Tax Return-Individual Number Four (after Chapter 8) Instructions:
Please complete the 2018 federal income tax return for Magdalena Schmitz. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps.
Magdalena Schmitz has undergone some major changes in her life recently. In 2016, at the age of 46, her husband, Roger, passed away. Magdalena has not remarried as of the end of 2018. Magdalena currently lives in Bedford, Pennsylvania. She was living in Pittsburgh when her husband passed away but she moved back to her childhood home so she could get help from her family raising her children. Magdalena was employed in Pittsburgh early in the year but left that job and relocated 100 miles away to pursue a new life and start her new job. Magdalena has three children (ages as of the end of the year): Alyssa (23), Tyler (16), and Connor (11). Magdalena would like to determine her federal income tax under the filing status that is most advantageous for her.
Magdalena reported the following information:
Magdalena’s social security number is 294-83-2845
Alyssa’s social security number is 824-84-8456
Tyler’s social security number is 824-34-9584
Connor’s social security number is 824-56-2984
Magdalena’s mailing address is
Alyssa is unmarried and a full-time graduate student at Pennsylvania State University (PSU) (EIN 33-9876543). PSU’s address is 1250 Happy Valley, State College, PA 16801. She received her bachelor’s degree the year her father passed away. This year represents her fifth year of full-time higher education schooling. Alyssa works part-time in State College to help with some of her living expenses. Alyssa earned $2,300 in gross income during the year and had her income tax return prepared on campus by Volunteer Income Tax Assistance (VITA) volunteers. Magdalena provided support for Alyssa including paying for rent, books, tuition, food, clothes, medicine, and other support items. In total, Magdalena provided $12,700 of support for the year. PSU provided Alyssa with a Form 1098-T at year end.
Alyssa’s higher education expenses for her university studies were as follows:
Tuition $6,500
Books $2,000
In order to for Magdalena to maintain a full-time job, she sends Connor to a day care program after school five days a week. During the year, Magdalena paid the day care operator $4,250 for Connor’s care.
The day care details are as follows:
Horizon Day Care
452 S. Patriot Road
Bedford, PA 15522
EIN: 43-6598324
Magdalena’s W-2s for the year reported the following:
Employer
Gross Wages
Federal Income Tax Withholding
State Income Tax Withholding
Juniata Development Corporation
$48,435
$900
$700
Pittsburgh Real Estate
$2,450
$200
$125