Chapter 6 In Class Assignment Keisha Jones is a client of your firm. Based on the information that follows, complete Keisha's Form 1040 and Schedule A Keisha has provided you with her forms W-2, 1099-INT, 1098-E and 1098 (following this page). She has also provided the following additional information you will need to prepare her return. I am 35 and single with no kids. I had a bunch of medical expenses: Doctor's Fees $500, Prescription Drugs $200, Vitamins and Over the Counter Allergy Medicine $250, Dental Work $1,600, and my Health Club fees $400. 1 paid a bunch of interest and taxes this year: Interest on my personal Mastercard $425, Interest on my car loan $600, Personal property tax on my car $75, Registration fees on my car $135, and I had to pay $350 in State taxes when I filed my 2017 return. I contributed a lot of money to charity this year (and have receipt documentation for all contributions). 1 gave $3,100 in cash to the March of Dimes and $300 cash to the United Way. I contributed some of my old furniture to the church, basis was $1,300 and fair market value was $350. I also contributed $200 to a family down the street who had a fire and lost everything A few other things I want to tell you about this year. Someone broke into my house and stole my brand-new bicycle, what a disaster! The total loss from the theft was $900. I also paid S150 in union dues this year, $275 to have my tax return prepared last year and $350 in investment fees. I had to pay $1,200 for new suits for my job. I'm required to wear suits every day on the job. I also spent a total of $1,300 for gas to commute to my job this year. And I spent about $400 on lottery tickets this year, didn't win anything though. 1040 u.. Individual Income Tax Retum 2018EHTEA Social seitynbe Here Your signature Spouse's signature. If a joint retum, both must sign Date aid reparer se Only Fm Forn 1040 A, eere or les b Adds treFedeal income tux whheld from Forms W-2 and 1009 Add any amount trom Sphedue 5 Refund ne 18 is more than ine 16, subtract ine 15 tom ine 18. This is the amount you everpald 20a Amount of line 19 you want relunded to you It Form 8888 in attached, ohack here eat depoit Routing number d Account number Amount Yeu w 2 Amount you owa. Subtrect ine 18 from line 15. For details on how to pay, see Fom 1040 e file 83,401.55 1,209.32 Pine Cove, AZ 86035 Keisha Sanders 1 Oak Leat Lane Pine Cove, Az 86035 AZI 2,950.00 Wage and Tax Copy B-To Be Filed With EmployesFEDERAL Tax Retum This Information is being fumighed to the Itemal Revenue Service CORRECTED Of Interest Income Pine Cove Credit Union Pine Cove, AZ 88035 Copy B For Reciplent 82-5678911 412-34-5670 This I important tax Keisha Sanders nternal Revanue Service. H you ae required to fle a 9551 Oak Leaf Lane return, a neglgence penralty or other sanction may be mposed on you hs Income tacable and the IRS Pine Cove, AZ 86035 detarmines that it has not bean nported Form 1099-INT [keep for your records) Lean Interest Staternent Federal Student Loan Program Washington, DC 20551 1098-E 12-34-0670 Kaisha Sanders 9551 Oak Leaf Lane Mortgage Interest First National Bank of Pine Cove Pine Cove, AZ 86035 Fon 1098 82-8549871 412-34-5670 8,100.00 Keisha Sanders 9551 Oak Leat Lane Pine Cove, AZ 86045 Real Estate Taxes Paid $1,700.00 Fom (keep for your records) www.irs.goviomn 1098 Itemized Deductions 2018 he latest Form 1040) Caution Do not inckde expenes rambursed or paid by others. 1 Modical and dental 2 Enter amount from Fom 1040, ine 7 Expenses Mately ine 2 by 7.5% 0.079 8 State and local taxes You State and local income taxes or genveral saleo taxea. You may Inckude either income taxes or general salos taxes on ine but not both. t you elect to inckude gereral sales taxes inatead of income taxes, check this box b State and kocal real estate taxes (see instructions).. e State and local personal property taxes dAdd lines Sa through 5 Enter the smaller of line Sd or $10,000 ($5,000married filng oorou 7 Add lines Se and 6 Interest You 8 Home mortgage interest and points. If you didn't use all of your Paid home mortgage loans) to buy, build, or improve your home, see instructions and check this box Home mortgage intorest and points reported to