MARCUS HILTON CPA. Relevant 2018 Tax Changes And Income Tax Questionnaire

Transcription

1 MARCUS HILTON CPA 4226A WHITE PLAINS ROAD 2 ND Floor BRONX, NEW YORK Tel (718) Fax (718) info@marcushiltoncpa.com Web: Relevant 2018 Tax Changes And Income Tax Questionnaire 1

2 MARCUS HILTON CERTIFIED PUBLIC ACCOUNTANT 4226A WHITE PLAINS ROAD 2 ND Floor BRONX, NEW YORK Tel (718) Fax (718) info@marcushiltoncpa.com Web: December 13, 2018 Dear Taxpayer: Welcome to another tax season. I want to thank you for your loyalty and patronage during the past years. For those of you who are first time clients we want to extend a special welcome to you and we do hope that you are satisfied with our tax preparation service. We are always trying to improve our service and we are pleased with the many suggestions that we received from several of you. Please check to see if the name you are using matches your Social Security Card. Help us make this tax preparation season error free. Please note that our main office is at the same address: 4226A White Plains Road, 2 nd Floor Bronx, New York (corner of 234 th Street) Other Office Locations: 470 Nepperhan Avenue Yonkers NY East Gun Hill Road Suite #1C Bronx NY

3 Please review the 2018 relevant tax changes and questionnaire. Kindly take your time and fill in as much information as you can. However, should you have a problem doing so, do not get discouraged, we will do the rest for you. Our hours of operations are as follows: Main Office Yonkers Gun Hill Road Mondays Fridays 8am to 8pm 9am to 6pm 9am to 7pm Saturdays 8 am to 6pm 8am to 4pm 8am to 4pm Sundays CLOSED CLOSED By Appointment Only All tax returns prepared by our office for the year 2018 must be e-filed. You can also e-file 2017 and Due Date of Individual Tax Return The due date for filing 2018 return is Tuesday, April 15, Hope to see you soon. Cordially, 3

4 Table of Contents Relevant 2018 Tax changes Page # Unemployment Compensation. 5 AMT Exemption Standard Deduction Increased 5 Personal and Dependency Personal Energy Credit 5-6 Standard Mileage Rates for Earned Income Credit.. 6 Self-Employment. 7 Individual Health Insurance Requirement Child Tax Credit 8 Home Mortgage Interest 8-9 Personal Casualty & Theft Loss Income Tax Questionnaire Page # Dependents Proof of Identity Unemployment Insurance. 11 Disability Payments.. 12 Interest and Dividend Income.. 12 Adjustment to Gross Income Self Employed Plans (SEP).. 13 Educator Expense. 13 Disability Pay Exclusion.. 13 Alimony Itemized Deduction.. 14 Self Employment Health Insurance. 14 Taxes Paid in Interest Expense for Charitable Contributions (Cash) Made and Paid in Charitable Contributions (Non-Cash) Made in Casualty Losses.. 17 Miscellaneous Expenses. 17 Credits Schedule C Schedule E - Rental Income Notes 28 4

5 RELEVANT 2018 TAX CHANGES UNEMPLOYMENT COMPENSATION Unemployment Compensation is fully taxable. This amount applies to both you and your spouse if you are married. AMT EXEMPTION FOR THE YEAR 2018 For 2018 the Alternative minimum tax (AMT) exemption is set at $109,400 for married taxpayers filing a joint return and on a return filed by a surviving spouse (qualifying widow(er)), $70,340 on a return with the filing status as single or head of household, and $54,700 for a married taxpayer filing a separate return. The exemption begins to phase out at $500,000 for single and head of household and $1,000,000 for couples filing jointly. STANDARD DEDUCTION INCREASED Married filing jointly $24,000 Head of household $18,000 Single $12,000 Qualifying widower $24,000 Married filing separately $12,000 PERSONAL AND DEPENDENCY EXEMPTION Personal and dependency exemption are no longer available for this year tax filing season. PERSONAL ENERGY CREDIT Energy credit is a non-refundable credit, that means it reduces your taxes dollar for dollar. Any excess over your tax liability is carried forward to The popular residential energy tax credit equals 10 percent of cost up to a maximum of $500 or a specific amount from $50-$300. Examples: stoves, roofs, insulation, water heaters, windows, furnaces, central air conditioners, HAC air circulations fans, biomass stoves, doors and skylights. There is a 30 percent credit on the items mentioned below. 5

