Note: This problem is for the 2018 tax year Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa 1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund. Amount Description Wages, tips, other compensation Federal income tax withheld Social Security wages Social Security tax withheld Medicare wages and tips Medicare tax withheld State State wages, tips, etc. State income tax withheld Line $65,000.00 10,500.00 65,000.00 4,030.00 65,000.00 942.50 Arizona 65,000.00 1,954.00 16 During the year, Beth received from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT interest of $1,300 from Arizona Federal Savings and Loan and $400 She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and 0 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099- DIV received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer Fees earned from her part-time tax practice in 2018 totaled $ 3,800. She paid $600 to have the tax shares of Gray Corporation common stock for S17.60 a share. On February On September 12, 2018, Beth sold the stock for $14 a share 8 2018, Beth bought th bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, vehicle to a friend for $6,500. who was unemployed and was in need of cash. On November 2, 2018, she sold the 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She n January 2, sold the stock on December 19, 2018, for $55 a share. During the year, developed. Beth incurred the business. Cost of personal computer Cost of printer Furniture Supplies Fee paid to computer consultant Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 5 179. These items were placed in service on January 15, 2018, and used 100% in her business Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350 Beth paid estimated taxes of $1,000. Beth records revenues of $16,000 from the sale of a software program she following expenditures in connection with her software development $7,000 2,000 3,000 650 3,500 Enter Shilft End ctrl Alt Required: Compute the Beth R. Jordan's net tax payable or refund due for 2018 by providing the following information that would be reported on Form 1040, Schedules A, B, C, D, SE, Form 8949, and Form 4562. .Make realistic assumptions about any missing data. .If an amount box does not require an entry or the answer is zero, enter "0*. .Enter all amounts as positive numbers. Assume Beth's qualified dividends and long-term capital gains tax rate is 15%. completing the requested information for Form 1040. final answers to the nearest dollar It may be necessary to provide information regarding the other schedules and forms before When computing the tax liability, do not round your immediate calculations. If required round your Provide the following that would be reported on the Beth Jordan's Form 1040: 1. Filing status: The taxpayer's filing status: Sralaiculate taxable gross ind cuy73ble gross income 1,20 -216- 103yG 3. Calculate the total deductiops for AGI 4. Calculate adjusted gross i S. Calculate the greater of the standard deduction or itemized deductions 03y 12, oDo 6. Calculate the deduction for qulified(business income. 7. Calculate income 3 8. Calcul x.epetaes due ,soud asuuly tax t matcare ta scaleyf 9. Calcula 10. Calculate total withholding and tax payments. 11. Calculate the amount overpaid (refund): 12. Calculate the amount of taxes owed The calculation of taxable income begins with gross income. Gross income includes all income, unless the tax law provides for a specific exclusion. Individual taxpayers have two categories of deductions: (1) deductions for adjusted gross income (deductions from gross income to arrive at adjusted gross income) and (2) deductions from adjusted gross income. As a general rule, personal expenditures are disallowed as deductions in arriving at taxable income. However, Congress allows specified personal expenses as deductions from AGI (commonly referred to as itemized deductions). AGI is an important subtotal that serves as the basis for computing percentage limitations on certain itemized deductions such as medical expenses, charitable contributions, and certain casualty losses. Calculate thi income tax l'abeu.ly C1424- 38200 23924 4y53.50 7452-78 431 00 22721 Beth is anticipating significant changes in her life in 2019, and she has asked taxable income and tax liability for 2019. She just received word that she has been qualified to adopt a two-year-old d you to estimate her that the adoption will be finalized in 2019 and that she will incur a expenses In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands decided to discontinue her two part-time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments In your computations, assume that all other income and expenditures will remain at approximately the same levels as in 2018. Use the 2018 standard deduction amounts and Tax Rate Schedules. Medical deductions are subject to a 10% reduction of AGI in 2019, Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well. For 2019, Filing status pproximately $2,000 of on her time because of her daughter, she has the following for Beth: Total gross income Adjusted gross income Greater of itemized deductions or standard deduction Taxable income Total income tax liability (before credits) Total tax credits: Net tax liability (after credits but before any tax withholdings or payments): ncorrect Soo nom yootadaph lay udt 2019 9000 