you on Form 1098 b Home mortgage Interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see nstructions and show that person's name, identitying no., and address Points not reported to you on Form 1098. See instructions for special rules. . d Reserved e Add linee 8a through 8 Investment interest. Atach Form 4952 if required. See 8d 10 Add ines 8e and 9 10 Gifts to 11 Gits by cash or check. If you made any gift of $250 or more, Charity see instructions 12 Other than by cash or check. It any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. t io13 Carryover from prior yoar 14 Add ines 11 through 13 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other temized 16 Other-from list in instructions. List type and amount Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on 16 Itemized Form 1040, line 8 Deductions 18 If you elect to itemize deductions even though they are less than your standard 17 deduction, check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040. Cat. No. 171450 Schedule A (Form 1040 90 SCHEDULE Additional Income and Adjustments to Income 2018 and local Income taxes Binhoes nome or Oossk Attach Schedde C or C-62 ain or (oss), Attach Schedule D itrequired. If not required, check here gains or lossenj Attach Form 4797 12 15a Reserved 16a Reeerved 17 Rental real etate, royaties, partnerships,S corporations, trusts, otc. Attach Schedule E 17 18 Farm income or (oss) Attach Schedule F 19 Unemploymert tcompensation 20a Reserved 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any acjustments to Adjustments 3 Educator expenses to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 26 Health savings acoount deduction. Attach Form 888925 Moving expenses for members of the Armed Forces. Attach Fom 3903 27 Deductible part of sell-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction 30 Penalty on early withdrawal of savings 31a Alimony paid b Recipient's SSN 32 IRA deduction 33 Student loan interest deduction 34 Reserved. 35 Reserved For Paperwork Reduction Act Notice, see your tax return instruetions. Ca. No.71479 Schedule 1 (Fom 1040) 2018 Chapter 6 In Class Assignment Keisha Jones is a client of your firm. Based on the information that follows, complete Keisha's Form 1040 and Schedule A Keisha has provided you with her forms W-2, 1099-INT, 1098-E and 1098 (following this page). She has also provided the following additional information you will need to prepare her return. I am 35 and single with no kids. I had a bunch of medical expenses: Doctor's Fees $500, Prescription Drugs $200, Vitamins and Over the Counter Allergy Medicine $250, Dental Work $1,600, and my Health Club fees $400. 1 paid a bunch of interest and taxes this year: Interest on my personal Mastercard $425, Interest on my car loan $600, Personal property tax on my car $75, Registration fees on my car $135, and I had to pay $350 in State taxes when I filed my 2017 return. I contributed a lot of money to charity this year (and have receipt documentation for all contributions). 1 gave $3,100 in cash to the March of Dimes and $300 cash to the United Way. I contributed some of my old furniture to the church, basis was $1,300 and fair market value was $350. I also contributed $200 to a family down the street who had a fire and lost everything A few other things I want to tell you about this year. Someone broke into my house and stole my brand-new bicycle, what a disaster! The total loss from the theft was $900. I also paid S150 in union dues this year, $275 to have my tax return prepared last year and $350 in investment fees. I had to pay $1,200 for new suits for my job. I'm required to wear suits every day on the job. I also spent a total of $1,300 for gas to commute to my job this year. And I spent about $400 on lottery tickets this year, didn't win anything though. 