ACTG 067: California “mock return” Jack and Norma Jones 2018 tax year.
Jack and Norma Jones filed MFJ 1040 for 2018:
Jones, Jack & Norma – 2018 Form 1040
Based on the Form 1040 with supportive forms and the information provided below, please prepare 2018 California Return for Jack & Norma Jones. They reside at 15 Maple Street in San Jose, CA 95134. Refer to the CA Form 540 Instructions, Week 9 supplemental lectures for the mechanics of CA Individual Tax Forms.
Jack Jones was born May 1, 1967 and works as an engineer at ABC Technology, his taxable wages (after 401k deductions, etc.) is $130,000 per year. His wife Norma Jones (born June 2, 1969) was a bookkeeper for Al’s Supermarket – she earned $35,000 during the first 9 months of the year and then was laid off for the rest of 2018. Their wage amounts are the same for federal and California. Norma has also received $11,000 in unemployment compensation from the state of California.
In 2018 Jack and Norma were covered by a healthcare plan offered through Jack’s company.
Jack has had $28,200 of Federal income taxes withheld from his paychecks and $10,000 California income taxes withheld from his paychecks. Norma had $1,800 Federal income tax and $1,000 California income tax withheld from her Al’s Supermarket paycheck. There were no taxes withheld on her unemployment compensation.
They have sold 100 shares of ABC Technology stocks during the year for $62,000 that they acquired in 2003 for $50,000. Note that everything they sold is long-term capital gains. You should assume that the cost basis for California purposes is the same as for Federal purposes. None of the stocks sold are qualified small business stock.
They received $400 of qualified dividend income from their ABC Technology stock. They also received interest income of $156 from Wells Fargo Bank. Norma is originally from Las Vegas, NV and a few years ago her parents gave her some City of Las Vegas municipal bonds which she still owns. She received $600 of interest income from these bonds which is tax exempt for Federal income tax purposes.
They have children but they finished college and have moved out – Jack and Norma do not support them.
They have owned their own home in San Jose since 1999, have mortgage interest of $15,800, and property taxes of $4,000. They own two cars and the deductible part of their DMV fees is $130. In April 2018, they filed their joint 2017 California income tax return and paid $1000 tax due to California.
Here is a list of their cash donations to various organizations:
Saint Mary’s (Roman Catholic Church) $2,000
Second Harvest Food Bank $500
Santa Clara University (Fundraising Campaign) $1,000
Make-A-Wish Foundation $100
With time on her hands, Norma has prepared and filed their joint federal Form 1040 but she has hired you to prepare the California Form 540 (and any required schedules).
You need to prepare a California Form 540 and a California Schedule CA540. If required, you should also prepare a California Schedule D540 (hint: read the directions). You may assume there is NO Federal or California AMT to consider.
Please note that I recommend using California fill-in PDF forms and not use tax software for this HW. Another option is to prepare 1040 first in tax software before you prepare California forms. This will take more time though. But it is up to you.
Approach:
Post your questions for discussion.
Check figure: Form 540, Line 94 Overpaid Tax is $2,349.
FOOTHILL COLLEGE EDUCATIONAL
,
408-439-3799
February 23, 2019
Jack and Norma Jones
15 Maple Street
San Jose, CA 95134
US
Dear Jack and Norma,
Enclosed is your 2018 Federal Individual Income Tax Return. The
original should be signed on page one. Both spouses should sign. No
tax is payable with the filing of this return. You will receive a
refund of $3,975.
Mail your Federal return on or before April 15, 2019 to:
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
FRESNO, CA 93888-0002
Under the Affordable Care Act, you and each member of your household had
either health coverage or an exemption for each month during 2018. No
individual shared responsibility payment is due with the filing of this
return.
Enclosed is your 2018 California Individual Income Tax Return. The
original should be signed at the bottom of page five. Both spouses
should sign. No tax is payable with the filing of this return. You
will receive a refund of $2,349.
Mail your California return on or before April 15, 2019 to:
FRANCHISE TAX BOARD
P.O. BOX 942840
SACRAMENTO, CA 94240-0001
Please be sure to call if you have any questions.
Sincerely,
Instructor Foothill
2018
Tax Reform Impact Summary
Page 1
Jack and Norma Jones
614-80-2222
The Tax Reform Impact Summary displays a comparison of the actual 2017 and 2018
tax return amounts. Additional information will be noted on continuing pages when
the amounts specific to this tax return may differ due to the Tax Cuts and Jobs
Act.