6 Examples 1. Geothermal heat pumps 2. Solar water heater 3. Small wind turbines Purchases made in 2018: not eligible The Bipartisan Budget Act of 2018 reinstated this tax credit for purchase made in Any qualified equipment installed prior to January 1, 2018 is eligible for this credit. Equipment installed on or after January 1, 2018 is not eligible for this credit. STANDARD MILEAGE RATES FOR 2018 Business use of automobile: 54.5 cents per mile Medical use or Moving: 18 cents per mile Charity use: 14 cents per mile EARNED INCOME CREDIT This credit has increased for the year No children $ 519 One child $ 3,461 Two children $ 5,716 Three or more children $ 6,431 The credit can be claimed if you earned less than $49,194 if you are single and $54,884 if married. Three children or more if you earned less than $49,194 (54,884 if married) Two children if you earn less than $45,802 ($51,492 if married) One child if you earn less than $40,320 ($46,010 if married) No children and you earned less than $15,270 ($20,950 if you are married) Maximum Investment income you can earn and get the credit is $3,500 Qualifying Child definition is as follows: A child must be younger than you unless the child is permanently and totally disabled. A child is not a qualifying child if the child filed a joint tax return unless the return was filed only as a claim for refund. If the parent of a child can claim a child as a qualifying child but no parent claim the child, no one else can claim the child as a qualifying child unless that person s AGI is higher than the highest AGI of any parent of the child. 6

7 SELF-EMPLOYMENT Maximum income subject to social security tax The maximum amount of self-employment income subject to social security has not been increased in It remains at $128,400. MEDICARE TAXES An additional 0.9 percent Medicare tax on wages above $200,000 for individual and $250,000 for married filing jointly remains the same for The 3.8 percent rate applies to investment (Unearned) income with modified adjusted gross income of $200,000 and $250,000 for single and married filing jointly taxpayer. ESTATES AND GIFT TAXES For an estate of any decedent during 2018, the basic exclusion is $11.2 Million - Single and $22.4 Million Married, and the maximum rate is 40%. The annual exclusion for gifts is $15,000. INDIVIDUAL HEALTH INSURANCE REQUIREMENT IS STILL IN EFFECT FOR THIS YEAR The Affordable Care Act mandates that most individuals have minimum essential coverage (Health Insurance). All individuals must maintain minimum essential coverage for themselves and any dependents that are also applicable individuals. Nonexempt individuals who do not maintain required health coverage for themselves and any nonexempt dependents are subject to a shared responsibility penalty. Exempt individuals are not subject to the shared responsibility penalty for any month they qualify for one or more exemptions on any day during the month. Minimum Essentials Coverage Generally, coverage obtained through government-sponsored programs, an eligible employersponsored plan, or purchased through a state insurance marketplace will meet the minimum essential coverage requirement. Form 1095-A, Health Insurance Marketplace Statement, will be issued by the state marketplace for individuals receiving coverage through a state marketplace. Besides listing individuals covered, this form includes the insurance premiums paid, the benchmark premium, and any premium advance. This information is needed to calculate and reconcile the premium tax credit. 7

