with all the information provided please do schedule SE!

Note: This problem is for the 2018 tax year. David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a self-employed consultant specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David camned consulting fees of S145.000 in 2018. He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ella's employer but have chosen not to participate in its $ 401(k) retirement plan David's cmployment-related expenses for 2018 are summarized below. Airfare SKOD Lodging 5.000 Meals (during travel status) 4.800 Entertainment 3,600 Ground transportation (c.g. limos, rental cars, and taxis) 800 Business gifts Office supplies (includes postage, overnight delivery, and copying) 1.500 The entertainment involved taking clients to sporting and musical events. The business gifts consisted of $50 gift certificates to a national restaurant. These were sent by David during the Christmas holidays to 18 of his major clients. 900 In addition, David drove his 2016 Ford Expedition 11,000 miles for business and 3,000 for personal use during 2018. He purchased the Expedition on August 15, 2015, and has always used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total $340 in 2018 When the Coles purchased their present residence in April 2015, they devoted 450 of the 3,000 square feet of living space to an office for David. The property cost $440,000 ($40,000 of which is attributable to the land) and has since appreciated in value. Expenses relating to the residence in 2018 (except for mortgage interest and property taxes, see below) are as follows: Insurance $2,600 Repairs and maintenance 900 Utilities 4.700 Painting office area; area rugs and plants in the office) 1.800 *Treat as a direct office in home expense. In terms of depreciation, the Coles use the MACRS percentage tables applicable to 39-year nonresidential real property. As to depreciable property (e.g., office furniture), David tries to avoid capitalization and uses whatever method provides the fastest write-off for tax purposes. Ella works part-time as a substitute when a hygienist is ill or on vacation or when one of the clinics is particularly busy (eg. prior to the beginning of the school year). Assumed that Ella is an employee (not an independent contractor). Besides her transportation, she must provide and maintain her own uniforms. Her expenses for 2018 appear below. Uniforms $690 State and city occupational licenses Professional journals and membership ducs in the American Dental Hygiene Association 140 Correspondence study course (taken online) dealing with teeth whitening procedures 420 Ella's salary for the year is $42.000, and her Form W-2 for the year shows income tax withholdings of $5,000 (Federal) and S1,000 (state) and the proper amount of Social Security and Medicare taxes. 3D 800 510 200,000 . Besides the items already mentioned, the Coles had the following receipts during 2018, Interest income State of Colorado general purpose bonds $2,500 IBM bonds Wells Fargo Bank 1,200 $4,500 Federal income tax refund for year 2017 Life insurance proceeds paid by Eagle Assurance Corporation Inheritance of savings account from Sarah Cole 50,000 Sales proceeds from two ATVs 9,000 For several years, the Coles' household has included David's divorced mother, Sarah, who has been claimed as their dependent. In late December 2017, Sarah unexpectedly died of coronary arrest in her sleep. Unknown to Ella and David, Sarah had a life insurance policy and a savings account (with David as the designated beneficiary of each). In 2017, the Coles purchased two ATVs for S14,000. After several near mishaps, they decided that the sport was too dangerous. In 2018, they sold the ATVs to their neighbor. Additional expenditures for 2018 include: Funeral expenses for Sarah $4,500 Taxes Real property taxes on personal residence $6,400 Colorado state income tax due (paid in April 2018 for tax year 2017) 310 6,710 Mortgage interest on personal residence (Rocky Mountain Bank) 6,600 Paid church pledge 2,400 Contributions to traditional IRAs for Ella and David (S5,500 + $5,500) 11,000 In 2018, the Coles made quarterly estimated tax payments of $6,000 (Federal) and $500 (state) for a total of $24,000 (Federal) and $2,000 (state). Relevant Social Security numbers are: David Cole 123-45-6788 Ella Cole 123-45-6787 The Coles do not want to contribute to the Presidential Election Campaign Fund. Also, they want any overpayment of tax refunded to them and not applied toward next year's tax liability. David will have a self-employment tax liability Required: Using the appropriate forms and schedules, compute the Coles' Federal income tax for 2018. Disregard the alternative minimum tax (AMT) and the various education credits Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required, round all dollar amounts to the nearest dollar. It may be necessary to complete the tax schedules before completing Form 1040. Use the included tax rates schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. please do a form 1040 year 2018 please! of the amount over - 2018 Individual Tax Rate Schedules Single If taxable income is: But not over - over - The Tax is: $9.525 ........... 