Question

what number will go on their tax return for number 16?

Requirements Prepare an income tax return (with all appropriate forms and schedules) for the Danes for 2018 following these guidelines: Make necessary assumptions for information not given in the problem but needed to complete the return. The taxpayers are preparing their own return (ie, no preparer is involved. The taxpayers have substantiation (e.g, records, receipts) to support all transactions for the year. If any refund is due, the Danes want a refund check sent to them by mail. The Danes had itemized deductions from AGI for 2017 of $16,700, of which $1,500 was for state and local income taxes. • The Danes do not want to contribute to the Presidential Election Campaign Fund.

Answer 1

Answer

• Here i have attached image of (i)1040 individual income tax return, (ii)Schedule 1 & (iii)Schedule C
• I have assumed business income as per prior year's AGI  

(i) 1040 return

49 E T IA Department of the Treasury --Internal Revenue Service 99) U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Filing status: Single Married fling jointly Maried filing separately Head of household Qualifying widower) Your first name and initial Last name Your social security number JASON R. DANE 1 1 111 111 111 Your standard deduction: Someone can claim you as a dependent You were bom before January 2, 1954 You are blind If joint return, spouse's first name and initial Last name Spouse's social security number JENNI L. DANE 2 2 212 212 2 2 2 Spouse standard deduction Someone can claim your spouse as a dependent Spouse was born before January 2, 1964 Full-year health care coverage Spouse is blind Spouse itemizes on a separate retum or you were dual-status alien or exempt (see inst.) Home address number and street). If you have a P.O. bax, see instructions Apt. no. Presidential Election Campaign 13071 STERLING DRIVE (see inst.) You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. If more than four dependents, see inst, and here - MARQUETTE, MI 49866 Dependents (see instructions): (2) Social security number (3) Relationship to you (4 if qualifies for see inst): (1) First name Last name Child tax credit Credit for other dependents ETHAN DANE 3 3 3 3 3 3 3 3 3 SON ISAAC DANE 4 4 414 414 44.4 SON M O Sign Under penaltes of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true. correct, and complete Deckaration of preparer fother than taxpayer) is based on all information of which preparer has any knowledge Here Your signature Date Your occupation If the RS sent you an Identity Protection Joint return? PIN enter it See instructions SELF EMPLOYED here see inst Keep a copy for Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the RS sent you an Identity Protection your records. PIN, enter it here see inst.) Proparer's name Preparer's slanature Fimm's EIN Check if: Paid 3rd Party Designee Preparer Use Only Firm's name Phone no. Sef-employed Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notico, see separate instructions. Cat. No 11320B Form 1040 2018

Form 1040 2018) Page 2 2b 3b 4b 5b 6 16600 15427 27858 10 1 Wages, salaries, tips, etc. Allach Formis) W-2 2a Tax-exempt interest. . . 2a b Taxable interest . . . Attach Form) W 2. Nise attach 3a Qualified dividends. . . 3a b Ordinary dividends . Formis 1-2G and 1069 Rif tax was 4a Ras, pensions, and annuities. 4a b Taxable amount . . withheld 5a Social security benefits . 5a b Taxable amount . . . Total income. Add ines 1 through 5. Add any amount from Schedule 1, line 22 16600 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, Standard subtract Schedule 1, line 36, from line 6 - . . Deduction for 8 Standard deduction or itemized deductions (from Schedule A) . . • Single or married filing separately. Qualified business income deduction (see instructions) . . . . . . . . . . . . . $12.000 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -- . . . . . . . • Varred filing jointly or Qualifying 11 a Tax (see inst.) (check if any from: 1 Fams) 8914 2 Form 4972 30 widower. $24.000 b Add any amount from Schedule 2 and check here . . . . . . . . • Head of 12 a Chid tax credit/credit for other dependents b Add any amount from Schedule 3 and check here household $18,000 Subtract line 12 from line 11. If zero or less, entero . . . . . . . . . . . . . • If you checked 114 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . any box under Standard Total tax. Add lines 13 and 14 : . . . . . . . . . . . . daduction, see instructions. Federal income tax withheld from Forms W-2 and 1099 . . Refundable credits: a EIC (se inst) 5716 b Sch. 1812 1939 c Form 3863 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 overpald . 20a Amount of line 19 you want refunded to you. If Form 3883 is attached, check here . . . U Direct depost? Routing number D c Type: Checking Savings See instructions. ▸d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax, . 21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions. . . 23 Estimated tax penalty (see instructions) . . . . . . . . 23 Go to www.irs.gov/Form 1040 for instructions and the latest information 2345 2345 17 17 18 7655 7655 5310 5310 19 20a | 22 Form 1040 2018)