8 If you are covered by the Affordable Care Act (ACA) (Obama Care), please provide a copy of form 1095A and 8962 where applicable. Failure to do so may give rise to delay in processing your tax return. Also, you must provide proof of insurance coverage by submitting a copy of form 1095B or 1095C with your documents. THE CHILD TAX CREDITS How much is the credit? Maximum $2,000 per child. You must have at least one qualifying child The list of qualifying children includes biological and adopted children, stepchildren, foster children living in your care, siblings, stepsiblings, or a child of any of these individuals. About that Social Security Number The Social Security Number requirement is something of a new development. It used to be that you could claim the Child Tax Credit retroactively in a later year if your child did not have a Social Security Number by the time your tax return was due. That provision has been eliminated as many as 1 million undocumented children. A Credit for Other Dependents Beginning in 2018, you might also be able to claim an additional $500 credit for your non-child dependents. The TCJA calls this a family credit and all the old rules for claiming adult dependents on your tax return still apply. They re largely the same as they are for qualifying child dependents, covering those who don t meet the age requirement. The TCJA eliminates the additional Child Tax Credit sort of. What the new law does is consolidate these two 2017 tax credits the Child Tax Credit and the Additional Child Tax Credit into one. Beginning in 2018, up to $1,400 of the $2,000 Child Tax Credit can be refundable. If any part of your credit is left over after eliminating your tax debt, the IRS will send you a refund of up to $1,400. And that $1,400 can be expected to increase a little in future years because the new tax law indexes it to keep pace with inflation. Remember, the TCJA says the refundable portion of the credit is up to this amount. The credit is equal to 15 percent of your earned income over $2,500. A taxpayer would need earned income of approximately $12,000 a year to qualify for and receive the full $1,400 refund. $12,000 less $2,500 is $9,500, and 15 percent of $9,500 work out to $1,425. At $12,000 in earned income, the taxpayer would forfeit that extra $25 because the refundable portion of the credit caps out at $1,400. HOME MORTGAGE INTEREST DEDUCTIONS 2018 Under the TCJA, starting in 2018, the limit on qualifying acquisition debt is reduced to $750,000 ($375,000 for a married taxpayer filing separately). However, for acquisition debt incurred before December 15, 2017, the higher pre-tcja limit applies. The higher pre-tcja limit also applies 8

9 to debt arising from refinancing pre-december 15, 2017 acquisition debt, to the extent the debt resulting from the refinancing does not exceed the original debt amount. This means you can refinance up to $1 million of pre-december 15, 2017 acquisition debt in the future and not be subject to the reduced limitation. And, importantly, starting in 2018, there is no longer a deduction for interest on home equity debt. This applies regardless of when the home equity debt was incurred. However, there is an exception to this rule, the Tax Cuts and Jobs Act of 2017, enacted Dec 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer s home that secures the loan. Under the new law, for example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. As under prior law, the loan must be secured by the taxpayer s main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements. Mortgage Insurance is still deductible If you put less than 20% down when buying your home, you most likely have to pay private mortgage insurance. Essentially, this allows you to treat your mortgage insurance premiums as interest for tax purposes. Mortgage points is still deductible However, be mindful of the $750,000 mortgage limitation for PERSONAL CASUALTY & THEFT LOSS DEDUCTIONS SEVERELY LIMITED For tax year 2018 through 2025, the personal casualty and theft loss deduction isn t available, except for casualty losses incurred in federally declared disaster. This means a taxpayer who suffers a personal casualty loss from a disaster declared by the President under section 401 of the Robert T Stafford Disaster Relief and Emergency Assistance Act will still be able to claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10% of AGI limitations mentioned above. Also, in the instance where a taxpayer has personal casualty gains, personal casualty losses can still be offset against those gains, even if the losses aren t incurred in a federally declared disaster. The casualty loss deduction helped to lessen the financial impact of casualty and theft losses on individuals. Now that the deduction generally won t be allowed, except for declared disasters, you may want to review your homeowner, flood, and auto insurance policies to determine if you need additional protection. 9

10 MARCUS HILTON CERTIFIED PUBLIC ACCOUNTANT 4226A WHITE PLAINS ROAD 2 ND Floor BRONX, NEW YORK Tel (718) Fax (718) info@marcushiltoncpa.com Web: INCOME TAX QUESTIONNAIRE PERSONAL INFORMATION Last Names: (Taxpayer) (Spouse) First Names:(Taxpayer) (Spouse) Occupation: (Taxpayer) (Spouse) Address: (Street) City and Zip Code: address Telephone Numbers: (Home) (Business) Date of Birth: (Taxpayer) (Spouse) Social Security Numbers: (Taxpayer) (Spouse) 2. Do you wish to have $3.00 of your tax applied to the Presidential Election Campaign Fund? Please indicate yes or no below: You: Yes No Spouse: Yes No 3. Is someone (such as your parents) claiming you on their tax returns? Yes No Check filing status on this return: Single Married Filing Joint Return Head of Household qualifying widow(er) with dependent child (Indicate year spouse died) Married Filing Separately Enter spouse Social Security Number 10

