Comprehensive Problem 5-1

John Williams (birthdate August 2, 1974) is a single taxpayer. John's earnings and withholdings as the manager of a local casino for 2018 are reported on his Form W-2.

John received Form 1098 from the Reno Bank & Trust.

John's other income includes interest on a savings account at Nevada National Bank of $13,700.

John pays his ex-wife, Sarah McLoughlin, $3,900 per month in accordance with their 2012 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,725 per month. His ex-wife's Social Security number is 554-44-5555.

In 2018, John purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,660, which exceeds the estimated amount per the IRS tables.

John participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $125 in 2018.

During the year, John paid the following amounts (all of which can be substantiated):

Credit card interest	$1,760
Auto loan interest	4,300
Auto insurance	900
Contribution to IRA	5,500
Property taxes on personal residence	2,640
Contributions to HSA	2,800
Income tax preparation fee	900
Charitable contributions (all cash):
Boy Scouts	1,350
St. Matthews Church	3,100
U. of Nevada (Reno) Medical School	26,900
Nevada Democratic Party	250
Fund-raising dinner for the Reno Auto Museum	100
(value of dinner is $25)

Required: Complete John's Form 1040 and Schedules 1, A and B.

• Schedule A line 11. Gift amounts