FORM1040 Yale University Qualified Dividends and Capital Gain Tax Worksheet

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FORM1040

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  • Step 1: Read the information below and download the taxpayer information based on the last two digits of your REDid:
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  • Step 2: Download the blank forms on which to complete the assignment Blank Form 1040
  • Step 3: Complete the Schedule B first, then Schedule 1, then the Form 1040 down through Line 10. Then complete the Qual Div worksheet and use that information to complete the rest of the Form 1040.
  • Step 4: Submit all 4 documents to complete the assignment.

(STEPS 1 AND 2 ARE COMPLETED AND ALREADY ATTACHED, AS THEY ARE NEEDED)

(USE INFO BELOW TO COMPLETE STEPS 3 AND 4)

(FEW MORE DOCS ARE NEEDED AS I WILL ATTACH IN OUR CHAT)


Alexander Smith and his wife Allison are married and file a joint tax return for 2018. The Smiths live at 1234 Buena Vista Drive, Orlando, FL 32830. Alexander is a commuter airline pilot but took 6 months off from his job in 2018 to obtain a higher level pilot’s license. The Smiths have a 17 year-old son, Brad, who is enrolled in eleventh grade at the Walt Disney Prep School. The Smiths also have an 18 year-old daughter, Angelina, who is a part-time first year student at Orange County Community College (OCCC). Angelina is married to Sean Shirker, who is 19 years old and also a part-time student at OCCC. Sean and Angelina have a 1 year old child, Trask (Social Security number 115-45-7893). All the Shirkers live in an apartment near the Smiths. Angelina and Sean both also work part-time for Sean’s wealthy grandfather as apprentices in his business. The Shirker’s wages for the year were $50,000 which allowed them to pay all the personal expenses for themselves and Trask.

Name

Social Security number

Date of birth

Alexander Smith

266-15-1966

09/22/1969

Allison Smith

266-34-1967

07/01/1970

Brad Smith

261-55-2121

12/21/2001

Angelina Shirker

261-45-1212

03/31/2000

Sean Shirker

546-78-1235

05/01/1999

Trask Shirker

115-45-7893

10/21/2017

Five years ago, Alexander divorced Jennifer Amistad (Social Security number 341-55-6789). Alexander pays Jennifer $200 per month in alimony under the divorce decree.

Not included with the Smith’s tax forms was interest from State of Florida bonds of $145.00.

Alexander also received a Form W-2, Form 1099-INT, and Form 1099-DIV that you should have downloaded in Step 1 above.

