Reference no: EM132695809

Problem - Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the financial information shown below for that calendar year A blank Form 1040 and Schedule 1 may be obtained at IRS website.

Scholarship used to pay tuition $5,750

Scholarship used to pay room and board 1,850

Salary 55,000

Interest income 185

Itemized Potential itemized deductions 3,000

Income taxes withheld 2,600

Required -

1. Prepare Liam's 2018 tax return, using a $12,000 standard deduction and the tax rates.

2. Prepare Liam's 2018 tax return using the data in part a along with the following information:

IRA contribution $5,000

Cash dividends received 150