11 Note: Married filing separately in most cases give rise to higher taxes being paid. DEPENDENTS: First and Last Names as Shown on Social Security Card Date of Birth Social Security Number Relationship No. of months in your home Please place an asterisk (*) next to the dependent s name if he or she has education expenses. If dependent has an identity protection PIN furnished by the IRS, please write it down or provide IRS letter with number. PIN: (if applicable) Note: It is mandatory to have a Social Security number for each dependent no matter what age. PROOF OF IDENTITY VERIFICATION: Was taxpayer physically present in your office or was return prepared remotely? In Office Remote Which of the following did the taxpayer provide to confirm identity, address, and/or nationality? Driver s License, state issued ID or passport. Financial or utility account number such as checking account, savings account, loan, credit card, or utility bill which requires a government ID to obtain. Other nongovernmental documentation. ID type ID number ID issuing state ID issue date ID Expiration date Bank Information Bank Name: Name on Account: Address: Routing Number: 11

12 Account Number: Type of Account: Checking Savings For dependents other than your children, the following questions must be answered. A. Did you provide more than half of dependent s support? Yes No. If yes, how much is your support in monetary terms? $. Did your dependent have more than $4,050 in income? Yes No. Enclosed copies of your W-2 and 1099 Forms. W-2 FORMS PENSION AND ANNUITIES Yes No N/A Yes No N/A UNEMPLOYMENT INSURANCE Yes No N/A DISABILITY PAYMENTS Yes No N/A * Unemployment compensation is fully taxable. However, you may deduct any sum you repaid from the total benefits receive. Please indicate which Form you filed last year A 1040EZ How much refund did you receive from New York State income tax for 2017? $ Please indicate the amount on line 29 of Schedule A for 2017 $. INTEREST AND DIVIDEND INCOME Kindly submit to us all 1099 Dividend Forms issued by your bank or financial institution. ADJUSTMENTS TO GROSS INCOME Contributions to Retirement Plans: Amount Date of Contribution Keogh (HR-10) Self-Employed Husband Retirement Plan* Wife Individual Retirement Account Husband (Check here if Roth IRA)* Wife 12

13 Forfeited interest penalty for Husband Premature withdrawal Wife * Include contributions made after December 31, 2018 made with respect to Regular IRA maximum 2018 wages in order to be eligible is as follow: Single: $73,000 Phase in range $63,000-73,000 Qualifying Widower: $121,000 Phase in range $101, ,000 Married: $121,000 Phase in range $101, ,000 Married filing separately: $10,000 Phase in range $ 0-10,000 If one spouse is not covered by a pension plan, then the maximum wages for that individual is $199,000 (phase out amount is 189, ,000). ROTH IRA maximum contribution is $5,500 per tax payer Phase out for single person is $120, ,000 Phase out for married individuals filing jointly is $189, ,000 Phase out for married persons filing separately is $0 10,000 The maximum contribution is $5,500 per year, per taxpayer under 50 years old ($6,500 if age 50 or older but under 70 ½ at end of 2018). This applies to both Regular and Roth IRA. Maximum 401(k) is $18,500 with a catch up limit of $6,000 if you are over 50 years old. SELF EMPLOYED PLANS: (SEP) You can contribute a maximum of $55,000 or 25% of the difference between the net business income and one half of self-employment tax. Maximum income is $270,000. EDUCATOR EXPENSE You can deduct up to $250 of qualified expenses and the excess could be claimed as itemized expenses. This provision was modified to include certain expenses related to professional development courses the taxpayer takes related to the curriculum they teach or to their students. DISABILITY PAY EXCLUSION Taxpayers under 65 and who have retired on disability and are permanently and totally disabled may qualify for the exclusion. If you qualify, please furnish me with details. ALIMONY: Still applies for this year Amount paid 13