10% $9.525 $38.700 $952.50 +12% $38,700 $82.500 $4453.50 + 22% $82,500 $157,500 $14089.50 +24% $157,500 $200,000 $32089.50 + 32% $200.000 $500,000 $45689.50 + 35% $500.000 $150689.50 + 37% $0 of the amount over - SO $9.525 $38,700 $82.500 $157,500 $200.000 $500.000 Head of Household If taxable income is: But not over - over - SO $13.600 $13,600 $51.800 $51,800 $82.500 $82,500 $157,500 $157,500 $200,000 $200.000 $500.000 $500.000 The Tax is: ........... 10% $1360.00 + 12% $5944.00 + 22% $12698.00 +24% $30698.00 + 32% $44298.50 + 35% $149298.00 + 37% $13,600 $51,800 $82.500 $157,500 $200,000 $500.000 of the amount Over- $0 Married filing jointly / Qualifying widow(er) If taxable income is: But not over - over - The Tax is: $19.050 ....10% $19.050 $77,400 $1905.00 + 12% $77,400 $165,000 $8907.00 + 22% $165.000 $315.000 $28179.00 +24% $315,000 $400,000 $64179.00 + 32% $400.000 $600,000 $91379.00 + 35% $600,000 $161379.00 + 37% of the amount Over- $0 $19,050 $77,400 $165.000 $315.000 $400.000 $600,000 Married filing separately If taxable income is: But not over- over - $0 $9.525 $9.525 $38.700 $38.700 $82.500 $82.500 $157,500 $157,500 $200,000 $200.000 $300,000 $300,000 The Tax is: . .. 10% $952.50 +12% $4453.50 + 22% $14089.50 +24% $32089.50 + 32% $45689.50 + 35% $80689.50 + 37% $9.525 $38.700 $82.500 $157,500 $200,000 $300,000 SCHEDULE SE (Form 1040) Self-Employment Tax Department of the Treasury Go to www.irs.gov/ ScheduleSE for instructions and the latest information Internal Revenue Service Attach to Form 1040 or Form 1040NR. Name of person with self-employment income as shown on Form 1010 or Form 1040NR Social security number of person with self-employment income OMB No 1545-0074 2018 17 Before you begin: To determine if you must file Schedule SE, see the instructions. May Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. Did you receive wages or tips in 2018? Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe self-employment tax on other eamings? Was the total of your wages and tips subject to social security or railroad retirement tier 1) tax plus your net earnings from self-employment more than $128.4007 Are you using one of the optional methods to figure your net carings see instructions 2 Did you receive a subject to social security or Medicaret that you didn't report to your employer? No Did you receive church employee income see instructional reported on Form W-2 of $100.28 or more? Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? You may use Short Schedule SE below You must use Long Schedule SE on page 2 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. 1a Net farm profit or loss) from Schedule F. line 34, and farm partnerships, Schedule K-1 (Form 1065, box 14, code A. . . . . . . . . . . . . . . . . . . . . . b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 2 Net profit or loss) from Schedule C, line 31: Schedule C-EZ, line 3; Schedule K-1 (Form 1065). box 14, code A (other than farming and Schedule K-1 Form 1065-B), box 9, code J1. Ministers and members of religious orders, see instructions for types of income to report on this ne. See Instructions for other income to report . . . . . . . . . . . . . . 3 Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . 4 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax don't file this schedule unless you have an amount on line 1b. . . . Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions 5 Self-employment tax. If the amount on line 4 is: . $128.400 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 4 (Form 10401. line 57. or Form 1040NR line 55 More than $128,400, multiply line 4 by 2.9% (0.029). Then, add $15,921.60 to the result. Enter the total here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55 6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27 For Paperwork Reduction Act Notice, see your tax return instructions Cat. No 113562 Schedule SE Form 1040) 2018 Note: This problem is for the 2018 tax year. David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a self-employed consultant specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David camned consulting fees of S145.000 in 2018. He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ella's employer but have chosen not to participate in its $ 401(k) retirement plan David's cmployment-related expenses for 2018 are summarized below. Airfare SKOD Lodging 5.000 Meals (during travel status) 4.800 Entertainment 3,600 Ground transportation (c.g. limos, rental cars, and taxis) 800 Business gifts Office supplies (includes postage, overnight delivery, and copying) 1.500 The entertainment involved taking clients to sporting and musical events. The business gifts consisted of $50 gift certificates to a national restaurant. These were sent by David during the Christmas holidays to 18 of his major clients. 900 In addition, David drove his 2016 Ford Expedition 11,000 miles for business and 3,000 for personal use during 2018. He purchased the Expedition on August 15, 2015, and has always used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total $340 in 2018 When the Coles purchased their present residence in April 2015, they devoted 450 of the 3,000 square feet of living space to an office for David. The property cost $440,000 ($40,000 of which is attributable to the land) and has since appreciated in value. Expenses relating to the residence in 2018 (except for mortgage interest and property taxes, see below) are as follows: Insurance $2,600 Repairs and maintenance 900 Utilities 4.700 Painting office area; area rugs and plants in the office) 1.800 *Treat as a direct office in home expense. In terms of depreciation, the Coles use the MACRS percentage tables applicable to 39-year nonresidential real property. As to depreciable property (e.g., office furniture), David tries to avoid capitalization and uses whatever method provides the fastest write-off for tax purposes. Ella works part-time as a substitute when a hygienist is ill or on vacation or when one of the clinics is particularly busy (eg. prior to the beginning of the school year). Assumed that Ella is an employee (not an independent contractor). Besides her transportation, she must provide and maintain her own uniforms. Her expenses for 2018 appear below. Uniforms $690 State and city occupational licenses Professional journals and membership ducs in the American Dental Hygiene Association 140 Correspondence study course (taken online) dealing with teeth whitening procedures 420 Ella's salary for the year is $42.000, and her Form W-2 for the year shows income tax withholdings of $5,000 (Federal) and S1,000 (state) and the proper amount of Social Security and Medicare taxes. 3D 800 510 200,000 . Besides the items already mentioned, the Coles had the following receipts during 2018, Interest income State of Colorado general purpose bonds $2,500 IBM bonds Wells Fargo Bank 1,200 $4,500 Federal income tax refund for year 2017 Life insurance proceeds paid by Eagle Assurance Corporation Inheritance of savings account from Sarah Cole 50,000 Sales proceeds from two ATVs 9,000 For several years, the Coles' household has included David's divorced mother, Sarah, who has been claimed as their dependent. In late December 2017, Sarah unexpectedly died of coronary arrest in her sleep. Unknown to Ella and David, Sarah had a life insurance policy and a savings account (with David as the designated beneficiary of each). In 2017, the Coles purchased two ATVs for S14,000. After several near mishaps, they decided that the sport was too dangerous. In 2018, they sold the ATVs to their neighbor. Additional expenditures for 2018 include: Funeral expenses for Sarah $4,500 Taxes Real property taxes on personal residence $6,400 Colorado state income tax due (paid in April 2018 for tax year 2017) 310 6,710 Mortgage interest on personal residence (Rocky Mountain Bank) 6,600 Paid church pledge 2,400 Contributions to traditional IRAs for Ella and David (S5,500 + $5,500) 11,000 In 2018, the Coles made quarterly estimated tax payments of $6,000 (Federal) and $500 (state) for a total of $24,000 (Federal) and $2,000 (state). Relevant Social Security numbers are: David Cole 123-45-6788 Ella Cole 123-45-6787 The Coles do not want to contribute to the Presidential Election Campaign Fund. Also, they want any overpayment of tax refunded to them and not applied toward next year's tax liability. David will have a self-employment tax liability Required: Using the appropriate forms and schedules, compute the Coles' Federal income tax for 2018. Disregard the alternative minimum tax (AMT) and the various education credits Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required, round all dollar amounts to the nearest dollar. It may be necessary to complete the tax schedules before completing Form 1040. Use the included tax rates schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. please do a form 1040 year 2018 please! of the amount over - 2018 Individual Tax Rate Schedules Single If taxable income is: But not over - over - The Tax is: $9.525 ........... 