Jacob Weaver is a contractor operating as a sole proprietorship (EIN 12-3456789). 2018 Gross income: $243,322.25. Business expenses:...

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Accounting

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.

--------------------------------

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

Answer & Explanation Solved by verified expert
4.0 Ratings (481 Votes)
Jacob Weaver SE tax and SE deduction Figures for 2018 in dollars Gross income 24332225 27847225 Due from clients 53000 2433223 Martins wages 10500 Business expenses Martins disabled eqpt 7350 Fuel for equipment 64080 Total 17850 Repairs Maintenance 17342 Lubricants for equipment 9670 Insurance 6500 Wages 6300 Vehicles 1768 Legal and Professional Expenses 1750 Taxes and Licences 1412 Advertising 300 Total expenses 109122 Net income    See Answer
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