14 Recipients Name Social Security Number Amount _ Student Loan Interest _ Maximum allowed $2,500. * Phase out for single, head of household or qualifying widower is 65,000 80,000 Phase out for joint filers is 135, ,000 Self Employment Health Insurance: (Rate for 2018 is 100% of premium paid) Payer (Insurance Company) Amount Paid ITEMIZED DEDUCTION 1. Medical Expense Paid in 2018 Doctor $ Medical Insurance $ Dentist $ Prescription $ Nurses $ Medical Equipment $ Hospital Bills $ Eye Glasses $ Dentures $ Auto Miles: Total Travel to and from Hospital Contact Lenses $ and Doctor s office $ (Actual expenses) Other $ Insulin $ Total Medical Expenses $ Long-term care insurance premiums are treated as qualified medical expenses. The deductible portion of the premiums may not exceed the amounts set forth in the following table for

15 AGE AT YEAR-END Age 40 or less $ 420 Age 41 through 50 $ 790 Age 51 through 60 $ 1,580 Age 61 through 70 $ 4,220 Age 71 or older $ 5,270 MAXIMUM DEDUCTIBLE PREMIUM The limit on premiums is for each person. Note: Only the excess of 7.5% of your adjusted gross income is deductible for medical expense. TAXES PAID IN 2018: Real Estate Taxes on Residential Property Personal Property Taxes (not sales tax) NYS Estimated Taxes Paid in 2018 NYC Estimated Taxes Paid in 2018 School Taxes Sales Tax $ $ $ $ $ $ The maximum for the above category is $10,000. INTEREST EXPENSE FOR 2018: A. Mortgage interest paid to financial institutions $ B. Mortgage interest paid to individuals $ Specify: Name: Address: Social Security No. or EIN No. C. Deductible mortgage points $ D. Deductible mortgage insurance (PMI) $ E. Deductible investment interest $ F. Student loan interest; (maximum allowed $2,500) $ Note: Personal interest is no longer deductible: For example, credit cards, personal bank loans and car loans. 15

16 CHARITABLE CONTRIBUTIONS MADE AND PAID IN 2018 Cash Contributions must list every organization and amount given. Name Organization Date Amount An official letter is required from an organization for which you gave $250 or more in A canceled check by itself does not meet the Internal Revenue Service substantiation requirement. If you gave your church $50 per week and the total sum is $2,600 for 2017, treat each $50 as a separate gift. The same rule applies to payroll deduction such as the united way. Gifts from which you benefit: If you made a gift and received a benefit in return, such as food, entertainment, or merchandise, you can generally only deduct the amount that is more than the value of the benefit. But this rule does not apply to certain membership benefits provided in return for an annual payment of $75 or less. Example. You paid $70 to a charitable organization to attend a fund-raising dinner and the value of the dinner was $40. You can deduct only $30. Auto travel: 0.14c per mile $ Non Cash Organizations Name of Organization Cost Date Acquired FMV Date Donated Note: Please indicate how you determined FMV. Any amount given in excess of $500 requires Form 8283 to be completed. 16

17 Contributions made of used clothing and household items require that the clothing must be in good condition. CASUALTY LOSSES: Miscellaneous Expenses Subject to 2% of adjusted gross income has been suspended. Gambling Losses $ CHILD AND DEPENDENT CARE CREDIT Was service provided in your home? No Yes. Amount paid in each quarter $_. Did you receive employer provided dependent care benefits? No Yes Amount $ Amount must be included in line #7 and the word s DCB written on the dotted line. Did both Husband and Wife work during 2018? Yes No. Was either or both spouse full-time students during 2018? Husband or Wife only? Both Husband and Wife? Care provider s name: Address: Relationship to you Social Security No. if it is an individual Employer s identification number if it is another entity Period of Care: from to 17

