Version B Acet. 3210 Tax Preparation Problem Eddie Sanchez was divorced in 2015. He lives at 131 Mason Street, Los Angeles, California 90032. His social security number is 332-32-3334. During 2018 he received the following: Wages $ 78,000 Interest Income: Bank of America 275 Certificate of deposit - Comerica Wells Fargo Bank 100 Inheritance from distant relative 22.000 Loss on sale of ABC stock purchased 4/15/15 Cost $8,500; Sale Price $4,000 on 5/1/19' 4,500 Lottery Winnings 1,000 Child Support Received 1,200 825 $ 450 He made the following expenditures during 2018: Medical insurance and expenses Taxes: Property Tax on Residence California Income Tax Federal Income Tax Withheld Interest on home mortgage Cash Contributions to Charity Traditional IRA contribution 2.600 1,500 2,500 6,500 1,000 5.000 Eddie has two children living with him: Reggie, his 12-year-old son, and Maria, his 21-year-old daughter. Eduardo, a long-time friend, also lives with him. Maria attends Cal State LA (Accounting Major!). She has no income other than a scholarship. Eduardo fell on hard times when he lost his job in May of 2019. Being a good friend, Eddie immediately offered him a place to stay until he got back on his feet. Eduardo had no income outside of his construction job. Social security numbers and dates of birth are: Reggie Sanchez 111-22-3333 11/30/2006 Maria Sanchez 222-54-4444 5/16/1997 Eduardo Ramirez 545-66-4949 10/14/1971 Download the following forms 2018 from IRS.gov: Form 1040 Form 1040, Schedule 1 Form 1040, Schedule D The sale was on a Form 1099-B and basis was reported to the IRS. 50 shares of ABC stock were sold. Version B Filing Status Single Married, filing jointly Surviving spouse Head of household Married, filing separately Standard Deduction Amount in 2019 $ 12,200 24,400 24,400 18,350 12,200 Standard Deduction Amount in 2018 $ 12,000 24,000 24,000 18,000 12,000 2018 Tax Schedules: Single-Schedule taxable $ 0 $ 9.525 100 $ 952.50 +12 9,525 4,453.50 +225 700 157.500 14,089.50.24 82.500 200.000 2.0095032 157.500 45. SO 200.000 0.000 150,689.5037 500.000 Married fling jointly or Qualifying widower) Schedule Y-1 Head of household-Schedule Z taxable income But not The taxi $ 11,600 109 13.600 51.800 S 350.001 2.500 5.940.00224 82.500 157.500 12.698.00 24% 200.000 30.698.00 200.000 500.000 90.003 500.000 149.290.00 Married filing separately-Schedule Y-2 11.600 51.800 82.500 157.500 200.000 500,000 If taxable Inco incones The taxis The taxi 19.050 38.700 9 :52 51.0 77.400 165.000 3. 400.000 600.000 $ 1.505.0012% 8.907.00 - 22 28.179.000 00 165.000 157.500 250g 165.000 315.000 400.000 600 $ 95250 1 4453.50-221 14. 0 0 201 12.09.50 - 45. 6 3 MO 100 000 200.000 400.000 0 000 200.000 100.000 16 .00 Version B Acet. 3210 Tax Preparation Problem Eddie Sanchez was divorced in 2015. He lives at 131 Mason Street, Los Angeles, California 90032. His social security number is 332-32-3334. During 2018 he received the following: Wages $ 78,000 Interest Income: Bank of America 275 Certificate of deposit - Comerica Wells Fargo Bank 100 Inheritance from distant relative 22.000 Loss on sale of ABC stock purchased 4/15/15 Cost $8,500; Sale Price $4,000 on 5/1/19' 4,500 Lottery Winnings 1,000 Child Support Received 1,200 825 $ 450 He made the following expenditures during 2018: Medical insurance and expenses Taxes: Property Tax on Residence California Income Tax Federal Income Tax Withheld Interest on home mortgage Cash Contributions to Charity Traditional IRA contribution 2.600 1,500 2,500 6,500 1,000 5.000 Eddie has two children living with him: Reggie, his 12-year-old son, and Maria, his 21-year-old daughter. Eduardo, a long-time friend, also lives with him. Maria attends Cal State LA (Accounting Major!). She has no income other than a scholarship. Eduardo fell on hard times when he lost his job in May of 2019. Being a good friend, Eddie immediately offered him a place to stay until he got back on his feet. Eduardo had no income outside of his construction job. Social security numbers and dates of birth are: Reggie Sanchez 111-22-3333 11/30/2006 Maria Sanchez 222-54-4444 5/16/1997 Eduardo Ramirez 545-66-4949 10/14/1971 Download the following forms 2018 from IRS.gov: Form 1040 Form 1040, Schedule 1 Form 1040, Schedule D The sale was on a Form 1099-B and basis was reported to the IRS. 50 shares of ABC stock were sold. Version B Filing Status Single Married, filing jointly Surviving spouse Head of household Married, filing separately Standard Deduction Amount in 2019 $ 12,200 24,400 24,400 18,350 12,200 Standard Deduction Amount in 2018 $ 12,000 24,000 24,000 18,000 12,000 2018 Tax Schedules: Single-Schedule taxable $ 0 $ 9.525 100 $ 952.50 +12 9,525 4,453.50 +225 700 157.500 14,089.50.24 82.500 200.000 2.0095032 157.500 45. SO 200.000 0.000 150,689.5037 500.000 Married fling jointly or Qualifying widower) Schedule Y-1 Head of household-Schedule Z taxable income But not The taxi $ 11,600 109 13.600 51.800 S 350.001 2.500 5.940.00224 82.500 157.500 12.698.00 24% 200.000 30.698.00 200.000 500.000 90.003 500.000 149.290.00 Married filing separately-Schedule Y-2 11.600 51.800 82.500 157.500 200.000 500,000 If taxable Inco incones The taxis The taxi 19.050 38.700 9 :52 51.0 77.400 165.000 3. 400.000 600.000 $ 1.505.0012% 8.907.00 - 22 28.179.000 00 165.000 157.500 250g 165.000 315.000 400.000 600 $ 95250 1 4453.50-221 14. 0 0 201 12.09.50 - 45. 6 3 MO 100 000 200.000 400.000 0 000 200.000 100.000 16 .00