PLEASE FILL OUT THE FORM 1040 2018

Required information

[The following information applies to the questions displayed below.] Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.

1. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
2. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.
3. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
4. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
5. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
6. Kens son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100.
7. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $12,050 in itemized deductions last year (the standard deduction for a single filer was $12,000).
8. Ken received $30,000 of interest from corporate bonds and money market accounts.

1040 (99) Department of the Treasury-Intemal Revenue Service U.S. Individual Income Tax Return 2018 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Married filing jaintly Filing status: Single Marriedfiling separately Head ofhousehold Qualityingwidow(er) Last name Your soclal se curity number Your first name and intlal Somaone can claim you as a depandant You are blind Your standard deduction You ware bom before January 2, 1954 Last nam If joint return, spouse's first name and initial Spouse's social security num ber Spouse was bom before January 2, 1954 Spouse standard deduction: Someone can claim your spouse as a dependent Full-year health care coverage or exempt (see inst.) Spouse is blind Spousa itemizes on a separate return or you were dual-status alen Home addrass (number and street) If you have a P O bax, soo instructions. Presidential Election Campaign (seeinst.) Apt no YouSpouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6 If more than four dependents, see inst. and here Dependents (see instructions): (4)itqualinies for (see Inst Child tax credi (2) Social secunty number (3) Relationship to you Credifor other dependents (1) Firstname Last name Lnder penalties of perjury, I deciare that I have examined this retum and accompanying achedules and statements, and to the best of my knowledge and belie, they are true, cored, and complete. Dedaration of preparer (other than taxpayer) is based on all information of which preparer has any knowlede Sign Here IrthelRS sentyou anldentityProtection PIN, enter i hare (sae nst iriheIRS sentyou an Identity Protection PIN, enter it here (sae nst Yaur occupation Your signature Date Joint raturn? Seainstructions for your records. Spouse's signature. If a joint retum, both must sign. Date Spouse's occupation Preparer's name Preparer's signature PTIN Firm's FIN Check i Paid 3rd Party Designee Preparer Use Only Self-employed Firm's name Phone no Firm's address Form 1040 (2018) For Disclosure, Priva cy Act, and Paperwork Reduction Act Notice, see separato instructions. Cat. No. 11320D Form 1040 (2018) e 2 1 Wages, salaries, tips, etc Attach Form(s) W-2 b Taxable interest Tax-exempt interest 2a 2a 2b Attach Form(s) 3a Qualined dividends 3a b Ordinary dividends 3b W-2. Aso attach Fam(s) W-2G ad IRAS, pensions, and annuities 4a b Taxable amount 4a 4b 1099-R 'taxwas withheld 5a Social secunty benetits 5a b Taxable amount 5b 6 6 Totalincome. Addlines 1 through 5. Add any am ount from Schedule 1, line22 Adjusted gross income If you have no adjustments to income, enter the amount frpm ling 6 subtract Schedule 1, line 36, from line 6 7 otherwisa. 7 T Standard Deduetion for Standard deduction or ite mized deductions (from Schedule A) Sing le or maried fing saalely, $12,000 Married filing jaintly or Qualitying widowter), $24,000 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. It zero or less, enter -0- 10 Form 4972 3 (check ifany from: 1 Form (s) 8814 2 11 a Tax (see inst.) b Add any amount from Schadule 2 and check here 11 bAddany amountfrom Schedule3 and check her 12 a Child tax credil/eredit for other dependents 12 .ad of household, $18,000 Subtract ane 17 om lino 11 ifzero or less, enter -0- 13 13 If you checked any box under 14 Other taxes, Altach Schedule 4 14 15 Total tax. Add lines 13 and 14 15 Standard deduction Federal income tax withheld from Forms W-2 and 1099 16 16 see instructions Refundable creaits: a EIC (seeinst) 17 bSch, 8812 cForm a863 Add any amount from Schedule 5 17 Add lines 16 and 17. These are your total payments 18 18 If line 18 is more than line 15, subtract line 16 from line 18. This is the amount you overpaid 19 19 Refund 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here.. 20a Checking Direct