American College of California ACTG 67 Tax Accounting

User Generated

anan01

Business Finance

Description

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:

  1. Review Jones Form 1040
  2. Go to California Franchise Tax Board website: https://www.ftb.ca.gov/ (Links to an external site.)Links to an external site.
  3. Download fill-in California Form 540 and Schedule 540(CA) and Form Instructions.
  4. Start with 540(CA) to identify Federal/California differences
  5. Move to Form 540 - line 13 is Federal AGI $188,556
  6. Use 540 Instructions, CA (540) to complete Form 540

Post your questions for discussion.

Check figure: Form 540, Line 94 Overpaid Tax is $2,349.

Unformatted Attachment Preview

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.
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hello,hope you had a nice rest,I have completed the assignment,kindly check attached files in pdf format for: Schedule CA (540) & California Form 540

TAXABLE YEAR

2018

FORM

California Resident Income Tax Return

Check here if this is an AMENDED return.
Your first name

Fiscal year filers only: Enter month of year end: month________ year 2019.

Initial Last name

JACK

J

If joint tax return, spouse’s/RDP’s first name

NORMA

Suffix

Your SSN or ITIN

JONES

6 14 - 8 0 - 2 2 2 2

Initial Last name

N

540

Suffix

Spouse’s/RDP’s SSN or ITIN

JONES

6 18 - 7 0 - 3 3 3 3

Additional information (see instructions)

A
R

PBA code

Street address (number and street) or PO box

Apt. no/ste. no.

PMB/private mailbox

RP

15 Maple Street
City (If you have a foreign address, see instructions)

State

San Jose

C A

Prior Date of
Name Birth

Foreign country name

9 5 1 3 4

Foreign province/state/county

Your DOB (mm/dd/yyyy)



ZIP code

Foreign postal code

Spouse's/RDP's DOB (mm/dd/yyyy)



0 5 / 0 1 / 19 6 7
Your prior name (see instructions)

0 6 / 0 2 / 19 6 9
Spouse’s/RDP’s prior name (see instructions)





Filing
Status

If your California filing status is different from your federal filing status, check the box here. . . . . . . . . . . . . . .
1

Single

4

2

Married/RDP filing jointly. See inst.

5



Head of household (with qualifying person). See instructions.
Qualifying widow(er). Enter year spouse/RDP died
See instructions.

3
6

Married/RDP filing separately. Enter spouse’s/RDP’s SSN or ITIN above and full name here
If someone can claim you (or your spouse/RDP) as a dependent, check the box here. See inst. . . . . . . .



6

Exemptions

 For line 7, line 8, line 9, and line 10: Multiply the amount you enter in the box by the pre-printed dollar amount for that line.
7 Personal: If you checked box 1, 3, or 4 above, enter 1 in the box. If you checked
box 2 or 5, enter 2, in the box. If you checked the box on line 6, see instructions. .  7
8 Blind: If you (or your spouse/RDP) are visually impaired, enter 1;
if both are visually impaired, enter 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
9 Senior: If you (or your spouse/RDP) are 65 or older, enter 1;
if both are 65 or older, enter 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9
10 Dependents: Do not include yourself or your spouse/RDP.
Dependent 2
Dependent 1
First Name
Last Name
SSN
Dependent's
relationship
to you

X $118 =  $

1

X $118 =  $




















10

X $367 =  $

Exemption amount: Add line 7 through line 10. Transfer this amount to line 32. . . . . . . . . . . . . . . . . . . . .  11

3101183

118

Dependent 3





118

X $118 =  $



Total dependent exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11

1

Whole dollars only

$

Form 540 2018 Side 1

236

Your SSN or ITIN:

Taxable Income

Your name:

13

Enter federal adjusted gross income from Form 1040, line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13

14

California adjustments – subtractions. Enter the amount from Schedule CA (540), line 37, column B . . . .

15

Subtract line 14 from line 13. If less than zero, enter the result in parentheses. See instructions. . . . . . . .

16

California adjustments – additions. Enter the amount from Schedule CA (540), line 37, column C. . . . . . .



188,556 . 00

14

11,000 . 00

15

177,556 . 00

16

600 . 00

17

178,156 . 00

18

23,530 . 00

19

Subtract line 18 from line 17. This is your taxable income. If less than zero, enter -0- . . . . . . . . . . . . . . .  19

154,626 . 00

31

Tax. Check the box if from:

17
18


California adjusted gross income. Combine line 15 and line 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Enter the
larger of

{

Your California itemized deductions from Schedule CA (540), Part II, line 30; OR
Your California standard deduction shown below for your filing status:
• Single or Married/RDP filing separately. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,401
• Married/RDP filing jointly, Head of household, or Qualifying widow(er). . . . . . . $8,802

{

If Married/RDP filing separately or the box on line 6 is checked, STOP. See instructions . . . .