2017
2018
INCOME
Total income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
188,556
ADJUSTMENTS TO INCOME
Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted gross income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
0
0
188,556
ITEMIZED DEDUCTIONS
Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total itemized deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
0
0
0
10,000
15,800
3,600
29,400
TAX COMPUTATION
Standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Larger of itemized or standard deduction. . . . . . . . . . . . . . . . . . .
Income prior to exemption deduction. . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemption deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax before credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,700
0
0
0
0
0
24,000
29,400
159,156
0
159,156
26,025
NONREFUNDABLE CREDITS
Total nonrefundable credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax after credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
0
0
26,025
OTHER TAXES
Total tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
26,025
PAYMENTS AND REFUNDABLE CREDITS
Income tax withheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total payments and refundable credits. . . . . . . . . . . . . . . . . . . . . . . .
0
0
30,000
30,000
REFUND OR AMOUNT DUE
Amount overpaid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount refunded to you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount you owe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
0
0
3,975
3,975
0
TAX RATES
Marginal tax rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0%
22.0%
2018
Tax Reform Impact Summary
Jack and Norma Jones
Page 2
614-80-2222
ITEMIZED DEDUCTIONS
This return has itemized deductions of state and local taxes greater than the new
limit. For 2018, the Tax Cuts and Jobs Act limits the amount of state and local
taxes that may be deducted to $10,000 ($5,000 if married filing separately).
– California state tax law allows itemized deductions of state and local real
estate and personal property taxes in full for 2018.
TAX COMPUTATION
The Tax Cuts and Jobs Act increased the standard deduction from $12,700 in 2017,
to $24,000 in 2018.
2018
Federal Income Tax Summary
Jack and Norma Jones
Page 1
614-80-2222
INCOME
Wages, salaries, tips, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
165,000
156
400
12,000
11,000
188,556
ADJUSTMENTS TO INCOME
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
188,556
ITEMIZED DEDUCTIONS
Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total itemized deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,000
15,800
3,600
29,400
TAX COMPUTATION
Standard deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Larger of itemized or standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income prior to exemption deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax before credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,000
29,400
159,156
159,156
26,025
CREDITS
Total credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax after credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
26,025
OTHER TAXES
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,025
PAYMENTS
Federal income tax withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30,000
30,000
REFUND OR AMOUNT DUE
Amount overpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount refunded to you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount you owe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,975
3,975
0
TAX RATES
Marginal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22.0%
2018
California Income Tax Summary
Jack and Norma Jones
Page 1
614-80-2222
FEDERAL ADJUSTED GROSS INCOME
Federal adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
188,556
CALIFORNIA SUBTRACTIONS
Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total subtractions from federal AGI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,000
11,000
CALIFORNIA ADDITIONS
Taxable interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total additions to federal AGI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
600
600
ADJUSTED GROSS INCOME
Adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
178,156
ITEMIZED DEDUCTIONS
Itemized deduction before limitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
California itemized deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
California standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,530
23,530
8,802
TAX COMPUTATION
Total taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemption credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
154,626
8,887
236
8,651
PAYMENTS
California income tax withheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,000
11,000
REFUND OR AMOUNT DUE
Amount overpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount you owe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount refunded to you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,349
0
2,349
TAX RATES
Marginal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.3%
Form
Department of the Treasury
1040
Filing status:
‘ Internal Revenue Service
(99)
2018
U.S. Individual Income Tax Return
X Married filing jointly
Single
Married filing separately
Your first name and initial
Your standard deduction:
Someone can claim you as a dependent
If joint return, spouse’s first name and initial
614-80-2222
You were born before January 2, 1954
Last name
You are blind
Spouse’s social security number
Norma Jones
Spouse standard deduction:
Someone can claim your spouse as a dependent
‘ Do not write or staple in this space.
Qualifying widow(er)
Your social security number
Last name
Jack Jones
IRS Use Only
OMB No. 1545-0074
Head of household
Spouse was born before January 2, 1954
Spouse is blind
Spouse itemizes on a separate return or you were dual-status alien
Home address (number and street). If you have a P.O. box, see instructions.
Apt. no.
618-70-3333
X Full-year health care coverage
or exempt (see inst.)
15 Maple Street
Presidential Election Campaign
(see inst.)