Note: This problem is for the 2018 tax year Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa 1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund. Amount Description Wages, tips, other compensation Federal income tax withheld Social Security wages Social Security tax withheld Medicare wages and tips Medicare tax withheld State State wages, tips, etc. State income tax withheld Line $65,000.00 10,500.00 65,000.00 4,030.00 65,000.00 942.50 Arizona 65,000.00 1,954.00 16 During the year, Beth received from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT interest of $1,300 from Arizona Federal Savings and Loan and $400 She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and 0 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099- DIV received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer Fees earned from her part-time tax practice in 2018 totaled $ 3,800. She paid $600 to have the tax shares of Gray Corporation common stock for S17.60 a share. On February On September 12, 2018, Beth sold the stock for $14 a share 8 2018, Beth bought th bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, vehicle to a friend for $6,500. who was unemployed and was in need of cash. On November 2, 2018, she sold the 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She n January 2, sold the stock on December 19, 2018, for $55 a share. During the year, developed. Beth incurred the business. Cost of personal computer Cost of printer Furniture Supplies Fee paid to computer consultant Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 5 179. These items were placed in service on January 15, 2018, and used 100% in her business Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350 Beth paid estimated taxes of $1,000. Beth records revenues of $16,000 from the sale of a software program she following expenditures in connection with her software development $7,000 2,000 3,000 650 3,500 Enter Shilft End ctrl Alt Required: Compute the Beth R. Jordan's net tax payable or refund due for 2018 by providing the following information that would be reported on Form 1040, Schedules A, B, C, D, SE, Form 8949, and Form 4562. .Make realistic assumptions about any missing data. .If an amount box does not require an entry or the answer is zero, enter "0*. .Enter all amounts as positive numbers. Assume Beth's qualified dividends and long-term capital gains tax rate is 15%. completing the requested information for Form 1040. final answers to the nearest dollar It may be necessary to provide information regarding the other schedules and forms before When computing the tax liability, do not round your immediate calculations. If required round your Provide the following that would be reported on the Beth Jordan's Form 1040: 1. Filing status: The taxpayer's filing status: Sralaiculate taxable gross ind cuy73ble gross income 1,20 -216- 103yG 3. Calculate the total deductiops for AGI 4. Calculate adjusted gross i S. Calculate the greater of the standard deduction or itemized deductions 03y 12, oDo 6. Calculate the deduction for qulified(business income. 7. Calculate income 3 8. Calcul x.epetaes due ,soud asuuly tax t matcare ta scaleyf 9. Calcula 10. Calculate total withholding and tax payments. 11. Calculate the amount overpaid (refund): 12. Calculate the amount of taxes owed The calculation of taxable income begins with gross income. Gross income includes all income, unless the tax law provides for a specific exclusion. Individual taxpayers have two categories of deductions: (1) deductions for adjusted gross income (deductions from gross income to arrive at adjusted gross income) and (2) deductions from adjusted gross income. As a general rule, personal expenditures are disallowed as deductions in arriving at taxable income. However, Congress allows specified personal expenses as deductions from AGI (commonly referred to as itemized deductions). AGI is an important subtotal that serves as the basis for computing percentage limitations on certain itemized deductions such as medical expenses, charitable contributions, and certain casualty losses. Calculate thi income tax l'abeu.ly C1424- 38200 23924 4y53.50 7452-78 431 00 22721 Beth is anticipating significant changes in her life in 2019, and she has asked taxable income and tax liability for 2019. She just received word that she has been qualified to adopt a two-year-old d you to estimate her that the adoption will be finalized in 2019 and that she will incur a expenses In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands decided to discontinue her two part-time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments In your computations, assume that all other income and expenditures will remain at approximately the same levels as in 2018. Use the 2018 standard deduction amounts and Tax Rate Schedules. Medical deductions are subject to a 10% reduction of AGI in 2019, Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well. For 2019, Filing status pproximately $2,000 of on her time because of her daughter, she has the following for Beth: Total gross income Adjusted gross income Greater of itemized deductions or standard deduction Taxable income Total income tax liability (before credits) Total tax credits: Net tax liability (after credits but before any tax withholdings or payments): ncorrect Soo nom yootadaph lay udt 2019 9000