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Use the following information to complete Rhonda Hill's 2018 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

Use the following information to complete Rhonda Hill's 2018 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

The forms, schedules, and instructions can be found at the IRS Web site (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. Rhonda's 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 Mabel's 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.

Rhonda's birthday is 12/18/1956 and her Social Security number is 335-67-8910.

Mabel's birthday is 11/2/1943 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).

Rhonda received a Form W-2 from Carter and Associates (her employer) that contained the following information:

Line 1 Wages, tips, other compensation

$62,000

Line 2 Federal income tax withheld

6,300

Line 3 Social Security wages

62,000

Line 4 Social Security tax withheld

3,844

Line 5 Medicare wages and tips

62,000

Line 6 Medicare tax withheld

899

Line 16 State wages, tips, etc.

62,000

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

Rhonda received $250 in interest from Tulsa City bonds, $120 interest from IBM bonds, and $15 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.

Rhonda sold 200 shares of DM stock for $18 a share on June 15, 2018. She purchased the stock on December 12, 2010, for $10 a share. She also sold 50 shares of RSA stock for $15 a share on October 2, 2018. She purchased the stock for $65 a share on February 2, 2018. Stock basis amounts have been reported to the IRS.

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 810 miles for medical purposes in 2018.

Insurance premiums

$5,200

Prescription medications

800

Over-the-counter medications

250

Doctor and dentist visits

1,450

Eyeglasses

700

Physical therapy

200

Rhonda paid $4,800 in mortgage interest during the year to UCU credit union (reported to her on Form 1098). She also paid $1,800 in real property taxes during the year.

Rhonda contributed $1,750 to Heavenly Church during the year. Heavenly Church's address is 1342 Religion Way, Tulsa, Oklahoma 74101.

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