Using the information provided in each link below, complete three tax returns for the following clients (Tax Return 1, 2, and 3) in TaxAct: Robert and Amy Pax; Heather and Nick Johnson; and Kiara and Brock Smith.

Kiara and Brock Smith

Kiara and Brock Smith are married and file a joint return.

Kiara's Social Security number is 500-50-1177 and her birth date is 7/10/1980.

Brock's social security number is 101-05-2255 and his birth date is 7/12/1979.

Kiara and Brock have one son, Henry, born 2/24/2015. His Social Security number is 011-22-3526.

They live at 356 Wisteria Lane, Woodbury, WA 84653. They report their income on the cash method.

During 2019, they report the following items:

• Interest income from money market accounts $500
• Dividend income from Davis Corp. stock $750
• Cash contributions to church $7,000

Rental of a condominium in Lutsen:

• Rental income $15,750
• Interest expense $7,000
• Property taxes $3,200
• Maintenance $1,000
• Insurance $950
• Depreciation for the year $8,000 (Enter the asset with purchase date 12/1/2018 and purchase price $220,000. You may need to override the depreciation amount.)
• Days of personal use 0
• The address of the Condo is 5246 Skyline Drive, Lutsen, WA 84666.

Forms

Kiara W2

Form 1098

Nick is not employed

During the year the following events also occur:

1. In 2018, Brock had loaned a friend $3,000 to help pay medical bills. During 2019, he discovers that his friend has skipped town.
2. On June 20, 2019, Brock sells Kim Corporation stock for $16,000. He purchased the stock on December 12, 2011 for $22,000.
3. Nick had gambling losses in the amount of $5,000.
4. Instead of accepting $60 the utility store offers for their old dishwasher, they donate it to Goodwill on November 21, 2019. They purchased the dishwasher for $750 on March 30, 2007. The new dishwasher cost $900.
5. Kiara and Brock purchased a new residence for $250,000. As part of the closing costs, they pay two points, or $3,800, on the mortgage, which is interest rather than loan processing fees. This payment enables them to obtain a more favorable interest rate for the term of the loan. They also paid $8,400 in interest on their mortgage on their personal residence.
6. They pay $5,100 in property taxes on their residence.
7. Cash contributions to the local charity $20,000.

Complete Kiara and Brocks Form 1040 for tax year 2019, Schedules A, B, D, and E, Form 8283 and Form 8949.

For purposes of this problem, disregard the alternative minimum tax and any credits.

