Version B Filing Status Standard Deduction Standard Deduction Amount in 2019 Amount in 2018 Single $ 12,200 $ 12,000 Married, filing jointly 24,400 24,000 Surviving spouse 24,400 24,000 Head of household 18,350 18,000 Married, filing separately 12,200 12,000 2018 Tax Schedules: Single-Schedule X Head of household-Schedule Z If taxable of the If taxable of the income is: But not amount income is: But not amount Over- over The tax is: over- Over- over- The tax is: over 9.525 ......10% $ 13,600 ..>... 109% 9.525 38,700 952.50 + 12% 9.525 13,600 51,800 1,360.00 + 12% 13,600 38,700 82,500 4.453.50 + 22% 38,700 51.800 82 500 5,944.00 + 229% 51,800 82.500 157.500 14,089.50 + 24% 82,500 82,500 157,500 12,698.00 + 24% 82,500 157,500 200.000 32,089.50 + 32% 157,500 157,500 200,000 30,698.00 + 32% 157.500 200,000 500,000 45,689.50 + 35% 200,000 200,000 500,000 44,298.00 + 35% 200,000 500,000 150,689.50 +37% 500,000 500,000 149,298.00 + 37% 500,000 Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable of the income is: But not amount income is: But not amount Over- over The tax is: over Over over The tax is: over $ 19,050 9.525 .... 109% S 19.050 77,400 1,905.00 + 12% 19,050 9.525 38,700 952.50 + 12% 9.525 77.400 165,000 8,907.00 + 22% 77,400 38,700 82,500 4,453.50 + 22% 38.700 165,000 315,000 28,179.00 + 24% 165,000 82,500 157.500 14,089.50 + 24% 82,500 315,000 400,000 64,179.00 + 32% 315,000 157.500 200,000 32,069.50 + 32% 157,500 400,000 600,000 91,379.00 + 35% 400,000 200,000 300,000 45,689.50 + 35% 200,000 600,000 161,379.00 + 37% 600,000 300,000 80,689.50 + 37% 300,000Version B Acct. 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 825 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 5/1/191 4,500 Lottery Winnings 1,000 Child Support Received 1,200 He made the following expenditures during 2018: Medical insurance and expenses $ 450 Taxes: Property Tax on Residence 2,600 California Income Tax 1,500 Federal Income Tax Withheld 2,500 Interest on home mortgage 6,500 Cash Contributions to Charity 1,000 Traditional IRA contribution 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 1 1/30/2006 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