Carl Conch and Mary Duval are married and file a joint return. Carl works for the Key Lime Pie Company and Mary is a homemaker after losing her job in 2017. Carl's birthdate is June 14, 1973 and Mary's is October 2, 1973. Carl received a W-2 from his employer. Carl and Mary received Form 1099-INT from the Coral Reef Bank and Form 1099-DIV from Southwest Corporation.
Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pursuant to their 2015 divorce decree, Mary pays Tom $500 per month in child support. All payments were made on time in 2018.
In June of 2018, Mary's father gave her a cash gift of $75,000. Mary also received unemployment compensation as shown on the Form 1099-G.
Mary won a $750 prize in a women's club raffle in 2018. No income tax was withheld from the prize.
The Key Lime Pie Company provides Carl with a company car to drive while he is working. The Company spent $6,475 to maintain this vehicle during 2018. Carl never uses the car for personal purposes. The Key Lime Pie Company also provides a cafeteria for all employees on the factory premises. Other restaurants exist in the area and so Carl is not required to eat in the cafeteria, but he typically does. The value of Carl's meals is $650 in 2018.
Required:
Complete Carl and Mary's Form 1040 and Schedule 1 for 2018. The taxpayers had health care coverage the entire year. They both want to make a contribution to the presidential election campaign. Make any other realistic assumptions about any missing data.
1 Wages, tips, other compensation
67,700.00*
2 Federal income tax withheld
6,700.00
c Employer's name, address, and ZIP code
Key Lime Pie Company
223 Key Deer Blvd.
Big Pine Key, FL 33043
3 Social security wages
67,700.00
4 Social security tax withheld
4,197,40
5 Medicare wages and tips
67,700.00
6 Medicare tax withheld
981.65
12a See instructions for box 12
C
o
d
e C
240.00
14 Other
Parking $1,680.00
1 Interest income
$355.24
1aTotal ordinary dividends
$ 210.00
1 Unemployment compensation
$ 2,800.00
4 Federal income tax withheld
$ 160.00