2019 form w-2 Employee's social security number Standard W-2 (Typed or computer generated) OMB No. 1545-0008 500-50-1177 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 86-0291542 103,000.00 9,933.04 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Memory Lane Corp 103,000.00 6,386.12 Employer's address 1212 W Washington 5 Medicare w ages and tips 6 Medicare tax withheld Employer's city 103,000.00 1,493.44 Woodbury State WA ZIP code 84653 7 Social security tips 8 Allocated tips Employer's foreign country 0.00 0.00 9 Verification code 10 Dependent care benefits 0.00 Amount Foreign province/county Foreign postal code 11 Nonqualified plans 0.00 0.00 d Control number 13 Statutory employee 0.00 e Employee's first name and initial Retirement plan 0.00 Kiara Employee's last name Suff. Third-party sick pay 0.00 Smith 0.00 f Employee's address 14 See expanded 356 Wisteria Lane section below. 0.00 Employee's city State ZIP code 0.00 Woodbury WA 84653 Employee's foreign country 0.00 TZ Code Foreign province/county Foreign postal code 15 State State ID No. WA 86-291542 16 State w ages 17 State inc tax 18 Local w ages 19 Local W/H 20 Local name 103,000.00 7,500.00 0.00 0.00 Recipient's/Lender's TIN Payer's/Borrow er's TIN 67-123456 500-50-4177 Recipient's/Lender's name LOANCARE Recipient's/Lender's address PO BOX 8068 Recipient's/Lender's city State ZIP code VIRGINIA BEACH VA 23450 Recipient's/Lender's foreign country *Caution:The amount shown may not be fully deductible by you. Limits based on the loan OMB No. 1545-0901 amount and the cost and Mortgage value of the secured property may apply. Also 2019 Interest you may only deduct interest to the extent it Statement was incurred by you, actually paid by you, and not reimbursed by Form 1098 another person 1 Mortgage interest received from payer(s)/borrow er(s)* 8, 400 2 Outstanding mortgage principal as of 1/1/2019 0. 3 Mortgage origination date Lender foreign province/county Foreign postal code Recipient's/Lender's telephone number Payer's/Borrower's name Kiara Smith Street address (including apt. no.) 356 Wistera Lane City or town State Woodbury WA Foreign country ZIP code 84653 4 Refund of overpaid interest (see instructions on w hether to report as Other Income on Form 1040.) 0. 5 Mortgage insurance premiums 0. 6 Points paid on purchase of principal residence 3,800. 7 If address of property securing mortgage is the same as PAYER'S/BORROWER'S address, the box is checked. or the address or description is entered in box 8. 8 Address of property securing mortgage (see instructions) Foreign province/county Foreign postal code Account number City or town State ZIP code 10 Other 9 Number of properties securing the mortgage Description of the property 2019 form w-2 Employee's social security number Standard W-2 (Typed or computer generated) OMB No. 1545-0008 500-50-1177 Non-Standard W-2 (Altered or hand written) Form W-2c, Corrected Wage and Tax Stmt. b Employer identification number 1 Wages, tips, other comp 2 Federal inc tax withheld 86-0291542 103,000.00 9,933.04 c Employer's name 3 Social security w ages 4 Social Sec tax withheld Memory Lane Corp 103,000.00 6,386.12 Employer's address 1212 W Washington 5 Medicare w ages and tips 6 Medicare tax withheld Employer's city 103,000.00 1,493.44 Woodbury State WA ZIP code 84653 7 Social security tips 8 Allocated tips Employer's foreign country 0.00 0.00 9 Verification code 10 Dependent care benefits 0.00 Amount Foreign province/county Foreign postal code 11 Nonqualified plans 0.00 0.00 d Control number 13 Statutory employee 0.00 e Employee's first name and initial Retirement plan 0.00 Kiara Employee's last name Suff. Third-party sick pay 0.00 Smith 0.00 f Employee's address 14 See expanded 356 Wisteria Lane section below. 0.00 Employee's city State ZIP code 0.00 Woodbury WA 84653 Employee's foreign country 0.00 TZ Code Foreign province/county Foreign postal code 15 State State ID No. WA 86-291542 16 State w ages 17 State inc tax 18 Local w ages 19 Local W/H 20 Local name 103,000.00 7,500.00 0.00 0.00 Recipient's/Lender's TIN Payer's/Borrow er's TIN 67-123456 500-50-4177 Recipient's/Lender's name LOANCARE Recipient's/Lender's address PO BOX 8068 Recipient's/Lender's city State ZIP code VIRGINIA BEACH VA 23450 Recipient's/Lender's foreign country *Caution:The amount shown may not be fully deductible by you. Limits based on the loan OMB No. 1545-0901 amount and the cost and Mortgage value of the secured property may apply. Also 2019 Interest you may only deduct interest to the extent it Statement was incurred by you, actually paid by you, and not reimbursed by Form 1098 another person 1 Mortgage interest received from payer(s)/borrow er(s)* 8, 400 2 Outstanding mortgage principal as of 1/1/2019 0. 3 Mortgage origination date Lender foreign province/county Foreign postal code Recipient's/Lender's telephone number Payer's/Borrower's name Kiara Smith Street address (including apt. no.) 356 Wistera Lane City or town State Woodbury WA Foreign country ZIP code 84653 4 Refund of overpaid interest (see instructions on w hether to report as Other Income on Form 1040.) 0. 5 Mortgage insurance premiums 0. 6 Points paid on purchase of principal residence 3,800. 7 If address of property securing mortgage is the same as PAYER'S/BORROWER'S address, the box is checked. or the address or description is entered in box 8. 8 Address of property securing mortgage (see instructions) Foreign province/county Foreign postal code Account number City or town State ZIP code 10 Other 9 Number of properties securing the mortgage Description of the property