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):

complete John's form 1040 and Schedule A