Use the following information to complete Jonathan Martins 2019 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. You might need the following forms and schedules in addition to form 1040 to complete the assignment: Schedule 1 (other income and deductions), Schedule 2 (other taxes such as SE Tax), possibly Schedule A (for itemized deductions), Schedule B (interest and dividend income), Schedule C (for business income and deductions), Schedule SE (if there is net self-employment income) and Form 8995 (if you have Qualified Income Business Deduction). The instructions for the forms are very helpful and can be downloaded from the IRS website. Jonathan Martin was married, however, his wife Jackie passed away in 2017. They have two children (twins), Jill and Johnny. Jonathan worked as the General Manager at Hilton Hotel in Las Cruces, NM earning a salary of $89,800. He also did some accounting/bookkeeping work on the side and reported revenues of $14,800. Jonathan received $1,800 in qualified dividends from Chase Investments and $3,200 ordinary dividends from Zion Records. He also received $1,880 interest income from LC Credit Union. He also received a $552 refund of his New Mexico 2018 state income taxes. Jonathan itemized his deductions in the prior year and his itemized deductions were over the standard deduction amount last year by $800. Jonathan won $3,250 in gambling pools at work for college basketball. Lastly, he received $10,000 from his wifes life insurance policy that paid out in 2019. DO NOT prepare any state income tax returns The Martins live at 2301 Tears Trail Circle Santa Teresa, NM 88008 Jonathans birthday is 11/23/1982 and his Social Security number is 575-22-5546 Jills birthday is 10/30/2009 and her Social Security number is 577-53-9888 Johnnys birthday is 10/30/2009 and his Social Security number is 577-54-1572 The Martins do not have any foreign bank accounts or trusts Jonathan did file forms 1099 (contract labor) for his consulting services as required and he uses the cash method of accounting for his business The Martins had health insurance coverage all year provided by Hilton Hotel The Martins want you to determine the best filing status for their family Determine if the Martins get the child tax credit The qualified business income deduction available to the Martins is $608

The Martin's reported the following activities and payments during the year 2019 Activity Jonathan's W2 Information: Salary Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 89,800 8,350 2,940 5,568 1,302 $ Business Activity Jonathan's Bookkeeping Income Business office expense Contract labor expense Business insurance expense Airfare to fly to business conference Car rental fee at conference Business meals expense Hotel Expenses for business conference 14,800 1,902 4,000 2,681 1,100 338 640 1,190 Reimbursement for employee business expenses (security badges and parking decals) he paid out of pocket. He was required to provide documentation for his expenses to his employer $ 370 Gambling losses for the year 4000 Real estate taxes paid on residence 5,240 Home mortgage interest paid 9,817 (original loan $450,000 in 2013, outstanding balance of $395,000) Home-equity loan interest paid 2,980 Jonathan used the home equity loan to pay for his trip to Las Vegas to gamble. Interest was paid to LFCU (outstanding balance of $55,000) Cash contributions to St Matthew's church (Jonathan has receipts) 2,950 Donation of used furniture to Goodwill, 1233 S. Good St, Las Cruces, NM 88002. The furniture had a fair market value of $210 and was purchased for $1,993, on 6/11/2013 Medical expenses 786 The Martin's reported the following activities and payments during the year 2019 Activity Jonathan's W2 Information: Salary Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 89,800 8,350 2,940 5,568 1,302 $ Business Activity Jonathan's Bookkeeping Income Business office expense Contract labor expense Business insurance expense Airfare to fly to business conference Car rental fee at conference Business meals expense Hotel Expenses for business conference 14,800 1,902 4,000 2,681 1,100 338 640 1,190 Reimbursement for employee business expenses (security badges and parking decals) he paid out of pocket. He was required to provide documentation for his expenses to his employer $ 370 Gambling losses for the year 4000 Real estate taxes paid on residence 5,240 Home mortgage interest paid 9,817 (original loan $450,000 in 2013, outstanding balance of $395,000) Home-equity loan interest paid 2,980 Jonathan used the home equity loan to pay for his trip to Las Vegas to gamble. Interest was paid to LFCU (outstanding balance of $55,000) Cash contributions to St Matthew's church (Jonathan has receipts) 2,950 Donation of used furniture to Goodwill, 1233 S. Good St, Las Cruces, NM 88002. The furniture had a fair market value of $210 and was purchased for $1,993, on 6/11/2013 Medical expenses 786