You
Spouse
City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6.
If more than four dependents,
San Jose, CA 95134
see inst. and
Dependents (see instructions):
(1) First name
Sign
Here
Joint return?
See instructions.
Keep a copy
for your records.
Last name
(3) Relationship to you
b
here
G
(4) b if qualifies for (see inst.):
Child tax credit
Credit for other dependents
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they
are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
Your occupation
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
Date
Spouse’s occupation
If the IRS sent you an Identity Protection
Spouse’s signature. If a joint return, both must sign.
PIN, enter it
here (see inst.)
Engineer
A
Bookkeeper
Preparer’s name
Paid
Preparer
Use Only
(2) Social security
number
Firm’s name
G
Firm’s address
G
Preparer’s signature
Self-Prepared
PTIN
Firm’s EIN
Check if:
3rd Party Designee
Phone no.
FDIA0112L 01/08/19
BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
Form 1040 (2018)
Attach Form(s)
1 Wages, salaries, tips, etc. Attach Form(s) W-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
W-2. Also attach
Tax-exempt
interest
.
.
.
.
.
.
.
.
.
.
.
.
.
2a
2a
b
Taxable
interest
.
.
.
.
.
2b
600.
Form(s) W-2G
and 1099-R if tax
3a Qualified dividends. . . . . . . . . . . . . . 3a
3b
400. b Ordinary dividends. . .
was withheld.
4a IRAs, pensions, and annuities . . . 4a
b Taxable amount . . . . .
4b
5a Social security benefits. . . . . . . . . . 5a
b Taxable amount . . . . .
5b
6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22
6
23,000. . . . .
7 Adjusted gross income. If you have no adjustments to income, enter the amount from
Standard
line 6; otherwise, subtract Schedule 1, line 36, from line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Deduction for ‘
8 Standard deduction or itemized deductions (from Schedule A). . . . . . . . . . . . . . . . . . . . . . . . .
8
? Single or
9 Qualified business income deduction (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
married filing
separately,
10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter ‘0’. . . . . . . . . . .
10
$12,000
1
a Tax (see inst.)
(check if any from:
Form(s) 8814
26,025.
11
? Married filing
2
3
)
jointly or
Form 4972
Qualifying
11
b
Add
any
amount
from
Schedule
2
and
check
here
………………………… G
widow(er),
$24,000
12 a Child tax credit/credit for other dependents
? Head of
12
b Add any amount from Schedule 3 and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
household,
Subtract
line
12
from
line
11.
If
zero
or
less,
enter
-0…………………………….
13
13
$18,000
14 Other taxes. Attach Schedule 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
? If you
15
Total
tax.
Add
lines
13
and
14
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
checked any
16 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
box under
Standard
17 Refundable credits: a EIC (see inst.)
deduction, see
b Sch. 8812
c Form 8863
instructions.
Add any amount from Schedule 5
17
…………………………
18 Add lines 16 and 17. These are your total payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
19
19
If
line
18
is
more
than
line
15,
subtract
line
15
from
line
18.
This
is
the
amount
you
overpaid
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Refund
20 a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here. . G
20a
G b Routing number . . . . . . . . XXXXXXXXXX
Checking
Savings
Direct deposit?
G c Type:
See instructions. G d Account number. . . . . . . . XXXXXXXXXXXXXXXXXXXXXXXX
21 Amount of line 19 you want applied to your 2019 estimated tax. . . . . . . . G 21
Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions. . . . . . . . . . . . . . . G 22
23 Estimated tax penalty (see instructions). . . . . . . . . . . . . . . . . . G 23
Go to www.irs.gov/Form1040 for instructions and the latest information.
Self-employed
Form 1040 (2018)
Page 2
165,000.
156.
400.
188,556.
188,556.
29,400.
159,156.
26,025.
26,025.
26,025.
30,000.
30,000.
3,975.
3,975.
Form 1040 (2018)
SCHEDULE 1
OMB No. 1545-0074
Additional Income and Adjustments to Income
(Form 1040)
2018
A Attach to Form 1040.
A Go to www.irs.gov/Form1040 for instructions and the latest information.
Department of the Treasury
Internal Revenue Service
Attachment
Sequence No.
