John Smith (Social Security number XXXXXXXXXXis 50 years old and is maied to Joan Smith (Social...

Question

John Smith (Social Security number XXXXXXXXXXis 50 years old and is ma
ied to Joan Smith (Social
Security number XXXXXXXXXXThe Smiths live at 512 Fe
y Road, Newport Beach, CA XXXXXXXXXXThey file
a joint return and have two dependent children, Ryan, age 13, and Ashley, age 14. Ryan’s Social Security
number is XXXXXXXXXX, and Ashley’s Social Security number is XXXXXXXXXXIn 2018, John and Joan
had the following transactions:

1. John received $200,000 in salary from Red Steel Corporation, where he is a construction
engineer. Withholding for Federal income tax was $37,750 and the appropriate FICA and
Medicare tax withholding was done.
2. John’s mother passed away and he received a parcel of Land worth $500,000 and Life Insurance
Proceeds of $150,000.
3. John and Joan received $10,400 interest on Los Angeles school district bonds.
4. John received $5,300 interest from a Me
ill Lynch money market account.
5. John received $15,000 of a dividend on Ford Motor Company stock that he has owned for over 2
years.
6. Joan received 50 shares of Applegate Corporation common stock as a stock dividend. The shares
had a fair market value of $2,500 at the time Joan received them, and she did not have the
option of receiving cash.
7. John and Joan received a $5,500 refund on their 2017 California income taxes. They
itemized deductions in 2017.
8. John paid $20,000 alimony to his former wife, Rose Smith (Social Security number 123-45-
6786). The divorce was finalized in 2012.
9. John and Joan kept the receipts for their sales taxes paid of $2,100.
10. John and Joan’s itemized deductions for 2018 were as follows:
 State income tax paid and withheld from his salary totaled $15,100.
 Real estate taxes on their principal residence were $6,800.
 Mortgage interest on their principal residence was $20,500.
 Cash contributions to the church totaled $15,800.
 Medical Expenses related to Doctors, etc. of $5,000 (Note these expenses were paid out
of their Health Savings Account see below).
 Job related unreimbursed expenses of $5,700 related to travel.
 Tax Preparation Fees of $2,500.
 Contributions to the Mayor of Newport Beach’s campaign were $3,500.
11. John and Joan set up their own Health Savings Account through Me
ill Lynch for the maximum
amount allowed. The medical plan at Red Steel Corporation is a high deductible plan.
12. John and Joan wish to contribute the maximum to an Individual Retirement Account for 2018.
There is no option to contribute to a retirement at work.
13. John and Joan contributed $10,000 for each child to separate qualified tuition plan for each child.

Compute the Smith’s net federal tax payable (or refund due XXXXXXXXXXUse the 1040 and applicable other
forms that you need to file a return with the IRS for 2018. Do not prepare the California return. You
have been provided Intuit to complete this assignment. You can also use your own software or prepare
y hand. In addition to the federal returns for 2018, you need to prepare a na
ative explaining all the
items in this problem and why income items are taxable or nontaxable and why deduction items are
deductible or not deductible. Lastly, you need to discuss the 2018 return and describe in your na
ative
your observations of the Smiths’ tax situation and impacts of the Tax Cuts Job Act of 2017 (tax reform) to
their tax situation. Returns turned in without a na
ative will not any get credit for this assignment.
The assignment is due October 15, 2019 at class time via hard copy IN CLASS. DO NOT turn in via e mail
or on Titanium. If you are not in class you need permission from Professor Gershenovitz to turn in
via e mail.