Unformatted Attachment Preview

Form 1040 U.S. Individual Income Tax Return 2018 (99) Department of the Treasury—Internal Revenue Service Filing status: Single Married filing jointly Your first name and initial Qualifying widow(er) Your social security number Someone can claim you as a dependent If joint return, spouse's first name and initial Spouse is blind Head of household IRS Use Only—Do not write or staple in this space. Last name Your standard deduction: Spouse standard deduction: Married filing separately OMB No. 1545-0074 You were born before January 2, 1954 You are blind Spouse’s social security number Last name Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 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. City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Dependents (see instructions): (1) First name (2) Social security number Full-year health care coverage or exempt (see inst.) Presidential Election Campaign (see inst.) You Spouse If more than four dependents, see inst. and ✓ here ▶ (3) Relationship to you Last name (4) ✓ if qualifies for (see inst.): Child tax credit Credit for other dependents Sign Here 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. Joint return? See instructions. Keep a copy for your records. ▲ Paid Preparer Use Only Your signature Date Your occupation Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation Preparer’s name Preparer’s signature PTIN If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Firm’s EIN Check if: 3rd Party Designee Firm’s name ▶ Phone no. Self-employed Firm’s address ▶ For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2018) Page 2 Form 1040 (2018) Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. Standard Deduction for— • Single or married filing separately, $12,000 • Married filing jointly or Qualifying widow(er), $24,000 • Head of household, $18,000 • If you checked any box under Standard deduction, see instructions. Refund Direct deposit? See instructions. 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . 1 2a Tax-exempt interest . . . 3a Qualified dividends . . . 2a b Taxable interest . . . 2b 3a b Ordinary dividends . . 4a 3b IRAs, pensions, and annuities . 4a b Taxable amount . . . 4b 5a Social security benefits 5a b Taxable amount . . . 5b 6 7 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 . . . . . Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6 . . . . . . . . . . . . . . . . . 6 8 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . . . 8 9 Qualified business income deduction (see instructions) . . . . . . . . . . . . 9 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- . . . . . . . . 10 11 a Tax (see inst.) Form 4972 3 . . . . . . (check if any from: 1 . . . . . . 2 Form(s) 8814 b Add any amount from Schedule 2 and check here . . . . . . . . . . . . . . . 7 ) 11 ▶ 12 12 a Child tax credit/credit for other dependents 13 Subtract line 12 from line 11. If zero or less, enter -0- . . . . . . . . . . . . . . 13 14 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . . . 14 15 Total tax. Add lines 13 and 14 . . . . . . . . . . . . . . . . . . . 15 16 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . 16 17 Refundable credits: a EIC (see inst.) . b Add any amount from Schedule 3 and check here ▶ b Sch. 8812 c Form 8863 Add any amount from Schedule 5 . . . . . . . . . . . . . . 17 18 Add lines 16 and 17. These are your total payments . . . . . . . . . . . . . . 18 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid . . . . 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here . ▶ ▶ b Routing number ▶ d Account number 21 Amount You Owe 22 23 ▶ Amount of line 19 you want applied to your 2019 estimated tax . c Type: . ▶ . . Checking . Go to www.irs.gov/Form1040 for instructions and the latest information. . . . . . . ▶ 19 20a Savings 21 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions Estimated tax penalty (see instructions) . . . . . ▶ 22 23 Form 1040 (2018) SCHEDULE 1 OMB No. 1545-0074 Additional Income and Adjustments to Income (Form 1040) Department of the Treasury Internal Revenue Service ▶ Go 1–9b 10 11 12 13 14 15a 16a 17 18 19 20a 21 22 Adjustments to Income 23 24 25 26 27 28 29 30 31a 32 33 34 35 36 Attachment Sequence No. 01 Your social security number Name(s) shown on Form 1040 Additional Income 2018 ▶ Attach to Form 1040. to www.irs.gov/Form1040 for instructions and the latest information. Reserved . . . . . . . . . . . . . . . . . . . . . . . . 1–9b Taxable refunds, credits, or offsets of state and local income taxes . . . . . 10 Alimony received . . . . . . . . . . . . . . . . . . . . . . 11 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . 12 Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶ 13 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 14 Reserved . . . . . . . . . . . . . . . . . . . . . . . . 15b Reserved . . . . . . . . . . . . . . . . . . . . . . . . 16b Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 18 Unemployment compensation . . . . . . . . . . . . . . . . . 19 Reserved . . . . . . . . . . . . . . . . . . . . . . . . 20b 21 Other income. List type and amount ▶ 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 . . 22 Educator expenses . . . . . . . . . . . . 23 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . 24 Health savings account deduction. Attach Form 8889 . 25 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . 26 Deductible part of self-employment tax. Attach Schedule SE 27 Self-employed SEP, SIMPLE, and qualified plans . . 28 Self-employed health insurance deduction . . . . 29 Penalty on early withdrawal of savings . . . . . . 30 Alimony paid b Recipient’s SSN ▶ 31a IRA deduction . . . . . . . . . . . . . . 32 Student loan interest deduction . . . . . . . . 33 Reserved . . . . . . . . . . . . . . . 34 Reserved . . . . . . . . . . . . . . . 35 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . 36 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2018 SCHEDULE B Department of the Treasury Internal Revenue Service (99) ▶ Go 1 Interest 2018 to www.irs.gov/ScheduleB for instructions and the latest information. ▶ Attach to Form 1040. Attachment Sequence No. 08 Your social security number Name(s) shown on return Part I OMB No. 1545-0074 Interest and Ordinary Dividends (Form 1040) Amount List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer’s social security number and address ▶ (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. Part II 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 . . . . . . . . . . . . . . . . . . . . . . Subtract line 3 from line 2. Enter the result here and on Form 1040, line 2b . . ▶ 4 Note: If line 4 is over $1,500, you must complete Part III. List name of payer ▶ 5 2 3 4 Amount 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. Part III Foreign Accounts and Trusts (See instructions.) 5 Add the amounts on line 5. Enter the total here and on Form 1040, line 3b . . ▶ 6 6 Note: If line 6 is over $1,500, you must complete 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. 7a Yes No 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 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 account is located ▶ 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 . . . . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040) 2018 2018 Form 1040—Line 11a Qualified Dividends and Capital Gain Tax Worksheet—Line 11a Keep for Your Records Before you begin: 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. See the earlier instructions for line 11a to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1040 through line 10. If you don’t have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Schedule 1. Enter the amount from Form 1040, line 10. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . 1. Enter the amount from Form 1040, line 3a* . . . . . . . . . 2. Are you filing Schedule D?* Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss, enter -0-. 3. No. Enter the amount from Schedule 1, line 13. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . 5. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . 6. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . 7. Enter: $38,600 if single or married filing separately, $77,200 if married filing jointly or qualifying widow(er), . . . . . . . . . . . . 8. $51,700 if head of household. Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . 11. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. Enter: $425,800 if single, $239,500 if married filing separately, . . . . . . . . . . . . 15. $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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. Add lines 7 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 18. Enter the smaller of line 14 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. Multiply line 19 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. Add lines 11 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. Subtract line 21 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. Multiply line 22 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24. Add lines 20, 23, and 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26. Tax on all taxable income. Enter the smaller of line 25 or 26. Also include this amount on the entry space on Form 1040, line 11a. If you are filing Form 2555 or 2555-EZ, don’t enter this amount on the entry space on Form 1040, line 11a. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27. * If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. Need more information or forms? Visit IRS.gov. -40-
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Explanation & Answer

Attached.

Qualified Dividends and Capital Gain Tax Worksheet (2018)
• See Form 1040 instructions for line 11a to see if you can use this worksheet to figure your tax.
• Before completing this worksheet, complete Form 1040 through line 10.
• If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Schedule 1 (Form 1040).
1) Enter the amount from Form 1040, line 10. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned
income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1)
2) Enter the amount from Form 1040, line 3a*........................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2)
3) Are you filing Schedule D?*
Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-.
No. Enter the amount from Schedule 1 (Form 1040), line 13.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3)
4) Add lines 2 and 3.. . . . . . .......................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4)
5) If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form.
Otherwise, enter -0-. .......................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5)
6) Subtract line 5 from line 4. If zero or less, enter -0-. . ........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6)
7) Subtract line 6 from line 1. If zero or less, enter -0-. . ........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7)
8) 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.......................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8)

9) Enter the smaller of line 1 or line 8.................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9)
10) Enter the smaller of line 7 or line 9.................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10)
11) Subtract line 10 from line 9. This amount is taxed at 0%. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11)
12) Enter the smaller of line 1 or line 6.................................... . . . . . . . ....


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