James and Esther Johnson live at 45678 S.W. 112th Street, Homestead, FL 33033. James, who is 67 years old (date of birth 12/14/1951), is retired receiving social security benefits and Esther, who is 66 years old (date of birth 06/11/1952), is also retired but working on a part-time basis. Their social security numbers are 412-34-5670 and 412-34-5671, respectively. The Johnsons had qualifying health care coverage at all times during the tax year. Annual social security income for Jim is $22,000 (SSA-1099, box 5) and for Esther is $10,800 (SSA-1099, box 5). Interest received by them from Central Bank is $2,545 (1099-INT, box 1). No income tax withholding was made. Esther is working part-time as an interior decorator as an employee of Decorating House, a corporation. Her form W-2 shows the following information:

Wages	=	$	15,000.00
Federal W/H	=	$	1,500.00
Social security wages	=	$	15,000.00
Social security W/H	=	$	930.00
Medicare wages	=	$	15,000.00
Medicare W/H	=	$	217.50

Their itemized deductions are as follows:

1. Mortgage interest on their main home, $10,500.
2. Real estate taxes, $5,600.
3. Personal property taxes, $185.
4. Doctors' expenses unreimbursed by insurance, $7,400.
5. Medical insurance premiums for the year, $2,400.
6. Prescribed medicine, $1,995.
7. Vitamins, $300.
8. Total cash contributions to their church, $675. The contributions were made over the course of the year and no individual contribution was greater than $250.
9. Tax preparation fees for their 2017 return, $325, paid in 2018.
10. Lottery tickets bought by Esther during the year, $750. Winnings received, $940 (W-2G, box 1). Income tax withholding on winnings, $35 (W-2G, box 4).

Because the Johnsons live in Florida, where there is no state income tax, they will deduct the estimation of the general sales tax related to the area in which they live. The most efficient way to do this is by using the Sales Tax Calculator on the IRS website at https://www.irs.gov/Individuals/Sales-Tax-Deduction-Calculator. A key point to remember in using the calculator is that income for this calculation also includes the nontaxable portion of social security benefits. Prepare their individual income tax return using the appropriate forms. They do not want to contribute to the presidential election campaign and do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions. They had qualifying health coverage at all times during the year. (List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount.)

Schedule A of Form 1040.

SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040) 2018 Department of the Treasury Information about Schedule A and its separate instructions is at www.irs.gov/schedulea. Internal Revenue Service (99) Attach to Form 1040. Attachment Sequence No. 07 Name(s) shown on Form 1040 Your social security number Medical and Dental Expenses Caution. Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 1 2 Enter amount from Form 1040, line 7 2 3 Multiply line 2 by 7.5% (0.075) 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 4 Taxes You Paid 5 State and local taxes a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box checkbox unchecked1 of 1 5a b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c d Add lines 5a through 5c 5d e Enter the smaller of line 5d and $10,000 ($5,000 if married filing separately) 5e 6 Other taxes. List type and amount 6 7 Add lines 5e and 6 7 Interest You Paid 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and Caution: check this box checkbox unchecked1 of 1 Your mortgage interest deduction may be limited (see instructions). a Home mortgage interest and points reported to you on Form 1098 8a b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8b c Points not reported to you on Form 1098. See instructions for special rules 8c d Reserved 8d e Add lines 8a through 8c 8e 9 Investment interest. Attach Form 4952 if required. (see instructions) 9 10 Add lines 8e and 9 10 Gifts to Charity 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 11 12 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 If you made a gift and got a benefit for it, see instructions. 12 13 Carryover from prior year 13 14 Add lines 11 through 13 14 Casualty and Theft Losses 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 Other Itemized Deductions 16 Otherfrom list in instructions. List type and amount 16 Total Itemized Deductions 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040, line 8 17 18 If you elect to itemize deductions even though they are less than your standard deduction, check here checkbox unchecked1 of 1