1040 u.. Individual Income Tax Retum 2018EHTEA Social seitynbe Here Your signature Spouse's signature. If a joint retum, both must sign Date aid reparer se Only Fm Forn 1040 A, eere or les b Adds treFedeal income tux whheld from Forms W-2 and 1009 Add any amount trom Sphedue 5 Refund ne 18 is more than ine 16, subtract ine 15 tom ine 18. This is the amount you everpald 20a Amount of line 19 you want relunded to you It Form 8888 in attached, ohack here eat depoit Routing number d Account number Amount Yeu w 2 Amount you owa. Subtrect ine 18 from line 15. For details on how to pay, see Fom 1040 e file 83,401.55 1,209.32 Pine Cove, AZ 86035 Keisha Sanders 1 Oak Leat Lane Pine Cove, Az 86035 AZI 2,950.00 Wage and Tax Copy B-To Be Filed With EmployesFEDERAL Tax Retum This Information is being fumighed to the Itemal Revenue Service CORRECTED Of Interest Income Pine Cove Credit Union Pine Cove, AZ 88035 Copy B For Reciplent 82-5678911 412-34-5670 This I important tax Keisha Sanders nternal Revanue Service. H you ae required to fle a 9551 Oak Leaf Lane return, a neglgence penralty or other sanction may be mposed on you hs Income tacable and the IRS Pine Cove, AZ 86035 detarmines that it has not bean nported Form 1099-INT [keep for your records) Lean Interest Staternent Federal Student Loan Program Washington, DC 20551 1098-E 12-34-0670 Kaisha Sanders 9551 Oak Leaf Lane Mortgage Interest First National Bank of Pine Cove Pine Cove, AZ 86035 Fon 1098 82-8549871 412-34-5670 8,100.00 Keisha Sanders 9551 Oak Leat Lane Pine Cove, AZ 86045 Real Estate Taxes Paid $1,700.00 Fom (keep for your records) www.irs.goviomn 1098 Itemized Deductions 2018 he latest Form 1040) Caution Do not inckde expenes rambursed or paid by others. 1 Modical and dental 2 Enter amount from Fom 1040, ine 7 Expenses Mately ine 2 by 7.5% 0.079 8 State and local taxes You State and local income taxes or genveral saleo taxea. You may Inckude either income taxes or general salos taxes on ine but not both. t you elect to inckude gereral sales taxes inatead of income taxes, check this box b State and kocal real estate taxes (see instructions).. e State and local personal property taxes dAdd lines Sa through 5 Enter the smaller of line Sd or $10,000 ($5,000married filng oorou 7 Add lines Se and 6 Interest You 8 Home mortgage interest and points. If you didn't use all of your Paid home mortgage loans) to buy, build, or improve your home, see instructions and check this box Home mortgage intorest and points reported to you on Form 1098 b Home mortgage Interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see nstructions and show that person's name, identitying no., and address Points not reported to you on Form 1098. See instructions for special rules. . d Reserved e Add linee 8a through 8 Investment interest. Atach Form 4952 if required. See 8d 10 Add ines 8e and 9 10 Gifts to 11 Gits by cash or check. If you made any gift of $250 or more, Charity see instructions 12 Other than by cash or check. It any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. t io13 Carryover from prior yoar 14 Add ines 11 through 13 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other temized 16 Other-from list in instructions. List type and amount Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on 16 Itemized Form 1040, line 8 Deductions 18 If you elect to itemize deductions even though they are less than your standard 17 deduction, check here For Paperwork Reduction Act Notice, see the Instructions for Form 1040. Cat. No. 171450 Schedule A (Form 1040 90 SCHEDULE Additional Income and Adjustments to Income 2018 and local Income taxes Binhoes nome or Oossk Attach Schedde C or C-62 ain or (oss), Attach Schedule D itrequired. If not required, check here gains or lossenj Attach Form 4797 12 15a Reserved 16a Reeerved 17 Rental real etate, royaties, partnerships,S corporations, trusts, otc. Attach Schedule E 17 18 Farm income or (oss) Attach Schedule F 19 Unemploymert tcompensation 20a Reserved 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any acjustments to Adjustments 3 Educator expenses to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 26 Health savings acoount deduction. Attach Form 888925 Moving expenses for members of the Armed Forces. Attach Fom 3903 27 Deductible part of sell-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction 30 Penalty on early withdrawal of savings 31a Alimony paid b Recipient's SSN 32 IRA deduction 33 Student loan interest deduction 34 Reserved. 35 Reserved For Paperwork Reduction Act Notice, see your tax return instruetions. Ca. No.71479 Schedule 1 (Fom 1040) 2018