acct-308-fall-2019-practice-set-1-pw3c2sal.pdf

Bhavani · Accepted Answer

GTI to PDF Conversion -- 797a479a-4b81-614e-f79a-297df60b8f05.pdf
ABC
,
714-902-7278
October 12, 2019
John Mr and Joan MRS Smith
512 Ferry Road
Newport Beach, CA 92603
US
Dear John and Joan,
Your 2018 Federal Individual Income Tax return will be electronically
filed with the Internal Revenue Service upon receipt of a signed Form
8879 - IRS e-file Signature Authorization.  No tax is payable with the
filing of this return.  You will receive a refund of $15,987.
Under the Affordable Care Act, either you or another member of your
household did not have health coverage or an exemption for one or more
months during 2018. There is an individual shared responsibility payment
of $3,698, which reduced the refund on your tax return.
The contribution to your traditional IRA for 2018 is $6,500.  To ensure
that your contribution is allowable, $6,500 must be deposited to your
account on or before April 15, 2019.  The contribution to your spouse's
traditional IRA for 2018 is $5,500.  To ensure that your spouse's
contribution is allowable, $5,500 must be deposited to your spouse's
account on or before April 15, 2019.
The deductible contribution to your Health Savings Account for 2018 is
$3,450.  To ensure that your contribution is allowable, $3,450 must be
deposited to your account on or before April 15, 2019.  The deductible
contribution to your spouse's Health Savings Account for 2018 is $3,450.
To ensure that your spouse's contribution is allowable, $3,450 must be
deposited to your spouse's account on or before April 15, 2019.
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 $8,008.
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,
Trang Phan
2018 Tax Reform Impact Summary Page 1
John Mr and Joan MRS Smith 111-11-1111
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 210,800
ADJUSTMENTS TO INCOME
Other adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 38,900
Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 38,900
Adjusted gross income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 171,900
ITEMIZED DEDUCTIONS
Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 10,000
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 20,500
Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 250
Total itemized deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 30,750
TAX COMPUTATION
Standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0
Larger of itemized or standard deduction. . . . . . . . . . . . . . . . . . . 0 30,750
Income prior to exemption deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . 0 141,150
Exemption deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0
Taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 141,150
Tax before credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 21,882
NONREFUNDABLE CREDITS
Child tax credit/credit for other dependents. . . . . . . . . . . . . 0 4,000
Total nonrefundable credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 4,000
Tax after credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 17,882
OTHER TAXES
Other taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 3,881
Total tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 21,763
PAYMENTS AND REFUNDABLE CREDITS
Income tax withheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 37,750
Total payments and refundable credits. . . . . . . . . . . . . . . . . . . . . . . . 0 37,750
REFUND OR AMOUNT DUE
Amount overpaid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 15,987
Amount refunded to you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 15,987
Amount you owe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0
TAX RATES
Marginal tax rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0% 22.0%
2018 Tax Reform Impact Summary Page 2
John Mr and Joan MRS Smith 111-11-1111
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 standard deduction on this return changed from $ in 2017, to $ in 2018.
NONREFUNDABLE CREDITS
The Tax Cuts and Jobs Act added a new credit for other dependents of $500 per
eligible dependent.
OTHER TAXES
The Tax Cuts and Jobs Act removes the penalty for failure to purchase health
insurance starting in 2019.
INCOME
Wages, salaries, tips, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,300
Refunds of state and local taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500
Total income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,800
ADJUSTMENTS TO INCOME
Health savings account deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,900
Alimony paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,900
Adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,900
ITEMIZED DEDUCTIONS
Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
Total itemized deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,750
TAX COMPUTATION
Standard deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
Larger of itemized or standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,750
Income prior to exemption deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,150
Taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,150
Tax before credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,882
CREDITS
Child tax credit & other dependent cr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Total credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Tax after credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,882
OTHER TAXES
Tax on IRAs, other qual. ret. plans, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Health care: individual responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,698
Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,763
PAYMENTS
Federal income tax withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,750
Total payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,750
REFUND OR AMOUNT DUE
Amount overpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,987
