Question

John R. Lane (SSN 111-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, provided 60% of his cousin's support. The cousin lives in Arizona. He wants to take advantage of the presidential election campaign check- off. John was employed as an accountant before he retired during the year. Other relevant information includes Salary $50,000 Pension (all taxable) 41,000 Taxable interest income 240 Deductible contribution to IRA 5,500 Withholdings 12,100 John's itemized deductions total $11,000. Complete Form 1040 and Schedule 1 for 2018. Assume any estimated tax penalty is zero.

Answer 1

Calculation of federal Tax liability

Particulars	Amount($)
Gross salary	50000
Pension	41000
Interest Income	240
Income before exemption and deduction	91240	50000+41000+240
less IRA deduction	-5500	maximum allowed for 2018 is upto 5500
less standard  deduction	- 13300	itemized deduction is $ 11000 whereas standard deduction $13300 so its beneficial to take standard deduction as he is senior citizen
Taxable income	72440
Taxes on Taxable income
Tax liability on base bracket	4454	10% of 9525=953 12% of (38700-9525)=3501
Tax liability on excess over base@22%	7422.8	$(72440-38700)*22%
Tax on Taxable income	11876.8
less withholding Tax	-12100
Refund	$ 223.2	11876.8-12100
Lesspresidentail check	$3	as he has opted for presdential election campain
Total Refund	$ 220.2

cousin will not be come in defination of dependent because he is not living with john R ,and to get credit of other dependent of $500 john r cousin should live with him.

so No credit on cousin will be given and john R will get refund of  $ 220.2  for year 2018