348
State income tax paid with 2018 return - 600
Real estate tax - 4,200
Mortgage interest - 11,800
Charitable contributions - 2,500
Shelly also started her own home design consulting business in March 2019 (Business code, 238990, Cash basis). The results of her business operations for 2017 follow:
Gross receipts from clients - $154,000
Vehicle mileage (Enter business miles 21,000)
21,000 business miles (2,100 per month)
32,000 total miles during the year
2011 Chevy Suburban
Placed in service 03/01/2019
*Ignore the parentheses*
Postage - (750)
Office supplies - (1,500)
State license fees - (155)
Supplies - (5,300)
Professional fees - (2,500)
Design software - (1,000)
Professional education programs (registration) - (550)
Travel to education program
- Airplane - (350)
- Lodging $119/night 3 nights
- Meals per diem 3 days - $55
Business Assets / Date / Purchased Cost
- Laptop 6/08/2019 - $2,500
- Computer 3/05/2019 - $5,700
- Printer 3/01/2019 - $1,800
- Copier 6/02/2019 - $1,700
- Furniture 4/01/2019 - $5,000
- Building 3/01/2019 - $175,000
- Phone (600)
- Internet service (450)
- Rent (8,300)
- Insurance (1,700)
Shelly made a $29,000 estimated tax payment on September 15, 2019.
Prepare Shelly' s Form 1040 for 2019 including all appropriate schedules. Schedule A, Schedule C, Form 4562, and Schedule SE are required. Section 179 is elected on all eligible assets in 2019. She wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. For any missing information, make reasonable assumptions. (List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round your intermediate computations and your final answers to the nearest whole dollar amount. Do not skip rows while entering in Other Expenses section of Schedule C and in Section B of Part III Form 4562.) Use the appropriate EIC Tables (6A-6, 6A-7 or 6A-8). Use the appropriate Tax Tables and Tax Rate Schedules.
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