18 Dependent s Name Amount Paid in 2018 Please note that it is imperative you obtain the address and Social Security Number of the person taking care of your child. Failure to obtain such information may give rise to the denial of the credit. * Maximum age for childcare is under age 13 by 12/31/2018 unless such child is disabled. Maximum expenses allowed for child and dependent care is as follows A) One child $3,000 (250 per month) B) Two or more children is $6,000 (500 per month) Rates varies on wages from $0 43,000 from 35% to 21% of expenses paid. Wages over $43,000 receive a maximum percentage of 20% of expenses paid. EARNED INCOME CREDIT Maximum credit allowed for 2018 is $3,461, $5,716, and $6,431 on maximum wages of $40,320 for one child, $45,802 for two children, and $49,194 for three or more children if your filing status is head of household or qualifying widower. You may qualify for earned income credit this year even if you do not have a qualifying child. Maximum credit is $519 on wages under $15,270. If a joint return is filed the maximum salaries are $20,950, $46,010, $51,492, and $54,884 for no children, one child, two children, and three or more children respectively. *Maximum investment income allowed for this year 2018 is $ 3,500. CHILD TAX CREDIT This credit is in addition to the child and dependent care credit and the earned income credit that you may be able to claim. Credit begins to phase out for salaries of $ 200,000 and $ 400,000 for single and married couples respectively. For persons filing married filing separately, the amount begins at $55,000. The allowable credit is reduced by $50 for each $1,000 of modified AGI above the phased-out thresholds. 18

19 MODIFIED (AGI) Maximum AGI for full credit AGI where credit disappears Single $ 200,000 $ 240,000 Married $ 400,000 $ 440,000 Head of Household $ 200,000 $ 240,000 Married filing Separate $ 200,000 $ 240,000 A SMALLER CREDIT FOR OTHER DEPENDENTS The tax reform bill also includes a nonrefundable $500 family credit for other dependents. Examples might include an aging parent who depends on you for care or a child whose support you provide, but is 17 years old or older. WHAT IS THE CHILD TAX CREDIT? The child tax credit is a credit for people who have a qualifying child; it reduces taxes that are owed. The credit can be as much as $2,000 for each qualifying child. The child must be under 17 years of age by December 31, CREDIT FOR ELECTIVE DEFERRALS AND IRA CONTRIBUTIONS (FORM 8880) This credit is commonly referred to as the retirement savings contribution credit and has also been referred to as the savers credit. The saver s credit can be claimed by: Married couples filing jointly with incomes up to $63,000 in 2018 Heads of Household with incomes up to $47,250 in 2018; and Married individuals filing separately and singles with income up to $31,500 in The maximum credit is $1,000 and maximum contribution amount is $2,000. EDUCATION CREDIT How much did you pay for? Tuition Fees $ Course Materials $ Health Fees $ Student Fees $ Is this a two-year program? Yes No 19

20 Is this a four year program? Is this a graduate program? What year in college are you? Yes No Yes No AMERICAN OPPORTUNITY CREDIT Credit is for 100% of the first $2,000 of qualified tuition and related expenses, plus 25% of the next $2,000 of expense. Maximum credit per student is $2,500 and is available for the first four years of the student s post secondary education. Maximum AGI-Single: $80,000-90,000 Married $160,000 - $180,000. Single phase out $10,000 spread where as married have a $20,000 spread. LIFETIME CREDIT Lifetime credit expense is based on tuition paid during the year How much did you pay during the year 2018? $ (Maximum eligible expense is $10,000; therefore, maximum credit is $2,000 based on a 20% maximum rate.) Maximum AGI for unmarried individuals is $57,000 67,000 and for married individuals is $114, ,000 ADOPTION CREDIT In general, the credit is available for costs incurred. Credit is permitted for qualified adoption expenses, up to a maximum nonrefundable credit (that means only individuals with tax liability will benefit) of $13,840 per child. This amount applies whether or not the eligible child is a special needs child. Qualified expenses are adoption and attorney s fees, court costs and other reasonable and necessary expenses directly related to the adoption of a qualified child. No credit is allowed for taxpayers with a Modified Adjusted Gross Income (MAGI) in excess of $247,580. Phase out amount begins from $207,580. How much did you pay for adoption expenses in 2018? $ ENERGY CREDIT Expenses incurred in 2018 Windows $ Qualified Stove (which use bromes fuel) $ Boiler $ _ Insulation $ Residential exterior doors $ _ Heat Pumps $ Furnaces $ _ Central Air Condition $ 20