01
Your social security number
Name(s) shown on Form 1040
Jack and Norma Jones
614-80-2222
1’9b Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1’9b
Additional
Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . 10
10
Income
Adjustments
to Income
11
12
Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business income or (loss). Attach Schedule C or C-EZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
14
15a
16a
17
Capital gain or (loss). Attach Schedule D if required. If not required, check here. . . . . . . . . . G
Other gains or (losses). Attach Form 4797. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E.
18
Farm income or (loss). Attach Schedule F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
20a
21
Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Combine the amounts in the far right column. If you don’t have any adjustments to
income, enter here and include on Form 1040, line 6. Otherwise, go to line 23. . . . . . . . . . .
Other income. List type and amount
23 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Certain business expenses of reservists, performing artists,
and fee-basis government officials. Attach Form 2106. . . . . . .
24
24
25 Health savings account deduction. Attach Form 8889. . . . . . . .
26 Moving expenses for members of the Armed Forces.
Attach Form 3903. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
27 Deductible part of self-employment tax. Attach Schedule SE. . . . . . . . . . . . . .
28 Self-employed SEP, SIMPLE, and qualified plans. . . . . . . . . . .
27
29 Self-employed health insurance deduction. . . . . . . . . . . . . . . . . .
30 Penalty on early withdrawal of savings. . . . . . . . . . . . . . . . . . . . .
29
31a Alimony paid b Recipient’s SSN G
32 IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31a
32
33 Student loan interest deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
34 Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35 Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
11
12
13
12,000.
14
15b
16b
17
18
19
20b
21
11,000.
22
23,000.
26
28
30
35
36 Add lines 23 through 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
0.
BAA For Paperwork Reduction Act Notice, see your tax return instructions.
Schedule 1 (Form 1040) 2018
FDIA0103L
01/21/19
Itemized Deductions
SCHEDULE A
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
OMB No. 1545-0074
2018
G Go to www.irs.gov/ScheduleA for instructions and the latest information.
G Attach to Form 1040.
Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16.
Attachment
Sequence No.
Name(s) shown on Form 1040
Your social security number
Jack and Norma Jones
614-80-2222
Medical
and
Dental
Expenses
Taxes You
Paid
1
2
3
4
Caution: Do not include expenses reimbursed or paid by others.
Medical and dental expenses (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
Enter amount from Form 1040, line 7. . . . . .
Multiply line 2 by 7.5% (0.075) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 State and local taxes.
a State and local income taxes or general sales taxes. You may
include either income taxes or general sales taxes on line 5a,
but not both. If you elect to include general sales taxes instead
of income taxes, check this box.. . . . . . . . . . . . . . . . . . . . . . . G
5a
b State and local real estate taxes (see instructions) . . . . . . . . . . . . . . . . . . . . . . .
5b
c State and local personal property taxes. . . . . . . . . . . . . . . . . . . . . . .
5c
d Add lines 5a through 5c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5d
12,000.
4,000.
130.
16,130.
e Enter the smaller of line 5d or $10,000 ($5,000 if married filing
separately). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5e
10,000.
07
4
0.
7
10,000.
10
15,800.
6 Other taxes. List type and amount G
6
7 Add lines 5e and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest
You Paid
Caution:
Your mortgage
interest
deduction may
be limited (see
instructions).
8 Home mortgage interest and points. If you didn’t use all of your
home mortgage loan(s) to buy, build, or improve your home,
see instructions and check this box. . . . . . . . . . . . . . . . . . . . G
a Home mortgage interest and points reported to you on Form
1098. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Home mortgage interest not reported to you on Form 1098. If
paid to the person from whom you bought the home, see
instructions and show that person’s name, identifying no., and
address G
8a
c Points not reported to you on Form 1098. See instructions for special rules . . . . .
8c
d Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8d
e Add lines 8a through 8c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Investment interest. Attach Form 4952 if required. See
instructions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8e
15,800.
8b
15,800.
9
10 Add lines 8e and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gifts to
Charity
If you made a gift
and got a benefit for
it, see instructions.
11 Gifts by cash or check. If you made any gift of $250 or more,
see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Other than by cash or check. If any gift of $250 or
more, see instructions. You must attach Form 8283 if
over $500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 Carryover from prior year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
3,600.
12
13
14
3,600.
Casualty and
Theft Losses
15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster
losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions.
15
0.
Other
Itemized
Deductions
16
Total
Itemized
Deductions
17 Add the amounts in the far right column for lines 4 through 16.
Also, enter this amount on Form 1040, line 8.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 If you elect to itemize deductions even though they are less than your standard
deduction, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
14 Add lines 11 through 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other’from list in instructions. List type and amount G
BAA For Paperwork Reduction Act Notice, see the Instructions for Form 1040.