Tax Table



Tax Rate Schedule



31

8,887 . 00

32

Exemption credits. Enter the amount from line 11. If your federal AGI is more than $194,504,
see instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  32

236 . 00

33

Subtract line 32 from line 31. If less than zero, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  33

8,651 . 00

34

Tax. See instructions. Check the box if from:

34

0 . 00

35

Add line 33 and line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  35

8,651 . 00

40

Nonrefundable Child and Dependent Care Expenses Credit. See instructions . . . . . . . . . . . . . . . . . . . . . . .

Tax
Special Credits

12

165,000 . 00

State wages from your Form(s) W-2, box 16. . . . . . . . . . . . . . . . . . . . . . . .



Other Taxes



12

FTB 3800





FTB 3803. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedule G-1



FTB 5870A. . . . . . . . . . .



46


Enter credit name
code 
and amount. . . . 
Enter credit name
code 
and amount. . . . 
To claim more than two credits, see instructions. Attach Schedule P (540). . . . . . . . . . . . . . . . . . . . . . . . . 
Nonrefundable renter’s credit. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

46

0 . 00

47

Add line 40 through line 46. These are your total credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47

0 . 00

48

Subtract line 47 from line 35. If less than zero, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  48

8,651 . 00

43
44
45


Mental Health Services Tax. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other taxes and credit recapture. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Add line 48, line 61, line 62, and line 63. This is your total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

40

0 . 00

43

0 . 00

44

0 . 00

45

0 . 00

61 Alternative minimum tax. Attach Schedule P (540). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

61

. 00

62

62

0 . 00

63

0 . 00

64

8,651 . 00

63
64

Side 2 Form 540 2018

3102183

Your SSN or ITIN:

Your name:

11,000 . 00

75

 71
2018 CA estimated tax and other payments. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  72
Withholding (Form 592-B and/or 593). See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  73
Excess SDI (or VPDI) withheld. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  74
Earned Income Tax Credit (EITC). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  75

76

Add lines 71 through 75. These are your total payments. See instructions. . . . . . . . . . . . . . . . . . . . . . . . .  76

11,000 . 00

91

Use Tax. Do not leave blank. See instructions. . . . . . . . . . . . . . . . . . . . . . .

71

Use Tax

Payments

72
73
74

California income tax withheld. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If line 91 is zero, check if:





91

0 . 00
0 . 00
0 . 00

. 00

0 . 00

No use tax is owed.

Overpaid Tax/Tax Due

You paid your use tax obligation directly to CDTFA.
92

Payments balance. If line 76 is more than line 91, subtract line 91 from line 76. . . . . . . . . . . . . . . . . . . . .  92

11,000 . 00

93

Use Tax balance. If line 91 is more than line 76, subtract line 76 from line 91. . . . . . . . . . . . . . . . . . . . . .  93

. 00

94

Overpaid tax. If line 92 is more than line 64, subtract line 64 from line 92 . . . . . . . . . . . . . . . . . . . . . . . . .  94

2,349 . 00

95

Amount of line 94 you want applied to your 2019 estimated tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

96


Overpaid tax available this year. Subtract line 95 from line 94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

96

2,349 . 00

97

Tax due. If line 92 is less than line 64, subtract line 92 from line 64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  97

. 00

95

0 . 00

Contributions

Code Amount
California Seniors Special Fund. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  400

. 00

Alzheimer’s Disease and Related Dementia Voluntary Tax Contribution Fund . . . . . . . . . . . . . . . . . . .  401

. 00

Rare and Endangered Species Preservation Voluntary Tax Contribution Program. . . . . . . . . . . . . . . .  403

. 00

This space reserved for 2D barcode

This space reserved for 2D barcode
3103183

Form 540 2018 Side 3

Your SSN or ITIN:

Your name:

Contributions

Code Amount
California Breast Cancer Research Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . . . . . . . . . .  405

. 00

California Firefighters’ Memorial Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  406

. 00

Emergency Food for Families Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  407

. 00

California Peace Officer Memorial Foundation Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  408

. 00

California Sea Otter Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  410

. 00

California Cancer Research Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  413

. 00

School Supplies for Homeless Children Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  422

. 00

State Parks Protection Fund/Parks Pass Purchase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  423

. 00

Protect Our Coast and Oceans Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  424

. 00

Keep Arts in Schools Voluntary Tax Contribution Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  425