21 Water Heaters $ _ Solar Electricity Equipment $ Metal Roof $ _ Other $ RATE REDUCTION CREDIT: STANDARD DEDUCTION FOR 2018: Over 65 Over 65 & Blind Single $ 12,000 $ 13,600 $ 15,200 Married filing jointly $ 24,000 $ 25,300 $ 26,600 Head of household $ 18,000 $ 19,600 $ 21,200 Married filing separately $ 12,000 $ 13,300 $ 14,600 Qualifying Widower $ 24,000 $ 25,300 $ 26,600 Note: If you are single or head of household and over 65 years of age (born before January 2, 1953) there is an additional $1,600 added to your standard deduction, and an additional $1,600 if you are legally blind. The rate for married filing jointly or separately is an additional $1,300 in each instance. Maximum Social Security wages for 2018 is $128,400. Self-employment tax is 12.4%. TAXPAYER S STATEMENT The foregoing, and all accompanying schedules and statements, have been supplied for the purpose of enabling you to prepare my (our) income tax returns for the year 2018 and the information contained above, which I (we) have read and reviewed, is true and complete to the best of my (our) knowledge and belief. I (we) understand fully that you are not in any way undertaking to audit and verify the facts as I (we) have submitted them to you. Upon request of the taxing authorities I (we) will furnish any necessary substantiation. HUSBAND DATE WIFE DATE OTHER DATE 21

22 2018 SCHEDULE C 1. Name of proprietor 2. Principal Business of Profession including product or service 3. Employer s Identification Number 4. Business Name 5. Business Address 6. Accounting Method Cash Accrual Other 7. Did you materially participate in the preparation of the business in the year 2018 Yes No 8. Did you start or acquire the business in the year 2018 Yes No If yes state date you began If you have a loss, check the box that best describes your investment in this activity. a. all investment is at risk b. some investment is not at risk If you checked box B above, you must attach Form Your loss maybe limited. Gross Sales (income) Return and allowances $ $ Beginning Inventory Purchases Cost of Labor Materials and Supplies Ending Inventory Gross Profit Other income: 22

23 EXPENSES Advertising Car & Truck Expenses Commission s Contract Labor Depletion Depreciation $ Employees Benefit Programs Pension Sep Keogh Simple IRA Insurance $ a) Malpractice b) Auto c) General Liability d) Medical Interest: a) Mortgage (paid to banks) b) Other Legal and Professional Fees Office Expense Rent or Lease a) Vehicles machinery and equipment b) Other business property Repairs & Maintenance Supplies Taxes Licenses Travel, Meals & Entertainment a) Travel b) Meals and Entertainment Utilities (Gas and Electric) Wages and Salaries Payroll Taxes: Employer s FICA 23

24 Employer s Medicare NYS Unemployment Insurance Federal Unemployment Insurance OTHER: A B C D E F G H I J K L M N 24

25 2018 SCHEDULE E RENTAL INCOME Do you rent part of your entire house? Yes No If you rent part of your house, what percent do you occupy? Number of days rented *Type of Property: 1) Single family residence 5) Land 2) Multi-family residence 6) Royalties 3) Vacation/short term rental 7) Self-Rental 4) Commercial 8) Other (describe) Property A, address: _ Property B, address: _ Property C, address: Property A Property B Property C What percent do you rent? _ *Write the number for property type _ Fair Rental Days _ Rents Received $ _ Expenses: Advertising _ Accounting fees _ Auto and travel _ Cleaning and maintenance _ Commission _ Insurance _ Legal Fees _ Mortgage interest paid to banks _ Other interest _ Repairs _ 25

26 Supplies _ Real Estate Taxes _ Water _ Utilities: Total _ A) Gas _ B) Fuel _ C) Electric _ Wages and salaries _ Other: Property A Property B Property C Exterminating _ Boiler Contract _ Snow removal _ Plumbing Repairs _ Gardening _ Monthly maintenance fee _ (Co-Ops & Condominiums) _ Rent Stabilization fee _ Inspection Fees _ Security Services (alarm) _ Postage and Mailings _ Boiler permits _ TOTAL EXPENSE $ ============ ============ =========== Rental Property: Capital Improvements paid for Nature Date Done Cost % to be expensed 26

27 * Depreciation Expense Prior Years Nature of Date Depreciation Cost Description Taken Expense Method to Date * If we prepared your 2017 tax return, do not complete this section. 27

28 Notes 28