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Consider the following letter and answer Shadys question.

To my friendly student tax preparer:

Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year . . . whatever that means. Its been a busy year and Im a busy man, so let me give you the lowdown on my life and you can do your thing.

I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $55,000 in base salary this year. My boss gave me a $5,000 Christmas bonus check on December 22. I decided to hold on to that check and not cash it until next year, so I wont have to pay taxes on it this year. Pretty smart, huh? My jobs pretty cool. I get a lot of fringe benefits like a membership to the gym that costs $400 a year and all the Roca Cola I can drink, although I cant really drink a whole lotI figure $40 worth this year.

As part of my manager duties, I get to decide on certain things like contracts for the company. My good buddy, Eddie, runs a bottling company. I made sure that he won the bottling contract for Roca Cola for this year (even though his contract wasnt quite the best). Eddie bought me a Corvette this year for being such a good friend. The Corvette cost $50,000 and Im sure he bought it for me out of the goodness of his heart. What a great guy!

Heres a bit of good luck for the year. Upon leaving my office one day, I found $8,000 lying in the street! Well, one persons bad luck is my good luck, right?

I like to gamble a lot. I won a $27,000 poker tournament in Las Vegas this year. I also won about $5,000 over the year playing the guys at our Friday night poker game. Can you believe that I didnt lose anything this year?

Speaking of the guys, one of them hit me with his car as we were leaving the game one night. He must have been pretty ticked that he lost! I broke my right leg and my left arm. I sued the guy and got $11,000 for my medical expenses, $3,000 to pay my psychotherapist for the emotional problems I had relating to the injuries (I got really depressed!), and I won $12,000 in punitive damages. Thatll teach him that hes not so tough without his car!

Another bit of bad luck. My uncle Monty died this year. I really liked the guy, but the $200,000 inheritance I received from him made me feel a little better about the loss. I did the smart thing with the money and invested it in stocks and bonds and socked a little into my savings account. As a result, I received $600 in dividends from the stock, $200 in interest from the municipal bonds, and $300 in interest from my savings account.

My ex-wife, Alice, is still paying me alimony. Shes a lawyer who divorced me in 2015 because I was unethical or something like that. Since she was making so much money and I was unemployed at the time, the judge ruled that she had to pay ME alimony. Isnt that something? She sent me $3,000 in alimony payments this year. She still kind of likes me, though. She sent me a check for $500 as a Christmas gift this year. I didnt get her anything, though.

please help me complete page 2 of Form 1040 (through line 6) and Schedule 1 for me?

Page 2 1 2b 3b 4b 5b 6 7 8 9 10 11 12 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest Allach Forms W 2. Also attach 3a Qualified dividends. 3a b Ordinary dividends Forms) W-2G and 4a 1099-R lax was IRAS, pensions, and annuities 4a b Taxable amount withhold. Social security benefits b Taxable amount 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, Standard subtract Schedule 1, line 36, from line 6 Deduction for 8 Standard deduction or itemized deductions from Schedule A) - Single or married Tiling separately. 9 Qualified business income deduction (see instructions) $12,000 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- Married filing pointly or Qualifying 11 a Tax (see inst.) (check if any from: 1 Form(s) 8814 2 Form 4972 3 Widower) $24,000 b Add any amount from Schedule 2 and check here Head of 112 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here househoki, $18,000 13 Subtract line 12 from line 11. If zero or less, enter-O- - If you checked 14 Other taxes. Attach Schedule 4 . any box under Standard 15 Total tax. Add lines 13 and 14 deduction, see Instructions. 16 Federal income tax withheld from Forms W-2 and 1099 /17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here Direct deposit? Routing number Type: Checking Savings See Instructions. Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form1040 for instructions and the latest information. 13 14 15 16 17 18 19 20a 22 Form 1040 (2018) Page 2 1 2b 3b 4b 5b 6 7 8 9 10 11 12 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest Allach Forms W 2. Also attach 3a Qualified dividends. 3a b Ordinary dividends Forms) W-2G and 4a 1099-R lax was IRAS, pensions, and annuities 4a b Taxable amount withhold. Social security benefits b Taxable amount 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, Standard subtract Schedule 1, line 36, from line 6 Deduction for 8 Standard deduction or itemized deductions from Schedule A) - Single or married Tiling separately. 9 Qualified business income deduction (see instructions) $12,000 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- Married filing pointly or Qualifying 11 a Tax (see inst.) (check if any from: 1 Form(s) 8814 2 Form 4972 3 Widower) $24,000 b Add any amount from Schedule 2 and check here Head of 112 a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here househoki, $18,000 13 Subtract line 12 from line 11. If zero or less, enter-O- - If you checked 14 Other taxes. Attach Schedule 4 . any box under Standard 15 Total tax. Add lines 13 and 14 deduction, see Instructions. 16 Federal income tax withheld from Forms W-2 and 1099 /17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here Direct deposit? Routing number Type: Checking Savings See Instructions. Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form1040 for instructions and the latest information. 13 14 15 16 17 18 19 20a 22 Form 1040 (2018)