10% $9.525 $38.700 $952.50 +12% $38,700 $82.500 $4453.50 + 22% $82,500 $157,500 $14089.50 +24% $157,500 $200,000 $32089.50 + 32% $200.000 $500,000 $45689.50 + 35% $500.000 $150689.50 + 37% $0 of the amount over - SO $9.525 $38,700 $82.500 $157,500 $200.000 $500.000 Head of Household If taxable income is: But not over - over - SO $13.600 $13,600 $51.800 $51,800 $82.500 $82,500 $157,500 $157,500 $200,000 $200.000 $500.000 $500.000 The Tax is: ........... 10% $1360.00 + 12% $5944.00 + 22% $12698.00 +24% $30698.00 + 32% $44298.50 + 35% $149298.00 + 37% $13,600 $51,800 $82.500 $157,500 $200,000 $500.000 of the amount Over- $0 Married filing jointly / Qualifying widow(er) If taxable income is: But not over - over - The Tax is: $19.050 ....10% $19.050 $77,400 $1905.00 + 12% $77,400 $165,000 $8907.00 + 22% $165.000 $315.000 $28179.00 +24% $315,000 $400,000 $64179.00 + 32% $400.000 $600,000 $91379.00 + 35% $600,000 $161379.00 + 37% of the amount Over- $0 $19,050 $77,400 $165.000 $315.000 $400.000 $600,000 Married filing separately If taxable income is: But not over- over - $0 $9.525 $9.525 $38.700 $38.700 $82.500 $82.500 $157,500 $157,500 $200,000 $200.000 $300,000 $300,000 The Tax is: . .. 10% $952.50 +12% $4453.50 + 22% $14089.50 +24% $32089.50 + 32% $45689.50 + 35% $80689.50 + 37% $9.525 $38.700 $82.500 $157,500 $200,000 $300,000 SCHEDULE SE (Form 1040) Self-Employment Tax Department of the Treasury Go to www.irs.gov/ ScheduleSE for instructions and the latest information Internal Revenue Service Attach to Form 1040 or Form 1040NR. Name of person with self-employment income as shown on Form 1010 or Form 1040NR Social security number of person with self-employment income OMB No 1545-0074 2018 17 Before you begin: To determine if you must file Schedule SE, see the instructions. May Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. Did you receive wages or tips in 2018? Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe self-employment tax on other eamings? Was the total of your wages and tips subject to social security or railroad retirement tier 1) tax plus your net earnings from self-employment more than $128.4007 Are you using one of the optional methods to figure your net carings see instructions 2 Did you receive a subject to social security or Medicaret that you didn't report to your employer? No Did you receive church employee income see instructional reported on Form W-2 of $100.28 or more? Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? You may use Short Schedule SE below You must use Long Schedule SE on page 2 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. 1a Net farm profit or loss) from Schedule F. line 34, and farm partnerships, Schedule K-1 (Form 1065, box 14, code A. . . . . . . . . . . . . . . . . . . . . . b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 2 Net profit or loss) from Schedule C, line 31: Schedule C-EZ, line 3; Schedule K-1 (Form 1065). box 14, code A (other than farming and Schedule K-1 Form 1065-B), box 9, code J1. Ministers and members of religious orders, see instructions for types of income to report on this ne. See Instructions for other income to report . . . . . . . . . . . . . . 3 Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . 4 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax don't file this schedule unless you have an amount on line 1b. . . . Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions 5 Self-employment tax. If the amount on line 4 is: . $128.400 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 4 (Form 10401. line 57. or Form 1040NR line 55 More than $128,400, multiply line 4 by 2.9% (0.029). Then, add $15,921.60 to the result. Enter the total here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55 6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27 For Paperwork Reduction Act Notice, see your tax return instructions Cat. No 113562 Schedule SE Form 1040) 2018