FDIA0301L 11/29/18
16
0.
17
29,400.
Schedule A (Form 1040) 2018
SCHEDULE B
OMB No. 1545-0074
Interest and Ordinary Dividends
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
2018
G Go to www.irs.gov/ScheduleB for instructions and the latest information.
G Attach to Form 1040.
Name(s) shown on return
Attachment
Sequence No.
08
Your social security number
Jack and Norma Jones
614-80-2222
Amount
1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used
Part I
the property as a personal residence, see the instructions and list this interest first. Also,
show that buyer’s social security number and address G
Interest
Wells Fargo Bank
(See instructions
and the
instructions for
Form 1040,
line 2b.)
Note: If you
received a Form
1099-INT, Form
1099-OID, or
substitute statement
from a brokerage
firm, list the firm’s
name as the payer
and enter the total
interest shown on
that form.
1
2
3
Add the amounts on line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach
Form 8815 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Subtract line 3 from line 2. Enter the result here and on Form 1040, line 2b . . . . . . . . . . . . . . G
Note: If line 4 is over $1,500, you must complete Part III.
Part II
156.
5
156.
2
3
4
156.
Amount
List name of payer G
ABC Technology
400.
Ordinary
Dividends
(See instructions
and the
instructions for
Form 1040,
line 3b.)
Note: If you received
a Form 1099-DIV or
substitute statement
from a brokerage
firm, list the firm’s
name as the payer
and enter the
ordinary dividends
shown on that form.
5
6 Add the amounts on line 5. Enter the total here and on Form 1040, line 3b. . . . . . . . . . . . . . . G
Note: If line 6 is over $1,500, you must complete Part III.
Part III
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had
a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.
Foreign
Accounts
and Trusts
400.
6
7a At any time during 2018, did you have a financial interest in or signature authority over a financial
account (such as a bank account, securities account, or brokerage account) located in a foreign country?
See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If ‘Yes,’ are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to
report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing
(See instructions.)
requirements and exceptions to those requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial
Yes
No
X
account is located G
8
During 2018, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If
‘Yes,’ you may have to file Form 3520. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
X
BAA For Paperwork Reduction Act Notice, see your tax return instructions.
FDIA0401L 07/20/18
Schedule B (Form 1040) 2018
SCHEDULE D
OMB No. 1545-0074
Capital Gains and Losses
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
2018
G Attach to Form 1040 or Form 1040NR.
G Go to www.irs.gov/ScheduleD for instructions and the latest information.
G Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
Attachment
Sequence No.
12
Name(s) shown on return
Your social security number
Jack and Norma Jones
614-80-2222
Part I
Short-Term Capital Gains and Losses ‘ Generally Assets Held One Year or Less (see instructions)
See instructions for how to figure the amounts to
enter on the lines below.
This form may be easier to complete if you round
off cents to whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part I,
line 2, column (g)
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported
on Form 1099-B for which basis was reported
to the IRS and for which you have no
adjustments (see instructions).
However, if you choose to report all these
transactions on Form 8949, leave this line
blank and go to line 1b . . . . . . . . . . . . . . . . . . . . .
1b Totals for all transactions reported on
Form(s) 8949 with Box A checked . . . . . . . . . . .
2 Totals for all transactions reported on
Form(s) 8949 with Box B checked . . . . . . . . . . .
3 Totals for all transactions reported on
Form(s) 8949 with Box C checked . . . . . . . . . . .
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . .
4
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . .
5
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term
capital gains or losses, go to Part II below. Otherwise, go to Part III on the back. . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Part II
Long-Term Capital Gains and Losses ‘ Generally Assets Held More Than One Year (see instructions)
See instructions for how to figure the amounts to
enter on the lines below.
This form may be easier to complete if you round
off cents to whole dollars.
8a Totals for all long-term transactions reported
on Form 1099-B for which basis was reported
to the IRS and for which you have no
adjustments (see instructions). However,
if you choose to report all these transactions
on Form 8949, leave this line blank and go
to line 8b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
62,000.
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part II,
line 2, column (g)
50,000.
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
12,000.
8b Totals for all transactions reported on
Form(s) 8949 with Box D checked. . . . . . . . . . .
9
Totals for all transactions reported on
Form(s) 8949 with Box E checked. . . . . . . . . . .
