Tax Preparation Project
Make sure your name is at the top right of each page you are handing in.
All required Forms and Schedules must be completed and handed in.
All blank forms can be printed from the IRS website, irs.gov.
This assignment is due 12/6/195:30p.m. No extensions will be granted. Unless you have a compelling reason to e-mail your results, I strongly prefer that the assignment be turned in to me in hard copy form.
Based on the following information prepare the2018 tax return for Jack and Jill Hill. Jack is 49 years old and Jill is 47 years old. Make up any Social Security Numbers you need. Do not use your own.
Jack is a salesman and Jill is a self-employed writer.
You are to prepare only Jack and Jill’s 2018 federal income tax return. You are not required to prepare a tax return for Bill and Hope. Bill and Hope’s income information is only for purposes of determining if they qualify as dependents.
1) Jack and Jill have two kids. Bill is 22 years old and a full-time student at UMES. Hope is 12 years old.
2) Jack and Jill paid $5,000 for tuition and books to UMES for Bill. He lived at home while attending UMES.
3) Bill had a summer job and made $2,000. Hope had no income. They both lived in Jack and Jill’s home the entire 12 months.
4) Jack has a W-2 from Sales, Inc with the following information:
Gross wages $80,000
Federal income tax withheld $15,000
State income tax withheld $7,000
Social security with held $4,960
Medicare withheld $1,160
5) Jill was a self-employed writer and the following are her business income and expenses:
Gross revenue $20,000
On 1/5/2018, she acquired office furniture for $1,500 and she would like to elect to take the Section 179 expensing election. It was used 100% business.
She paid $2,500 for Supplies
She paid $1,000 dues to the National Writers Association – an organization to help writers sell their work
6) Jack had $500 interest income from his savings account at Farmer’s Bank.
7) Jill had qualifying dividends of $1,000 from her General Motors stock.
8) On 12/1/18, Jill sold 1,000 shares of the General Motors stock for $35,000. She inherited the stock on 2/1/18 from her dad. The stock originally cost her dad $20,000. The value of the stock at her dad’s date of death was $25,000. When the stock was sold it was registered in Jill’s name only.
9) Jack won $10,000 from the state lottery. He could prove $15,000 in gambling losses.
10) Jack and Jill paid the following medical bills:
11) Jack and Jill paid the following property tax bills:
12) Jack and Jill paid the following interest:
13) Jack and Jill listed the following as their contributions:
14) In 2018, Jack and Jill received a state income tax refund from a 2016 amended state income tax return. In 2016, they filed married filing jointly and did not itemize deductions