Question

Please fill in this tax return.

Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m an open book! I’ll tell you whatever I think you need to know.

     I had to move this year after getting my job at Roca Cola. I moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move my stuff at a cost of $2,300, and I drove in my car. I got a hotel room along the way that cost $65 (I love Super 8!).

     Can you believe I’m still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year.

     Since Roca Coca (my employer) never started a retirement plan, I decided I should probably start saving for my golden years. I contributed $3,000 to what the bank referred to as a regular IRA (or was it an REM?). Oh yeah. I also did a little investing this year. I bought a limited partnership interest in Duds Ltd. for $10,000. I thought it was going to be a real winner, but this year they took a bath. My portion of the loss was $8,000. Well, at least I did not actually do any work for Duds, and I get the tax deduction—right?

     That should be all the information you need right now.

Form 1040 (2018) Page 2 172,900 Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 3a Qualified dividends 4a IRAs, pensions, and annuities 5a Social security benefits 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line b Taxable interest b Ordinary dividends 3,000 b Taxable amount b Taxable amount Standard deduction for- 22 172,900 169,900 12,200 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6, otherwise, subtract Schedule 1, . Single or Married filing line 36, from line 6 separately, $12,000 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- • Married filing jointly or Qualifying widow(er), 11 a Tax (see inst.) (check if any from: D 1. Form(s) 8814 02. Form 4972 $24,000 3. b Add any amount from Schedule 2 and check here Head of household, 12 a Child tax credit/credit for other dependents $18,000 b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter-O- 14 Other taxes. Attach Schedule 4 • If you checked any box 15 Total tax. Add lines 13 and 14 under Standard 16 Federal income tax withheld from Forms W-2 and 1099 deduction, see instructions. 17 Refundable credits: a EIC (see inst.) b Sch. 8812 C Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here .. Dicert.denosit2..See..........b Routing number...... ... c Type: Checking...... Savings.

Answer 1

There are 2 tests for claiming moving expenses :
time test :
The timing of your move must be closely related to the start of your new employment in order to qualify for the tax deduction. To meet this standard, you’ll have to start your new job and work full-time for at least 39 weeks within the first 12 months after your move.
distance test :
Another requirement involves the distance between your new workplace and your old home. To claim your moving costs, your new place of employment must be at least 50 miles farther away from your old home than your old place of employment.

Here, both the conditions are satisfied hence moving expense of 2,300$ can be claimed fully ...

likewise lodging expense of 65$ also can be claimed related to the moving process

as the Modified Adjusted Gross Income is more than 85,000$ entire amount of interest that is 900$ is not allowed as deduction

With no retirement plan at work, you may deduct your contribution to IRA regardless of your income so the amount of 3,000 $ can be deducted fully...

As the information regarding business information was not given clearly it is assumed that entire income is from salary so that no business loss would be allowed as deduction