10
Totals for all transactions reported on
Form(s) 8949 with Box F checked. . . . . . . . . . .
11
Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from
Forms 4684, 6781, and 8824. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
12
Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . .
12
13
Capital gain distributions. See the instrs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
14
Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover
Worksheet in the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
12,000.
BAA For Paperwork Reduction Act Notice, see your tax return instructions.
Schedule D (Form 1040) 2018
FDIA0612L
08/27/18
Schedule D (Form 1040) 2018
Part III
Jack and Norma Jones
614-80-2222
Page 2
Summary
16
12,000.
18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the
amount, if any, from line 7 of that worksheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 18
0.
16 Combine lines 7 and 15 and enter the result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
?
?
?
If line 16 is a gain, enter the amount from line 16 on Schedule 1 (Form 1040), line 13, or Form 1040NR,
line 14. Then go to line 17 below.
If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22.
If line 16 is zero, skip lines 17 through 21 below and enter -0- on Schedule 1 (Form 1040), line 13, or
Form 1040NR, line 14. Then go to line 22.
17 Are lines 15 and 16 both gains?
X Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.
19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see
instructions), enter the amount, if any, from line 18 of that worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 19
20 Are lines 18 and 19 both zero or blank?
X Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 11a (or in the instructions for Form 1040NR, line 42). Don’t complete lines
21 and 22 below.
No. Complete the Schedule D Tax Worksheet in the instructions. Don’t complete lines
21 and 22 below.
21 If line 16 is a loss, enter here and on Schedule 1 (Form 1040), line 13, or Form 1040NR, line 14,
the smaller of:
?
?
The loss on line 16; or
($3,000), or if married filing separately, ($1,500)
…………………………………………
21
Note: When figuring which amount is smaller, treat both amounts as positive numbers.
22 Do you have qualified dividends on Form 1040, line 3a, or Form 1040NR, line 10b?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 11a (or in the instructions for Form 1040NR, line 42).
No. Complete the rest of Form 1040 or Form 1040NR.
Schedule D (Form 1040) 2018
FDIA0612L
08/27/18
2018
Federal Worksheets
Page 1
Jack and Norma Jones
614-80-2222
Wage Schedule
Taxpayer – Employer
ABC Technology
Total
Wages
130,000.
130,000.
Spouse – Employer
Al’s Supermarket
Wages
Total
35,000.
35,000.
Grand Total
165,000.
Federal
W/H
28,200.
28,200.
Federal
W/H
1,800.
1,800.
FICA
Medicare
7,961.
7,961.
1,885.
1,885.
FICA
Medicare
State
W/H
SDI
10,000.
10,000.
State
W/H
0.
SDI
2,170.
2,170.
508.
508.
1,000.
1,000.
0.
30,000. 10,131.
2,393.
11,000.
0.
Form 1040, Line 2a
Tax-Exempt Interest
Payer
City of Las Vegas
In-state
municipal
bonds
0.
Private
activity
bonds
Total
municipal
bonds
0.
600.
600.
Total
400.
400.
Form 1040, Line 3a
Qualified Dividends
ABC Technology
State and Local Refunds Taxable in 2019
(IRS Pub. 525)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
State and local income tax refunds (current year)
Refunds attributable to post 12/31/2018 payments per IRS Pub. 525
Net state and local income tax refunds
State and local income taxes included on Schedule A, line 5e
Allowable general sales tax deduction
Excess of income taxes deducted over sales taxes deducted
Enter the smaller of line 3 or line 6
Itemized deductions from Schedule A, line 17
Recomputed itemized deductions, if phaseout
Standard deduction
Enter the larger of line 9 or line 10
Subtract line 11 from line 8 (not less than 0)
Enter the smaller of line 7 or line 12
Negative taxable income (current year)
State and local refunds taxable next year
(add lines 13 and 14, but not less than 0)
2,349.
0.
2,349.
7,440.
1,404.
6,036.
2,349.
29,400.
0.
24,000.
24,000.
5,400.
2,349.
0.
2,349.
2018
Federal Worksheets
Page 2
Jack and Norma Jones
614-80-2222
Qualified Dividends and Capital Gain Tax Worksheet (Form 1040, Line 11)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
Enter the amount from Form 1040, line 10
Enter the amount from Form 1040, line 3a
Are you filing Schedule D?
