This problem is for the 2018 tax year.

Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund.

The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2018.

Line Description Amount

Line 1 Wages, tips, other compensation $65,000.00

Line 2 Federal income tax withheld 10,500.00

Line 3 Social Security wages 65,000.00

Line 4 Social Security tax withheld 4,030.00

Line 5 Medicare wages and tips 65,000.00

Line 6 Medicare tax withheld 942.5015

Line 15 State Arizona

Line 16 State wages, tips, etc. 65,000.00

Line 17 State income tax withheld 1,954.00

During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV.

Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer.

Fees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.

On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2018, Beth sold the stock for $14 a share.

Beth bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500.

On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share.

During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenditures in connection with her software development business.

Cost of personal computer $7,000

Cost of printer 2,000

Furniture 3,000

Supplies 650

Fee paid to computer consultant 3,500

Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 179. These items were placed in service on January 15, 2018, and used 100% in her business.

Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals.

During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350.

Beth paid estimated taxes of $1,000.

Form 1040 Information

Provide the following that would be reported on the Beth Jordan's Form 1040:

2. Calculate taxable gross income.

$

3. Calculate the total deductions for AGI.

$

4. Calculate adjusted gross income.

$

5. Calculate the greater of the standard deduction or itemized deductions.

$

6. Calculate the deduction for qualified business income.

$

7. Calculate total taxable income.

$

8. Calculate the income tax liability.

$

9. Calculate the self-employment taxes due.

$

10. Calculate total withholding and tax payments.

$

11. Calculate the amount overpaid (refund):

$

12. Calculate the amount of taxes owed:

$

Schedule A Information

Provide the following that would be reported on the Beth Jordan's Schedule A:

1. Calculate the deduction allowed for medical and dental expenses.

$

2. Calculate the deduction for taxes.

$

3. Calculate the deduction for interest.

$

4. Calculate the charitable deduction allowed.

$

5. Calculate total itemized deductions:

$

Schedule B Information

Provide the following that would be reported on the Beth Jordan's Schedule B:

1. Calculate the interest amount.

$

2. Calculate the ordinary dividends.

$

Schedule C Information -Tax Practice

Provide the following that would be reported on the Beth Jordan's Schedule C for her part-time tax practice.

1. Calculate gross income:

$

2. Calculate total expenses:

$

3. Calculate net profit or loss:

$

Schedule C Information - Software programing

Provide the following that would be reported on the Beth Jordan's Schedule C for her software programming business.

1. Calculate gross income:

$

2. Calculate total expenses:

$

3. Calculate net profit or loss:

$

Schedule D and Form 8949 Information

Provide the following that would be reported on the Beth Jordan's Schedule D and Form 8949:

1. Calculate the total sales price for all transactions reported on Form 8949.

$

2. Calculate the total purchase price/basis for all transactions reported on Form 8949.

$

3. Calculate the amount and nature of the net gain or loss.

$

Schedule SE Information

Provide the following that would be reported on the Beth Jordan's Schedule SE. When computing the self-employment tax liability, do not round your calculations. Round your final answers to the nearest dollar. Use rounded amount when determining the deduction for self-employment tax.

1. Calculate self-employment liability:

$

2. Calculate deduction for self-employment tax:

$

Form 4562 Information

Provide the following that would be reported on the Beth Jordan's Form 4562:

1. Calculate the total Section 179 deduction:

Tax Planning for 2019

Beth is anticipating significant changes in her life in 2019, and she has asked you to estimate her taxable income and tax liability for 2019.

She just received word that she has been qualified to adopt a two-year-old daughter. Beth expects that the adoption will be finalized in 2019 and that she will incur approximately $2,000 of adoption expenses.

In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part-time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments.

In your computations, assume that all other income and expenditures will remain at approximately the same levels as in 2018. Use the 2018 standard deduction amounts and Tax Rate Schedules. Medical deductions are subject to a 10% reduction of AGI in 2019. Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well.

For 2019, determine the following for Beth:

Total gross income:

$

Adjusted gross income:

$

Greater of itemized deductions or standard deduction:

$

Taxable income:

$

Total income tax liability (before credits)

$

Total tax credits:

$

Net tax liability (after credits but before any tax withholdings or payments):

$