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Prepare a 2018 individual in return using the following fact pattern. Compute uel lax payable or relimd due for Alice and Bruce Byrd for 2013. Alice...

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Prepare a 2018 individual in return using the following fact pattern. Compute uel lax payable or relimd
due for Alice and Bruce Byrd for 2013. Alice J. and Bmce M. Byrd are married taxpayers who le ujoint :etum. Their social enmity numbers
are 12345-6789 and l 11-11-1111l respectively. Alice's birthday is September 21,1968 andBruce’s is
June 27, 1962 They live a] 413 Revere Avenue, Newton, NY 101 in“. Alice is the o‘l’fine manager for
Ames Dental Clinic, 433 Broad Street. New“, NY 10187(em.plowidentificalion number 98-
7654321). Bruce is the manager ofa Super Burgers inst-moo outlet owned and operated by Plymoullt
Corporation. 124‘? Central Avenue, Hnuppsuge. NY ll’iSRennployVe-ridmlfication number 11-1111111). He isaleo ”elf-employedmmeymdlms nparttimepn'acfice.
The following information is shown on their Wage and m Smemem (Form Well) for 2018. ——__—.—— Line Description Alice Bruce 1. Wages, tips and other compensation $52,600 $61,500
2. Federal inmate): willilleid 4,130 5,990
3. Social Security wages 52,600 61.50:}
4. Social Security tax withheld 3,261 3.813
5. Medium wages and tips 52.600 61,500
6, Medicare tax willflleld 763 892
15. State NY NY
16. Slate wages, lips, one. 52.600 61,500
IT. Slate illoume tax Withheld 2.230 2,990 The following htfonnction is meree‘s Law practice: Income $60,000
Ulililies... $3,000
nmmzooa
Supplies... $5,000
Salaries $10,000
Disbusanems... $3,000 The Byrds supper! their two children, Cynthia [born January 15, 2006, Social Security number 123-45-
6788) and John (hum February '1'. 2008, Social Security number 123415-6786)“ Duringflo l8. tile Byrd: fumiehecl 60% offlie 00ml support od'Bance’e widower lather, Sam Byrd [born
March a, 1934, Social Security number [2345-6787). Sam lived alone and covered the rest ofhis suppon
with his social security benefits, Sam died in November and Bruce, the beneficiary ofapoiicy on Sam’s
liile, received life insurance proceeds of$600,000 on December 28". The Bynis had the following expenses relating to their personal residence duringzms: Property taxes $10,720
Qualified imam-2t on home mortgage 9.130
Repairs to roof 4380
Utilities 3,8[0
Fire and lllefl insurance 2,290 The following facts relane in medical wipe-new for 20l8: Medics] insurance premiums $4,381]
Doctor bill for Sam incurred in 201? and not paid until 2013 1160
Operaiiorl for Sam Lalo
Prescription medicines for Sam 860
Hospital expenses for Sam 2,850
Reimbursement from insurance company. neceived in 2016 3,000 The medical expenses for Sam represent most ofihe 60% Bruce contrihuhed toward his father’s support They also engaged in a few slack transactions. They sold 100 shares omen Company Stock for
$10,000 onFebmnry 15, 2018. Their cost basis is $2,000. They had purchased the stock on March IS,
2009. They sold 50 sham: omege Company Stock For $8,000 on March 3, 20l8. They had
purchased Ihe shock on December20, 101? for $12,000. Otherwlmnt inilormatioo follows: - When they filed their 20]? 31sec return in2018. theByrds paid additional stile imam taxes of
$950. ' Duringzols, Alice and Bruce amended 8 dinnerdance spumcdhy lbe Antes Police Disability
Association (a qualified charitable organization). The Byrds paid $100 for the tickets The cost
ofcmnpnrable aneminment would normally be $160. 0 The Byrds omnilmhed $4,8001o Antes Pieehylerian Church and gave used clofllingcostof
$1,100 and fair market value offlSfl) inure Salvation Army. All donations are mpponedby
receipts and am in very good condition. 0 In 2013, the Byrds received interest income of $2,695. which was reported on a Farm 1099-11“
horn Second National Bank. i Bruce paid $320 for an annual subscription to tlIeJorrmal affranchire Miriam. Instructions: Prepareamli Form 1040.5]! corresponding schedule: are required, The return may hepmepared
withalytuooflwmsslo-gnitiswmntdtmnsthetyped.

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