Amount refunded to you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,987
Amount you owe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
TAX RATES
Marginal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.0%
2018 Federal Income Tax Summary Page 1
John Mr and Joan MRS Smith 111-11-1111
FEDERAL ADJUSTED GROSS INCOME
Federal adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,900
CALIFORNIA SUBTRACTIONS
State tax refund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,500
Adjustments to income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -6,900
Total subtractions from federal AGI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1,400
ADJUSTED GROSS INCOME
Adjusted gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,300
ITEMIZED DEDUCTIONS
Itemized deduction before limitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,550
California itemized deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,550
California standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,802
TAX COMPUTATION
Total taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,750
Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,062
Exemption credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 970
Net tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,092
PAYMENTS
California income tax withheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,100
Total payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,100
REFUND OR AMOUNT DUE
Amount overpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,008
Amount you owe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
Amount refunded to you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,008
TAX RATES
Marginal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3%
2018 California Income Tax Summary Page 1
John Mr and Joan MRS Smith 111-11-1111
OMB No. 1545-0074
IRS e-file Signature AuthorizationForm 8879
G Return completed Form 8879 to your ERO. (Don't send to the IRS.) 2018
Department of the Treasury GGo to www.irs.gov/Form8879 for the latest information.Internal Revenue Service
Submission Identification Number (SID) A
Taxpayer's name Social security number
Spouse's name Spouse's social security number
Tax Return Information ' Tax Year Ending December 31, 2018 (Whole dollars only)Part I
1 1Adjusted gross income (Form 1040, line 7;  Form 1040NR, line 35). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Total tax (Form 1040, line 15; Form 1040NR, line 61). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2
3Federal income tax withheld from Forms W-2 and 1099 (Form 1040, line 16; Form 1040NR, line 62a). . . . . . . . 3
4Refund (Form 1040, line 20a; Form 1040-SS, Part I, line 13a; Form 1040NR, line 73a). . . . . . . . . . . . . . . . . . . . . . 4
Amount you owe (Form 1040, line 22; Form 1040NR, line 75). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5
Taxpayer Declaration and Signature Authorization (Be sure you get and keep a copy of your return)Part II
Under penalties of perjury, I declare that I have examined a copy of my electronic individual income tax return and accompanying schedules and statements for the tax year ending
December 31, 2018, and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that the amounts in Part I above are the amounts from my
electronic income tax return. I consent to allow my intermediate service provider, transmitter, or electronic return originator (ERO) to send my return to the IRS and to receive from
the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission, (b) the reason for any delay in processing the return or refund, and (c) the date of any refund.
If applicable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an ACH electronic funds withdrawal (direct debit) entry to the financial institution account
indicated in the tax preparation software for payment of my federal taxes owed on this return and/or a payment of estimated tax, and the financial institution to debit the entry to
this account. This authorization is to remain in full force and effect until I notify the U.S. Treasury Financial Agent to terminate the authorization. To revoke (cancel) a payment, I
must contact the U.S. Treasury Financial Agent at 1-888-353-4537. Payment cancellation requests must be received no later than 2 business days prior to the payment (settlement)
date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and
resolve issues related to the payment. I further acknowledge that the personal identification number (PIN) below is my signature for my electronic income tax return and, if applicable,
my Electronic Funds Withdrawal Consent.
Taxpayer's PIN: check one box only
I authorize to enter or generate my PIN
ERO firm name Enter five digits, but
don't enter all zeros
as my signature on my tax year 2018 electronically filed income tax return.
I will enter my PIN as my signature on my tax year 2018 electronically filed income tax return. Check this box only if you are entering your
own PIN and your return is filed using the Practitioner PIN method. The ERO must complete Part III below.
Your signature DateG G
Spouse's PIN: check one box only
I authorize to enter or generate my PIN
ERO firm name Enter five digits, but
don't enter all zeros
as my signature on my tax year 2018 electronically filed income tax return.
I will enter my PIN as my signature on my tax year 2018 electronically filed income tax return. Check this box only if you are entering your
own PIN and your return is filed using the Practitioner PIN method. The ERO must complete Part III below.
Spouse's signature DateG G
Practitioner PIN Method Returns Only ' continue below
Certification and Authentication ' Practitioner PIN Method OnlyPart III
ERO's EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN.
Don't enter all zeros
I certify that the above numeric entry is my PIN, which is my signature for the tax year 2018 electronically filed income tax return for the
