Jacob Weaver is a contractor operating as a sole proprietorship(EIN 12-3456789).
2018 Gross income: $243,322.25.
Business expenses: Fuel for equipment $64,080.00
Repairsand maintenance $17,342.00
Lubricants for Equipment $9,670.00
Insurance $6,500.00
Wages $6,300.00
Vehicles $1,768.00
Legal and Professional Expenses $1,750.00
Taxes and Licenses $1,412.00
Advertising $300.00
Clients owe him a total of $53,000, for work completed in2018.
2018 estimated tax payments were $25,000.
He is using a bedroom in his house as a home office. (Squarefootage of home 5,600 Office 240 sq. ft.)
He has one half-time employee, Martin, who had been unemployedsince returning
from Afghanistan, and is disabled.
Martin worked for Jacob for 20 hours a week, for 41 weeks of2018.
He earned $10,500.
Jacob had to spend $7,350 for disabled access equipment forMartin.
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Scenario
Jacob and Taylor Weaver, ages 45 and 42 respectively, aremarried and are filing jointly in
2018.
They have three children, Ashley, age 9; Patrick, age 6; andJohn, age 18.
Social Security numbers are: Jacob, 222-33-4444; Taylor,555-66-7777; Ashley, 888-99-1234; Patrick, 789-56-4321; John,123-45-6789.
Taylor works part-time as a paralegal.
She earned $26,000 in 2018.
Taxes withheld: $4,200 withheld.
Estimated tax payments: $25,000.
$350 paid with their 2017 state tax return.
Jacob and Taylor bought their first house in 2018.
Home mortgage interest: $7,246.
Property tax: $2,230.
Federal income withholding: $2,350.
Charities: $4,500.
$435 to rent a moving truck.
$8,000 to put new siding on the house.
$11,600 for child care expenses ($5,800 for each child).
It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie,IN 47305 (EIN 98-7654321).
Taylor is a part-time student at Ball State University inMuncie.
She received a 1098-T indicating tuition and fees for 2018 inthe amount of $6,011.
Health insurance for the family, through Taylor's job, cost$6000 for all 12 months of 2018.
They paid deductibles and co-payments of $550.
QUESTIONS
Please can you show all the exclusions to Taxable incomeand AGI only on a Form 1040 using above information. I have alreadycompleted the other parts of the form, I can do the rest additionsand subtractions. Thank you