St. Joseph's College Fall 2019 Tax Return Assignment #3 COURSE: ACC 215- Principles of Federal Taxation INSTRUCTOR: Frank J. Faber, CPA, MST Prepare a 2018 individual federal income tax return. Use the 2018 forms, all entries and calculates must be based on 2018 tax law. Use your name as the taxpayer name; do not use your social security number. Base the return on the following facts: Married couple ages 46 and 47 with good eyesight. No dependents. Taxpayers had health insurance all year. Husband is an employee as a Financial Consultant, he is paid as follows: o Base salary $92,000 o Employer pays 100% of health insurance ($12,000 per year) o Federal tax withheld $13,300 o NYS tax withheld $6,400 Wife is a self-employed Bookkeeper. For 2018 she collected $108,200 in fees. She paid the following business related

expenses o Advertising $4,000 o Insurance $2,500 o Office expenses $4,750 o Office Rent $18,000 o Supplies $900 Utilities $2,600 o Husband Student Loan Interest $2,975 o She billed and was unable to collect $950 from a client o 3-1-18 purchased and placed in service $4,200 of computer equipment. Wife also is a 25% owner of an S corporation. It is a domestic manufacturer. Her share of the profit for the year is $40,000. Interest received on savings account $102. They made the following payments during 2018: o Medical expenses paid $3,320 o Real estate taxes on home $9,700 o Mortgage Interest on home $5,800 o Donated $925 cash to a qualified charity o $1,200 for tax preparation, 2017 return. $800 was for the business and $400 for the rest of the return. o $1,000 for union dues o Paid 4 federal estimated tax payments, $4,850 each You will need the following forms: 1040 Schedule C Schedule E Schedule SE Schedules, 1,4,5 Form 4562 Schedule A ??? o The Schedule C activity and the S corporation activity are eligible for the QBI deduction Required Prepare a federal return (no state return required)

federal tax