David and Darlene Jasper have one child, Sam, who is 6 years old (birthdate July 1, 2012). The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David’s Social Security number is 577-11-3311, Darlene’s is 477-98-4731, and Sam’s is 589- 22-1142. David’s birthdate is May 29, 1985 and Darlene’s birthday is January 31, 1987. David and Darlene’s earnings and withholdings for 2018 are: 

David: 

Earnings from Apple Company (office manager).....................................$26,500 

Federal income tax withheld 2,800 State income tax withheld .................1,050 

Darlene: 

Earnings from Rose Company (perfume tester)......................................$25,200 

Federal income tax withheld 2,650 State income tax withheld .................1,000

Their other income includes interest from Pine Tree Savings and Loan of $1,900. Other information and expenditures for 2018 are as follows:

Interest: 

On home acquisition mortgage.................................................................$11,200 

Credit card...........................................................................................................925 

Taxes: 

Property taxes on personal residence 1,300 State income taxes paid in 2018 (for 2017)...............315 

Contribution (with written acknowledgement) to church.........................1,020 

Medical insurance 675 Medical and dental expenses...............................5,785 

Income tax return preparation fee paid in 2018............................................200 

Actual general state sales tax for 2018........................................................1,016 

Payment of union dues.....................................................................................225

David and Darlene received the following letter from Sam’s daycare provider:

KIDDIECARE INC.

10250 Sabta Monica Blvd. 

Los Angels, CA 90067

January 14,2019 

4639 Honeysuckle Lane

Los Angeles, CA 90248

Dear David and Darlene, 

Thank you for your patronage of our daycare center with your child, Sam Jasper, in 2018. This statement severs as a record of the cost daycare services we provided during the calendar year 2018:

Sincerely, 

/s/ Marcia Clarke 

Marcia Clarke 

Director, KidderCare Inc. 

In 2018, David lost his job. David paid for one month of insurance out-of-pocket and then the family went without insurance for September through December 2018. They are not eligible for any exemptions from health care coverage. 

Required: 

Complete the Jaspers’ federal tax return for 2018. Use Form 1040, Schedule 3, Schedule 4, Schedule A, Schedule B, Form 2441, the Shared Responsibility Payment Worksheet, and the Flat Dollar Amount Worksheet (as needed). Make realistic assumptions about any missing data.

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Child Dates of Service 1/1/2018 – 08/25/2018 Amount $3,500.00 Sam Jasper