taxpayer(s) indicated above. I confirm that I am submitting this return in accordance with the requirements of the Practitioner PIN method
and Pub. 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.
ERO's signature DateG G
ERO Must Retain This Form ' See Instructions
Don't Submit This Form to the IRS Unless Requested To Do So
BAA For Paperwork Reduction Act Notice, see your tax return instructions. Form 8879 (2018)
FDIA1701L   11/12/18
John Smith Mr 111-11-1111
Joan Smith MRS 234-56-7891
171,900.
21,763.
37,750.
15,987.
X ABC 50258
X ABC 62593
Trang Phan
(99)Department of the Treasury ' Internal Revenue Service
Form 1040 2018 IRS Use Only ' Do not write or staple in this space.U.S. Individual Income Tax Return OMB No. 1545-0074
Filing status: Single Married filing jointly Married filing separately Head of household Qualifying widow(er)
Your first name and initial Last name Your social security number
Your standard deduction: Someone can claim you as a dependent You were born before January 2, 1954 You are blind
If joint return, spouse's first name and initial Last name Spouse's social security number
Full-year health care coverageSpouse standard deduction: Someone can claim your spouse as a dependent Spouse was born before January 2, 1954
or exempt (see inst.)
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. Presidential Election Campaign
(see inst.)
You Spouse
If more than four dependents,City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6.
see inst. and b here G
(2) Social securityDependents (see instructions): (3) Relationship to you (4)  b if qualifies for (see inst.):
number(1) First name Last name 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, theySign
are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Here Your signature Date Your occupation If the IRS sent you an Identity Protection
PIN, enter itJoint return?
here (see inst.)See instructions. A Date Spouse's occupation If the IRS sent you an Identity ProtectionSpouse's signature. If a joint return, both must sign.Keep a copy PIN, enter it
here (see inst.)for your records.
Preparer's name Preparer's signature PTIN Firm's EIN Check if:
3rd Party DesigneePaid
Self-employedGFirm's name Phone no.Preparer
GFirm's addressUse Only
FDIA0112L   01/08/19BAA  For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2018)
Form 1040 (2018) Page 2
Attach Form(s) Wages, salaries, tips, etc. Attach Form(s) W-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1
W-2. Also attach
Tax-exempt interest. . . . . . . . . . . . . 2a 2a b Taxable interest . . . . . 2bForm(s) W-2G
and 1099-R if tax
Qualified dividends. . . . . . . . . . . . . . 3a 3a b Ordinary dividends. . . 3bwas withheld.
IRAs, pensions, and annuities . . . 4a 4a b Taxable amount . . . . . 4b
5a Social security benefits. . . . . . . . . . 5a b Taxable amount . . . . . 5b
6 6Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 . . . . 
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 9Qualified business income deduction (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . married filing
separately,
10 10Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter '0'. . . . . . . . . . . $12,000
1Tax (see inst.) (check if any from: Form(s) 8814a11? Married filing
2 3 )Form 4972jointly or
Qualifying 11b Add any amount from Schedule 2 and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gwidow(er),
$24,000 12 a Child tax credit/credit for other dependents
? Head of 12Add any amount from Schedule 3 and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b G
household,
13 Subtract line 12 from line 11. If zero or less, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13$18,000
Other taxes. Attach Schedule 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 14
? If you
15 Total tax. Add lines 13 and 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15checked any
16 16Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . box under
17 aStandard Refundable credits: EIC (see inst.)
deduction, see b cSch. 8812 Form 8863
instructions. Add any amount from Schedule 5 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
18 Add lines 16 and 17. These are your total payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 19If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid . . . . . . . . . . . . . . . Refund
G20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here. . 20a
G Routing number . . . . . . . . Type: Checking SavingsDirect deposit? b cG
See instructions. Account number. . . . . . . . dG
G21 21Amount of line 19 you want applied to your 2019 estimated tax. . . . . . . . 
2222 GAmount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions. . . . . . . . . . . . . . . Amount You Owe
23Estimated tax penalty (see instructions). . . . . . . . . . . . . . . . . . G23
Form 1040 (2018)Go to www.irs.gov/Form1040 for instructions and the latest information.
171,900.
30,750.
141,150.
21,882.
4,000.
4,000.
17,882.
21,763.
37,750.
37,750.
15,987.
15,987.
XXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXX
21,882.
200,000.
5,300.
15,000.
210,800.
3,881.
5,500.
John Smith Mr 111-11-1111
Joan Smith MRS 234-56-7891
512 Ferry Road
X
Newport Beach, CA 92603
Construction Engin
N/A
X
X
,
714-902-7278
Ryan, Smith 123-45-6788 Daughter X
Ashley’ Smith 123-45-6787 Daughter X
Trang Phan Trang Phan
ABC
OMB No. 1545-0074SCHEDULE 1
Additional Income and Adjustments to Income(Form 1040)
2018
A Attach to Form 1040.
Department of the Treasury Attachment
A Go to www.irs.gov/Form1040 for instructions and the latest information.Internal Revenue Service 01Sequence No.
Your social security numberName(s) shown on Form 1040
1'9bReserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1'9bAdditional
10Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . 10Income
11 11Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Business income or (loss). Attach Schedule C or C-EZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 12
