Question

John R. Lane (SSN 111-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, provided 60% of his cousin’s support. The cousin lives in Arizona. He wants to take advantage of the presidential election campaign check-off. John was employed as an accountant before he retired during the year. Other relevant information includes: Salary $50,000 Pension (all taxable) $41,000 Taxable interest income $240 Deductible contribution to IRA $5,500 Withholdings $12,100 John’s itemized deductions total $11,000. Complete Form 1040 and Schedule 1 for 2018. Assume any estimated tax penalty is zero.

Answer 1

Below is an abstract of 1040 and Schedule 1 :

Lines	Particulars	Amount in $
a.	Wages, Salaries, tips etc	50000
b.	Taxable interest	240
c.	Pension and Annuities	41000
d.	IRA Deduction	5500
Adjusting Gross Income (a +b + c - d)		85740
e.	Standard deduction	20000
f.	Itemized deductions (From Schedule A)	11000
g.	Taxable income (AGI - e. - f.)	54740
f.	Tax ( 22% )	12042.8
Tax already paid		12100
Refund		57.2

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