unty latge income, the McCarthys provide over 50 percent of his sup- port and claim Jack as a dependent in 2019. Jack's mailing address is 100 Duval Street, Apt. #B12, Key West, FL 33040. Richard's Social Security number is 100-10-9090. Use Form 1040, Schedule B, Form 8615, and the Tax Computation Worksheet from the Form 8615 instructions to compute Jack's 2019 income tax. Richard McCarthy (born 2/14/1965; Social Security number 100-10-9090) and Christine McCarthy (born 6/1/1967; Social Security number 101-21-3434) have a 19-year-old son (born 10/2/2000 Social Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year- old daughter (Social Security number 444-23-1212), Justine, that lives with them. The McCarthys can claim a $2,000 child tax credit for Justine and a $500 other dependent credit for Jack. Richard is the CEO at a paper company. His 2019 Form W-2: OMB No 1545.COLO PASTI Use e 100-10-9090 b Employer identification number 32-5656567 e Employer's name, address and ZIP code Mufflin-Dunder Paper 302 Lackawanna Ave. Scranton, PA 18503 230,500.00 132.900.00 5 Medo 230,500.00 7 Soci security tips tille www. novio met with 56,000.00 Socii security tax werheid 8.239.80 3,616.75 d Control number 10 Dedert care benefits 1 Sternctions or Box 12 Norged plans e Employee's first name and last name Richard McCarthy 32 Sleepy Hollow Rd. Clarks Summit, PA 18411 18 Local wag 1 Employee's address and ZIP code 15 Sate Employer's state ID number PAL. 1234824 16 State wages, tos, 230,500.00 17 Sme income tax 13.800.00 Department of the Treasury 2019 W-2 Wage and Tax Form L Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service 5 ter 6. Accounting Periods and Other Taxes Christine is an optometrist and operates her own practice ("The Eyes of March) town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Sum PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Gross sales $270,541 8,994 Returns Inventory: Beginning inventory $ 24,000 Purchases 120,000 Ending inventory 30,000 Rent 24,000 Insurance 11,019 Professional fees 2,998 Payroll 37,113 Payroll taxes 2,877 Utilities 3,961 Office expenses 1,995 Depreciation 5,000 The McCarthys have a nanny/housekeeper they paid $12,600 during 2019. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemploy- ment tax of $378 in 2019. Christine received a 2019 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,467. Note that McCarthys reasonably allocate $761 to state income tax expense for purposes of the Net Investment Income tax. The McCarthys received a Form 1099-G from Pennsylvania that reported a $451 state income tax refund from 2018. The McCarthys itemized deductions in 2018 and had $14,223 of state income tax expense that was limited to $10,000. The McCarthys paid the following in 2019: Home mortgage interest $15,661 Property taxes 5,436 Estimated state income tax payments 2,400 Estimated Federal income tax payments 10,500 Charitable contributions (all cash) 7,600 Required: Complete the McCarthys' federal tax return for 2019. Use Form 1040, Schedule 1, Schedule 2, Schedule 3, Schedule A Schedule B, Schedule C) Schedule H. Schedule SE, Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any missing data and ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation. ** Laulys pard the TOIUVINIS - Home mortgage interest Property taxes Estimated state income tax payments Estimated Federal income tax payments Charitable contributions (all cash) $15,661 5,436 2,400 10,500 7,600 Required: Complete the McCarthys' federal tax return for 2019. Use Form 1040. Schedule 1, Schedule 2, Schedule 3, Schedule A, Schedule B, Schedule C. Schedule H, Schedule SE, Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any missing data and ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation. unty latge income, the McCarthys provide over 50 percent of his sup- port and claim Jack as a dependent in 2019. Jack's mailing address is 100 Duval Street, Apt. #B12, Key West, FL 33040. Richard's Social Security number is 100-10-9090. Use Form 1040, Schedule B, Form 8615, and the Tax Computation Worksheet from the Form 8615 instructions to compute Jack's 2019 income tax. Richard McCarthy (born 2/14/1965; Social Security number 100-10-9090) and Christine McCarthy (born 6/1/1967; Social Security number 101-21-3434) have a 19-year-old son (born 10/2/2000 Social Security number 555-55-1212), Jack who is a full-time student at the University of Key West. The McCarthys also have a 12-year- old daughter (Social Security number 444-23-1212), Justine, that lives with them. The McCarthys can claim a $2,000 child tax credit for Justine and a $500 other dependent credit for Jack. Richard is the CEO at a paper company. His 2019 Form W-2: OMB No 1545.COLO PASTI Use e 100-10-9090 b Employer identification number 32-5656567 e Employer's name, address and ZIP code Mufflin-Dunder Paper 302 Lackawanna Ave. Scranton, PA 18503 230,500.00 132.900.00 5 Medo 230,500.00 7 Soci security tips tille www. novio met with 56,000.00 Socii security tax werheid 8.239.80 3,616.75 d Control number 10 Dedert care benefits 1 Sternctions or Box 12 Norged plans e Employee's first name and last name Richard McCarthy 32 Sleepy Hollow Rd. Clarks Summit, PA 18411 18 Local wag 1 Employee's address and ZIP code 15 Sate Employer's state ID number PAL. 1234824 16 State wages, tos, 230,500.00 17 Sme income tax 13.800.00 Department of the Treasury 2019 W-2 Wage and Tax Form L Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service 5 ter 6. Accounting Periods and Other Taxes Christine is an optometrist and operates her own practice ("The Eyes of March) town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Sum PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information: Gross sales $270,541 8,994 Returns Inventory: Beginning inventory $ 24,000 Purchases 120,000 Ending inventory 30,000 Rent 24,000 Insurance 11,019 Professional fees 2,998 Payroll 37,113 Payroll taxes 2,877 Utilities 3,961 Office expenses 1,995 Depreciation 5,000 The McCarthys have a nanny/housekeeper they paid $12,600 during 2019. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemploy- ment tax of $378 in 2019. Christine received a 2019 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,467. Note that McCarthys reasonably allocate $761 to state income tax expense for purposes of the Net Investment Income tax. The McCarthys received a Form 1099-G from Pennsylvania that reported a $451 state income tax refund from 2018. The McCarthys itemized deductions in 2018 and had $14,223 of state income tax expense that was limited to $10,000. The McCarthys paid the following in 2019: Home mortgage interest $15,661 Property taxes 5,436 Estimated state income tax payments 2,400 Estimated Federal income tax payments 10,500 Charitable contributions (all cash) 7,600 Required: Complete the McCarthys' federal tax return for 2019. Use Form 1040, Schedule 1, Schedule 2, Schedule 3, Schedule A Schedule B, Schedule C) Schedule H. Schedule SE, Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any missing data and ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation. ** Laulys pard the TOIUVINIS - Home mortgage interest Property taxes Estimated state income tax payments Estimated Federal income tax payments Charitable contributions (all cash) $15,661 5,436 2,400 10,500 7,600 Required: Complete the McCarthys' federal tax return for 2019. Use Form 1040. Schedule 1, Schedule 2, Schedule 3, Schedule A, Schedule B, Schedule C. Schedule H, Schedule SE, Form 8959, and Form 8960 to complete this tax return. Make realistic assumptions about any missing data and ignore any alternative minimum tax. Do not complete Form 4952, which is used for depreciation