1313 Capital gain or (loss). Attach Schedule D if required. If not required, check here. . . . . . . . . . G
14 14Other gains or (losses). Attach Form 4797. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
15a 15bReserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
16bReserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a
17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 17
18 18Farm income or (loss). Attach Schedule F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
19 19Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a 20b
21 21Other income. List type and amount
Combine the amounts in the far right column. If you don't have any adjustments to22
income, enter here and include on Form 1040, line 6. Otherwise, go to line 23. . . . . . . . . . . 22
23 23Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjustments
to Income Certain business expenses of reservists, performing artists,24
24and fee-basis government officials. Attach Form 2106. . . . . . . 
25 25Health savings account deduction. Attach Form 8889. . . . . . . . 
26 Moving expenses for members of the Armed Forces.
26Attach Form 3903. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
27 27Deductible part of self-employment tax. Attach Schedule SE. . . . . . . . . . . . . . 
28 28Self-employed SEP, SIMPLE, and qualified plans. . . . . . . . . . . 
29 29Self-employed health insurance deduction. . . . . . . . . . . . . . . . . . 
30 30Penalty on early withdrawal of savings. . . . . . . . . . . . . . . . . . . . . 
GAlimony paid b Recipient's SSN31a 31a
32 32IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
33 33Student loan interest deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . 
34 34Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
35 35Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
36 36Add lines 23 through 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
BAA  For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040) 2018
FDIA0103L   01/21/19
John Mr and Joan MRS Smith 111-11-1111
5,500.
5,500.
12,000.
20,000.
38,900.
6,900.
123-45-6786
OMB No. 1545-0074SCHEDULE 4
Other Taxes(Form 1040)
2018
A Attach to Form 1040.
Department of the Treasury Attachment
A Go to www.irs.gov/Form1040 for instructions and the latest information.Internal Revenue Service 04Sequence No.
Your social security numberName(s) shown on Form 1040
57 57Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other
Unreported social security and Medicare tax from: Form 4137a58Taxes
8919 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b 58
Additional tax on IRAs, other qualified retirement plans, and other tax-favored59
accounts. Attach Form 5329 if required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Household employment taxes. Attach Schedule H. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60a 60a
Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 ifb
required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60b
Health care: individual responsibility (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6161
62 Taxes from: Form 8959 Form 8960a b
Instructions; enter code(s)c 62
Section 965 net tax liability installment from Form 965-A . . . . 63 63
Add the amounts in the far right column. These are your total other taxes. Enter here64
and on Form 1040, line 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
BAA  For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 4 (Form 1040) 2018
FDIA0106L   08/02/18
John Mr and Joan MRS Smith 111-11-1111
183.
3,881.
3,698.
OMB No. 1545-0074SCHEDULE A Itemized Deductions
(Form 1040)
G Go to www.irs.gov/ScheduleA for instructions and the latest information. 2018
G Attach to Form 1040.
Department of the Treasury Attachment
Internal Revenue Service Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16.(99) Sequence No. 07
Your social security numberName(s) shown on Form 1040
Caution: Do not include expenses reimbursed or paid by others.Medical
and 1 Medical and dental expenses (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . 1
Dental
2 2Enter amount from Form 1040, line 7. . . . . . Expenses
3 Multiply line 2 by 7.5% (0.075) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 State and local taxes.Taxes You
Paid 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.. . . . . . . . . . . . . . . . . . . . . . . 5aG
b 5bState and local real estate taxes (see instructions) . . . . . . . . . . . . . . . . . . . . . . . 
c State and local personal property taxes. . . . . . . . . . . . . . . . . . . . . . . 5c
d Add lines 5a through 5c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5d
e Enter the smaller of line 5d or $10,000 ($5,000 if married filing
separately). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5e
6 Other taxes. List type and amount G
6
7 7Add lines 5e and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
8 Home mortgage interest and points. If you didn't use all of yourInterest
You Paid home mortgage loan(s) to buy, build, or improve your home,
see instructions and check this box. . . . . . . . . . . . . . . . . . . . Caution: G
Your mortgage a Home mortgage interest and points reported to you on Form
interest
1098.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8adeduction may
be limited (see b Home mortgage interest not reported to you on Form 1098. If
instructions). paid to the person from whom you bought the home, see
instructions and show that person's name, identifying no., and
address G
8b
8cc Points not reported to you on Form 1098. See instructions for special rules. . . . . 
d Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

John Smith (Social Security number XXXXXXXXXXis 50 years old and is married to Joan Smith (Social Security number XXXXXXXXXXThe Smiths live at 512 Ferry Road, Newport Beach, CA XXXXXXXXXXThey file a...

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