Determine all items that will be included and excluded from gross income on Form 1040 based on the TCJA of 2018. List all included and excluded items in column A. In column B, explain why the item is either included or excluded.
Determine all items that will be included and excluded from gross income on Form 1040 based on the TCJA of 2018. List all included and excluded items in column A. In column B, explain why the item is either included or excluded.
Form 1040, Schedule C, Schedule D, Schedule E, Form 8949
Jenny Walters is a marketing assistant and earned $38,000 in 2018. She is 42 years old and has been divorced for five years. Jenny will claim head of household for 2018. She has a daughter, Julia, who is 20 years old. Julia is a full-time student. Here are some more tax facts:
Jenny's SSN is 123-34-4567 and Julia's is 654-32-1234.
Jenny's address is 100 N. Main St., Atlanta, GA 30301.
Jenny receives $1,200 per month in alimony from her ex-husband.
Jenny owns a rental property with the following financial data:
Rental Revenue - $50,000
Expenses:
Insurance - $5,000
Repairs - $10,500
Jenny has interest income from corporate bonds of $2,200 and interest from municipal bonds of $1,000.
Jenny also paid the following expenses: State income taxes of $5,800, charitable contributions of $12,500, and medical expenses of $5,795 for insurance premiums; $1,100 for medical care expenses; $350 for prescription medicine; $100 for nonprescription medicine; and $200 for new contact lenses for Julia.
Jenny received disability insurance payments of $1,200.
Jenny runs a small business from her home giving piano lessons to kids on weekends. She had the following transactions from it: total revenue $10,000; office supplies $500; teaching materials and supplies $1050; concerts and field shows $1500; repairs and maintenance of pianos $950; wages to a teaching assistant $1000; payroll taxes $765; business insurance $420; occupational taxes and license $160.
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