(ii) Schedule 1

(iii) Schedule C

OMB No. 1545-0074 2018 Attachment Sequence No. 01 Your social security number 111-11-1111 1-9b 10 16600 13 15b 16b 17 18 19 20b SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040) Attach to Form 1040. Department of the Treasury Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 JASON R. & JENNI L. DANE Additional 1-9b Reserved 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . Income 11 Alimony received . . . . . . . . . . . . . . . . . . . . . 12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . 13 Capital gain or loss). Attach Schedule D if required. If not required, check here 14 Other gains or losses). Attach Form 4797. ............. 15a Reserved . . . . . . . . . . . . . . . . . . . . . . . . 16a Reserved . . . . . . . . . . . . . . . 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 19 Unemployment compensation . . . . . . . . . . . . . . . . . 20a Reserved . . . . . . . . . . . . . . . . . . . . . 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23... Adjustments 23 Educator expenses ............ 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . 24 Health savings account deduction. Attach Form 8889 . 25 26 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . 26 27 Deductible part of self-employment tax. Attach Schedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans .. 29 Self-employed health insurance deduction .. .. 30 Penalty on early withdrawal of savings. . . . . . 30 31a Alimony paid b Recipient's SSN 31a 32 IRA deduction . . . . . . . . . . . . . . 32 33 Student loan interest deduction .... 34 Reserved . . . . . . . . . . . . . 35 Reserved . . . . . . . . . . . . . 35 36 Add lines 23 through 35 .. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F 22 16600 25 28 29 33 34 36 1173 Schedule 1 (Form 1040) 2018

2019 H SCHEDULEC Profit or Loss From Business OMB No. 1545-0074 (Form 1040 or 1040-SR) (Sole Proprietorship) Go to www.irs.gov/Schedule for instructions and the latest information. Department of the Treasury Attachment Internal Revenue Service (99) Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) JASON R. DANE 111-11-1111 A Principal business or profession, including product or service (see instructions) B Enter code from instructions INSURANCE CLAIMS ADJUSTER ► 5 2 4 29 0 C Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) JASON R DANE Business address (including suite or room no.) 13071 STERLING DRIVE City, town or post office, state, and ZIP code MARQUETTE, MI 49866 F Accounting method: (1) Cash (2) Accrual (3) Other (specify Did you "materially participate in the operation of this business during 2019? If "No," see instructions for limit on losses Yes No I f you started or acquired this business during 2019, check here. Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions). . . . ... Yes No If "Yes" did you or will you file required Forms 1099? . . . . . . . . . Yes No Part I Income Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked. . . . . . . . . U 18100 Returns and allowances . . . . . . . . . . . . . . . . . . . . . . Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . 18100 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . 5 Gross profit. Subtract line 4 from line 3 . . . . 18100 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . 7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . 18100 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising . . . 8 18 Office expense (see instructions) 18 Car and truck expenses (see 19 Pension and profit-sharing plans. | 19 instructions). . . . . 20 Rent or lease (see Instructions): Commissions and fees. a Vehicles, machinery, and equipment 20a Contract labor (see instructions) b Other business property . . . 20b Depletion . . . . 21 Repairs and maintenance. .. Depreciation and section 179 22 Supplies (not included in Part III). expense deduction (not 23 Taxes and licenses. included in Part III) (see . . 1500 . instructions). . . 13 24 Travel and meals: Employee benefit programs a Travel . . . . . . . . . (other than on line 19). . 14 b Deductible meals (see Insurance (other than health) 15 instructions) . . . . . . 16 Interest (see instructions): 25 Utilities . . . . . . . . 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits). 26 b Other . . . . . . 16h 27a Other expenses (from line 48) . 27a 17 Legal and professional services 17 b Reserved for future use. . . 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . 28 1500 Tentative profit or loss). Subtract line 28 from line 7. . . . . . . . . . . . . . . . . 29 16600 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30.... . . 31 Net profit or loss). Subtract line 30 from line 29. • If a profit, enter on both Schedule 1 Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and 16600 trusts, enter on Form 1041, line 3. • If a loss, you must go to line 32 32 If you have a loss, check the box that describes your investment in this activity (see instructions) . If you checked 32a, enter the loss on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 32a All investment is at risk. 32b Some investment is not 31 instructions). Estates and trusts, enter on Form 1041, line 3. at risk. • If you checked 32b, you must attach Form 6198. Your loss may be limited. For Paperwork Reduction Act Notice, see the separate Instructions. Cat. No. 11334P Schedule C (Form 1040 or 1040-SR) 2019 11 12 13 14 24b 29 130