Question

During 2017, Cassandra Albright, who is single, worked part-time at a doctor’s office and received a W-2. She also had a cash-basis consulting practice that had the following income and expenses:

Revenue $ 48,000 Laptop computer purchased 4/23/17 (§ 179 elected) 2,300 Travel 2,500 miles for business, 13,000 personal Supplies 500 Cell phone charge 540

Cassandra (SSN 412-34-5670) resides at 1400 Medical Street, Apt. 3A, Lowland, CA 92273. Professional code 622000.

Her W-2 shows the following: Wages $ 45,300 Federal withholding 4,983 Social security wages 45,300 Social security withholding 2,809 Medicare withholding 657 State withholding 2,265

Other income: 1099-INT Old Bank 2,300 1099-DIV Bake Co., Inc.—Ordinary dividends 3,100 Qualified dividends 3,100 Cassandra had the following itemized deductions: State income tax withholding $ 2,265 State income tax paid with the 2016 return 350 Real estate tax 3,450 Mortgage interest 12,300 Cassandra made two federal estimated payments of $7,000 each on April 15 and June 15. She had qualifying health care coverage at all times during the tax year.

Prepare Form 1040 for Cassandra for 2017, including Schedule A, Schedule B, Schedule C, Schedule SE and Form 4562. Use the appropriate Tax Tables (2017 Tax Table).

(Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole dollar and percentage values to two decimal places.)

Answer 1

Following are the answer.....

Form 1040 2017) Page 2 38 Amount from line 37 (adjusted gross incoma) 39a Check You were born before January 2, 1953, Ш Blind Total boxes Spouse was born before January 2, 1953, Blind. checked 39a b f your spouse Itemizes on a separate retum or you were a dual-status allen, check here 39b0 standard 40 ltemized deductions (from Schedule A) or your standard deduction (see left margin) Deduction41 Subtract line 40 from People who 42 Exemptions. f ine 38 is $156,900 or less, multply $4,050 by the number on ine 6d. Otherwise, see instructions 42 on Tle 43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -o wa raseb or44 Tax (see instructions). Check if any from: aForm(s) 14 Form 4972 c clalmed as a45 Alternative minimum tax (see instructions). Attach Form 6251 46 Excess advance premium tax credit repayment. Attach Form 8962 Foreign tax credit. Attach Form 1116 if required Education credits from Form 8863, line 19 nstructions. 47 Add lines 44, 45, and 48 48 g 49 Credit for child and dependent care expenses. 50 ed nlilng 51 Retirement savings contributions credit. Attach Form 8880 51 53 Residential energy credits Head of 4 ther aredits from Farma80054 ous55 Add lines 48 through 54. These are your total credits 56 Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- 57 Sef-employment tax. Attach Schedule SE 58 Unreported social security and Medicare tax from Form: a4137 8919 59 Adational tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 If required 60a Household employment taxes from Schedule H 12,560 Taxes 61 Health care: Individual responsilbility (see Instructions) Full-year coverage 62 Taxes from: aForm 8959 b Form 8980 Instructions; enter codels) 63 Add lines 56 through 62. This is your total tax_ _ 18,681 Payments 64 Federal income tax withheld from Forms W-2 and 1099 t you have a Eamed income credit (E 65 2017 estimated tax payments and amount applied from 2016 retum 65 b Nontaxable combat pay election 66b 68 69 70 American opportunity credit from Form 8863, line 8 Net premium tax credit. Attach Form 8962 Amount paid with request for extension to file 71 Excess social secunity and tier 1 RRTA tax withhekd 73 Credits from Fom: a 243 bRee 8885 d 74 Add ines 64, 65, 68a, and 67 through 73. These are your total payments Refund75 If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid75 Direat depoeit? b Routing number Amount Third Party 76a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here 76a d Account number 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions 78 nt to allow another person to discuss this return with the IRS (see instructions)? Yes. Complate below. No of㏘, I decin tatlhwar nod t erat mard acoor p r ing shadu Gard stat n ra nd to he sat of my nowadqa and bidt ayntu, oor act, and st all amounts and souroas of incomal racaivad during thatax yaar. Daclarationfpraparor othar than toxpayaris basad on all rformaion of which praparor has any knowladga number Keep a copy for Spouse's signature. If a joint retur, both must sign.Date the AS sent you an Idendity Protection Use OnlyFmname Phone Go to www.irs.go Form1040 for instructions and the latest irformation. Fom 1040 (2017)