[X] Yes. Enter the smaller of line 15 or 16 of
Schedule D, but do not enter less than zero
[ ] No. Enter the amount from Schedule 1, line 13
Add lines 2 and 3
If you are claiming investment interest expense
on Form 4952, enter the amount from line 4g of
that form. Otherwise enter zero.
Subtract line 5 from line 4. If zero or
less, enter zero.
Subtract line 6 from line 1. If zero or
less, enter zero.
Enter:
$38,600 if single or married filing separately,
$77,200 if married filing jointly or qualifying
widow(er), $51,700 if head of household
Enter the smaller of line 1 or line 8
Enter the smaller of line 7 or line 9
Subtract line 10 from line 9. This amount
is taxed at 0%
Enter the smaller of line 1 or line 6
Enter the amount from line 11
Subtract line 13 from line 12
Enter:
$425,800 if single, $239,500 if married filing
separately, $479,000 if married filing jointly
or qualifying widow(er), $452,400 if head
of household.
Enter the smaller of line 1 or line 15
Add lines 7 and 11
Subtract line 17 from line 16. If zero or
less, enter zero.
Enter the smaller of line 14 or line 18
Multiply line 19 by 15% (.15)
Add lines 11 and 19
Subtract line 21 from line 12
Multiply line 22 by 20% (.20)
Figure the tax on the amount on line 7.
(Use the Tax Table or Tax Computation Worksheet)
Add lines 20, 23, and 24
Figure the tax on the amount on line 1.
(Use the Tax Table or Tax Computation Worksheet)
Tax on all taxable income (including
capital gain distributions). Enter the
smaller of line 25 or line 26 here and on
Form 1040, line 11
400.
159,156.
12,000.
12,400.
0.
12,400.
146,756.
77,200.
77,200.
77,200.
0.
12,400.
0.
12,400.
479,000.
159,156.
146,756.
12,400.
12,400.
1,860.
12,400.
0.
0.
24,165.
26,025.
26,893.
26,025.
Federal Income Tax Withheld
ABC Technology
Al’s Supermarket
Total
28,200.
1,800.
30,000.
2018
Federal Worksheets
Page 3
Jack and Norma Jones
614-80-2222
State and Local Taxes (Schedule A, Line 5a)
State and Local Income Taxes
Income tax withheld
Disability/unemployment insurance/transit tax
Estimated tax payments
Credit for prior year overpayment
Credit for income tax withheld (K-1)
1/18 payment on 2017 estimate
Paid with 2017 extension
Paid with 2017 return
Paid for prior years and/or to other states
Total income taxes
State
11,000.
0.
0.
0.
0.
0.
0.
1,000.
0.
12,000.
Total state and local income taxes
Local
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
12,000.
State and Local Sales Taxes Using the Optional Sales Tax Tables
Available Income:
Adjusted gross income per Form 1040
Tax-exempt interest
Nontaxable combat pay
Nontaxable social security benefits
Nontaxable pensions
Nontaxable IRAs
Prior year refundable credits (refundable portion only)
Additional nontaxable amounts
Total Available Income (not less than zero)
Number of Exemptions
1. State general sales taxes per Tables
2. Local general sales taxes per Tables for certain residents of
AK, AZ, AR, CO, GA, IL, LA, MO, MS, NC, NY, SC, TN, UT, and VA
(based on a rate of 1%)
3. Local general sales tax rate
4. If line 2 is zero, enter your state general sales tax rate.
Otherwise, skip line 4 and 5, and go to line 6
5. Divide line 3 by line 4
6. Local general sales taxes. If line 2 is zero, multiply
line 1 by line 5. Otherwise, multiply line 2 by line 3.
7. State and local general sales taxes (add lines 1 and 6)
8. Sales taxes paid on vehicles, boats, etc.
9. Sales tax deduction when using Tables (add lines 7 and 8)
188,556.
600.
0.
0.
0.
0.
0.
0.
189,156.
2.
1,404.
0.
7.2500
0.
1,404.
0.
1,404.
State and Local Sales Tax Deduction
(Greater of Taxes Paid or Table Amount)
1.
2.
3.
4.
5.
General sales taxes paid
Use taxes paid
Total actual taxes paid (add lines 1 and 2)
Sales taxes using Tables
Greater of sales taxes paid or Table amount
State & Local Taxes to Sch. A, Ln 5 (greater of income or sales tax)
0.
0.
0.
1,404.
1,404.
12,000.
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