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Use the following information to complete Rhonda Hills 2018 federal income tax return. If any information is missing, use reasonable assumptions to fill in the

Use the following information to complete Rhonda Hills 2018 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhondas older cousin Mabel Wright lives with Rhonda in the home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabels support. Rhonda also provided the following information: Rhonda does not want to contribute to the presidential election campaign. Rhonda lives at 1234 Blue Ridge Way, Tulsa, Oklahoma 74101. Rhondas birthday is 12/18/1953 and her Social Security number is 335-67-8910. Mabels birthday is 11/2/1945 and her Social Security number is 566-77-8899. Rhonda does not have any foreign bank accounts or trusts. Rhonda has qualifying insurance for purposes of the Affordable Care Act (ACA). 2. Rhonda received a Form W-2 from Carter and Associates (her employer) that contained the following information: Line 1 Wages, tips, other compensation $72,000 Line 2 Federal income tax withheld 9,300 Line 3 Social Security wages 72,000 Line 4 Social Security tax withheld 4,464 Line 5 Medicare wages and tips 72,000 Line 6 Medicare tax withheld 1,044 Line 16 State wages, tips, etc. 72,000 Line 17 State income tax 2,700 Carter and Associates address is 1234 CPA Way Tulsa, Oklahoma 74101; its FEIN is 91:0001002; and its State ID number is 123456678 3. Rhonda received $250 in interest from Tulsa City bonds, $1200 interest from IBM bonds, and $150 from her savings account at UCU Credit Union. She also received a $460 dividend from Huggies Company and $500 from Bicker Corporation. Both dividends are qualified dividends. 4. The following is a record of the medical expenses that Rhonda paid for herself during the year. The amounts reported are amounts she paid in excess of insurance reimbursements. Rhonda drove 210 miles for medical purposes in 2018. Insurance premiums $3,700 Prescription medications 1,000 Over-the-counter medications 250 Doctor and dentist visits 1,450 Eyeglasses 300 Physical therapy 200 5. Rhonda paid $3,800 in mortgage interest during the year to UCU credit union (reported to her on Form 1098). She also paid $2,200 in real property taxes during the year.

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Form 1040 (2018) Page 2 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a 3a 4a 5a b Taxable interest b Ordinary dividends b Taxable amount b Taxable amount 2b 3b 4b 5b Atach Form/s W-2.Also attach 3a Qualified dividends Forms) W-2G and 099-R if tax was 4a IRAs, pensions, 5a Social security benefits 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, and annuities subtract Schedule 1, line 36, from line 6 Standard deduction or itemized deductions (from Schedule A) Qualified business income deduction (see instructions) Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-0- a Tax (see inst.) b Add any amount from Schedule 2 and check here a Child tax credit/credit for other dependents Subtract line 12 from line 11. If zero or less, enter -0- Deduction for- Single or married fling separately $12,000 Married filing ointly or Qualitying 11 8 9 10 10 check if any from:Form/s) 8814 2 Form 4972 3 b Add any amount from Schedule 3 and check here 12 12 Head of $18,000 any box 13 13 14 15 16 If you checked 14 Other taxes. Attach Schedule 4 15 16 17 Total tax. Add lines 13 and 14 Federal income tax withheld from Forms W-2 and 1099 Refundable credits: a EIC (see inst.) Add any amount from Schedule 5 b Sch. 8812 c Form 8863 18 Add lines 16 and 17. These are 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 17 18 19 20a are your total Direct deposit? See instructions. b Routing number c Type: Checking d Account number 21 Amount of line 19 you want to 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 Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2018

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