deposit? See instructions b Routing number Savings d Account number 21 21 Amount of line 19 yau want applied to your 2019 estimated tax Amount you owe. Sublract line 18 from line 15. Far delails on haw to pay, see instructions Amount YouOwe 22 22 Estimated tax penalty (see instructions) 23 23 Go to www.irs.gov/Form 1040 for instructions and the latest inform ation Form 1040 (2018) 1040 (99) Department of the Treasury-Intemal Revenue Service U.S. Individual Income Tax Return 2018 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Married filing jaintly Filing status: Single Marriedfiling separately Head ofhousehold Qualityingwidow(er) Last name Your soclal se curity number Your first name and intlal Somaone can claim you as a depandant You are blind Your standard deduction You ware bom before January 2, 1954 Last nam If joint return, spouse's first name and initial Spouse's social security num ber Spouse was bom before January 2, 1954 Spouse standard deduction: Someone can claim your spouse as a dependent Full-year health care coverage or exempt (see inst.) Spouse is blind Spousa itemizes on a separate return or you were dual-status alen Home addrass (number and street) If you have a P O bax, soo instructions. Presidential Election Campaign (seeinst.) Apt no YouSpouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6 If more than four dependents, see inst. and here Dependents (see instructions): (4)itqualinies for (see Inst Child tax credi (2) Social secunty number (3) Relationship to you Credifor other dependents (1) Firstname Last name Lnder penalties of perjury, I deciare that I have examined this retum and accompanying achedules and statements, and to the best of my knowledge and belie, they are true, cored, and complete. Dedaration of preparer (other than taxpayer) is based on all information of which preparer has any knowlede Sign Here IrthelRS sentyou anldentityProtection PIN, enter i hare (sae nst iriheIRS sentyou an Identity Protection PIN, enter it here (sae nst Yaur occupation Your signature Date Joint raturn? Seainstructions for your records. Spouse's signature. If a joint retum, both must sign. Date Spouse's occupation Preparer's name Preparer's signature PTIN Firm's FIN Check i Paid 3rd Party Designee Preparer Use Only Self-employed Firm's name Phone no Firm's address Form 1040 (2018) For Disclosure, Priva cy Act, and Paperwork Reduction Act Notice, see separato instructions. Cat. No. 11320D Form 1040 (2018) e 2 1 Wages, salaries, tips, etc Attach Form(s) W-2 b Taxable interest Tax-exempt interest 2a 2a 2b Attach Form(s) 3a Qualined dividends 3a b Ordinary dividends 3b W-2. Aso attach Fam(s) W-2G ad IRAS, pensions, and annuities 4a b Taxable amount 4a 4b 1099-R 'taxwas withheld 5a Social secunty benetits 5a b Taxable amount 5b 6 6 Totalincome. Addlines 1 through 5. Add any am ount from Schedule 1, line22 Adjusted gross income If you have no adjustments to income, enter the amount frpm ling 6 subtract Schedule 1, line 36, from line 6 7 otherwisa. 7 T Standard Deduetion for Standard deduction or ite mized deductions (from Schedule A) Sing le or maried fing saalely, $12,000 Married filing jaintly or Qualitying widowter), $24,000 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. It zero or less, enter -0- 10 Form 4972 3 (check ifany from: 1 Form (s) 8814 2 11 a Tax (see inst.) b Add any amount from Schadule 2 and check here 11 bAddany amountfrom Schedule3 and check her 12 a Child tax credil/eredit for other dependents 12 .ad of household, $18,000 Subtract ane 17 om lino 11 ifzero or less, enter -0- 13 13 If you checked any box under 14 Other taxes, Altach Schedule 4 14 15 Total tax. Add lines 13 and 14 15 Standard deduction Federal income tax withheld from Forms W-2 and 1099 16 16 see instructions Refundable creaits: a EIC (seeinst) 17 bSch, 8812 cForm a863 Add any amount from Schedule 5 17 Add lines 16 and 17. These are your total payments 18 18 If line 18 is more than line 15, subtract line 16 from line 18. This is the amount you overpaid 19 19 Refund 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here.. 20a Checking Direct deposit? See instructions b Routing number Savings d Account number 21 21 Amount of line 19 yau want applied to your 2019 estimated tax Amount you owe. Sublract line 18 from line 15. Far delails on haw to pay, see instructions Amount YouOwe 22 22 Estimated tax penalty (see instructions) 23 23 Go to www.irs.gov/Form 1040 for instructions and the latest inform ation Form 1040 (2018)