. 00

State Children’s Trust Fund for the Prevention of Child Abuse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  430

. 00

Prevention of Animal Homelessness and Cruelty Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  431

. 00

Revive the Salton Sea Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  432

. 00

California Domestic Violence Victims Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  433

. 00

Special Olympics Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  434

. 00

Type 1 Diabetes Research Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  435

. 00

California YMCA Youth and Government Voluntary Tax Contribution Fund . . . . . . . . . . . . . . . . . . . . .  436

. 00

Habitat for Humanity Voluntary Tax Contribution Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  437

. 00

California Senior Citizen Advocacy Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . . . . . . . . . .  438

. 00

Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . . . . . .  439

. 00

Rape Backlog Kit Voluntary Tax Contribution Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  440

. 00

Organ and Tissue Donor Registry Voluntary Tax Contribution Fund . . . . . . . . . . . . . . . . . . . . . . . . . .  441

. 00

National Alliance on Mental Illness California Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . .  442

. 00

Schools Not Prisons Voluntary Tax Contribution Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  443

. 00

110 Add code 400 through code 443. This is your total contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  110

. 00

Side 4 Form 540 2018

3104183

Interest and
Penalties

Amount
You Owe

Your name:

Jack Jones

Your SSN or ITIN:

111 AMOUNT YOU OWE. If you do not have an amount on line 96, add line 93, line 97, and line 110. See instructions. Do not send cash.
Mail to: FRANCHISE TAX BOARD
PO BOX 942867
,
SACRAMENTO CA 94267-0001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  111
,
Pay online – Go to ftb.ca.gov/pay for more information.

. 00

112 Interest, late return penalties, and late payment penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

0 . 00

113 Underpayment of estimated tax. Check the box: 

113

0 . 00

114 Total amount due. See instructions. Enclose, but do not staple, any payment. . . . . . . . . . . . . . . . . . . . . . . . . . 114

0 . 00

FTB 5805 attached



FTB 5805F attached



115 REFUND OR NO AMOUNT DUE. Subtract the sum of line 110, line 112 and line 113 from line 96. See instructions.
Mail to: FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  115
,
Refund and Direct Deposit

0

2 3 4 9
,

. 00

Fill in the information to authorize direct deposit of your refund into one or two accounts. Do not attach a voided check or a deposit slip. See instructions.
Have you verified the routing and account numbers? Use whole dollars only.
All or the following amount of my refund (line 115) is authorized for direct deposit into the account shown below:




Type

Routing number

Checking

1 2 3

✔ Savings





Account number

116 Direct deposit amount

0 1 2 3 4 5 6 7 8 9

2 3 4 8
,

,

. 00

The remaining amount of my refund (line 115) is authorized for direct deposit into the account shown below:
 Type



Routing number

Checking





Account number

117 Direct deposit amount

. 00

,

,

Savings
IMPORTANT: See the instructions to find out if you should attach a copy of your complete federal tax return.

To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to ftb.ca.gov/forms
and search for 1131. To request this notice by mail, call 800.852.5711. Under penalties of perjury, I declare that I have examined this tax return, including
accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete.
Your signature

Date

Spouse’s/RDP’s signature (if a joint tax return, both must sign)

0 6 / 16 2 0 19

Sign
Here
It is unlawful
to forge a
spouse’s/RDP’s
signature.
Joint tax return?
(See instructions)



Your email address. Enter only one email address.



Preferred phone number

(    )
0 10 - 12 3 4

abcde@hotmail

Paid preparer’s signature (declaration of preparer is based on all information of which preparer has any knowledge)

 PTIN

Firm’s name (or yours, if self-employed)

Jack Jones

6

1 4

Firm’s address

 Firm’s FEIN

Do you want to allow another person to discuss this tax return with us? See instructions . . .



Print Third Party Designee’s Name

Yes

-



8 0

-

No

Telephone Number

(    )

3105183

Form 540 2018 Side 5

2 2


TAXABLE YEAR

2018

SCHEDULE

California Adjustments — Residents

CA (540)

Important: Attach this schedule behind Form 540, Side 5 as a supporting California schedule.
Names(s) as shown on tax return

SSN or ITIN

A

Federal Amounts
(taxable amounts from
your federal tax return)

Wages, salaries, tips, etc. See instructions before making an entry in column B or C . . . . 1 

165,000

Part I Income Adjustment Schedule
Section A – Income from federal Form 1040

B

. . . . . . . . . 4(b) 
. . . . . . . . . . 5(b) 







Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . 10 



12 Business income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 
13 Capital gain or (loss). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 
14 Other gain...


Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags