1. James Dangell (birthdate August 2, 1976) is a single taxpayer. Jim's earnings and with- holdings as the manager of a local casino for 2020 are reported on his Form W-2: a Employee's social security number b Employer identification number (EIN) 31-1459656 555-94-9358 c Employer's name, address, and ZIP code Lucky Ace Casino 700 N. Sierra Street Reno, NV 89503 d Control number e Employee's first name and initial James Dangell 911 Parr Blvd. Reno, NV 89512 Last name Safe, accurate, OMB No. 1545-0008 FAST! Use IRS e file 1 Wages, tips, other compensation 192,000.00 3 Social security wages 137,700.00 5 Medicare wages and tips 200,000.00 7 Social security tips 9 Suff. 11 Nonqualified plans Visit the IRS website at www.irs.gov/efile 2 Federal income tax withheld 24,500.00 4 Social security tax withheld 8,537.40 6 Medicare tax withheld 2,900.00 8 Allocated tips 10 Dependent care benefits D 12a See instructions for box 12 8,000.00 13 Statutory amplaree Retirement Third-party 12b sick pay W 1,200.00 14 Other 12c f Employee's address and ZIP code 15 State Employer's state ID number NV 16 State wages, tips, etc. 17 State income tax 12d 18 Local wages, tips, etc. 19 Local income tax 20 Locality name Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 2020 Department of the Treasury-Internal Revenue Service Jim's other income includes interest on a savings account at Nevada National Bank of $13,700. Jim pays his ex-spouse, Sarah McLoughlin, $3,900 per month in accordance with their February 12, 2019 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,800 per month. His ex- wife's Social Security number is 554-44-5555. ing the In 2020, Jim purchased a new car and so he kept track of his sales tax receipts dur- year. His actual sales tax paid is $3,650, which exceeds the estimated amount per the IRS tables. Jim participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $75 in 2020. During the year, Jim paid the following amounts (all of which can be substantiated): Credit card interest $1,760 Auto loan interest 4,300 Auto insurance 900 Property taxes on personal residence 2,988 Contributions to HSA 2,000 Income tax preparation fee 900 Charitable contributions (all cash): Boy Scouts 1,350 St. Matthews Church Nevada Democratic Party 3,100 (value of dinner is $25) Fund-raising dinner for the Reno Auto Museum 250 100 In 2020, Jim inherited over $500,000 from his Uncle Travis that died in 2020. Al- though Jim invested a large portion, he also contributed $125,000 cash to the newly named Travis School of Criminal Justice at the University of Reno. Jim also received the following Form 1098: CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Reno Savings & Loan 49 Commerce Street Reno, NV 89501 Caution: The amount shown may OMB No. 1545-1380 not be fully deductible by you. Limits based on the loan amount and the cost and value of the secured property may apply. Also, you may only deduct interest to the extent it was incurred by you, actually paid by you, and not reimbursed by another person. 2020 Form 1098 1 Mortgage interest received from payer(s)/borrower(s) $ 18,888,78 RECIPIENT'S/LENDER'S TIN 33-1234569 PAYER'S/BORROWER'S TIN 555-94-9358 PAYER'S/BORROWER'S name James Dangell Street address (including apt. no.) 911 Parr Boulevard City or town, state or province, country, and ZIP or foreign postal code Reno, NV 89512 9 Number of properties securing the 10 Other mortgage 1 2 Outstanding mortgage principal $ 592,355.15 3 Mortgage origination date Mar 3, 2004 4 Refund of overpaid interest 5 Mortgage insurance premiums $ $ 6 Points paid on purchase of principal residence $ 7 If address of property securing mortgage is the same as PAYER'S/BORROWER'S address, the box is checked, or the address or description is entered in box 8. 8 Address or description of property securing mortgage (see instructions) Mortgage Interest Statement Copy B For Payer/ Borrower The information in boxes 1 through 9 and 11 is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points, reported in boxes 1 and 6; or because you didn't report the refund of interest (box 4); ar because you claimed a nondeductible item, 11 Mortgage acquisition date Account number (see instructions) Form 1098 (Keep for your records) www.irs.gov/Form1098 Department of the Treasury - Internal Revenue Service Required: Complete Jim's federal tax return for 2020. Use Form 1040, Schedule 1, Schedule A, Schedule B, and Form 8889 to complete this tax return. Make realistic assumptions about any missing data. 2000 2A. Bea Jones (birthdate March 27, 1985) moved from Texas to Florida in January 2020 after divorcing her spouse in 2019. She and her daughter, Dee Jones (birthdate 5/30/2010, Social Security number 121-44-6666) live at 654 Ocean Way, Gulfport, FL 33707. Bea provides all of Dee's support. Bea can claim a child tax credit for Dee. Bea's Social Secu- rity number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2020 for her job as a manager at a Florida shrimp-processing plant are: a Employee's social security number 466-78-7359 b Employer identification number (EIN) 22-3134145 c Employer's name, address, and ZIP code Gulf Shrimp Co. 101 Bay Shore Dr. Unit Q10 St. Petersburg, FL 33701 d Control number Safe, accurate, IRSN file OMB No. 1545-0008 FAST! Use 1 Wages, tips, other compensation 51,200.00 3 Social security wages 51,200.00 5 Medicare wages and tips 51,200.00 7 Social security tips 9 Suff. Last name 11 Nonqualified plans Visit the IRS website at www.irs.gov/efile 2 Federal income tax withheld 3,600.00 4 Social security tax withheld 3,174.40 6 Medicare tax withheld 742.40 8 Allocated tips 10 Dependent care benefits 12a See instructions for box 12 e Employee's first name and initial Bea Jones 654 Ocean Way Gulfport, FL 33707 f Employee's address and ZIP code 13 Statutory employee 14 Other Retirement plan Third-party sick pay 12b 12c 12d 15 State Employer's state ID number FL 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 2020 Department of the Treasury-Internal Revenue Service Bea's other income includes interest on a savings account at Beach National Bank of $1,200 and $600 per month alimony from her ex-husband in accordance with their August 2019 divorce decree. In 2020, during the COVID pandemic, Bea's employer agreed to pay $5,250 of her student loans under the employee educational assistance plan. $4,500 went to the loan principal and the rest was interest. Unfortunately, that did not cover all of Bea's student loan payment and she was required to pay another $450 of student loan interest herself. Bea received a $1,700 EIP in 2020. In order to move herself and Dee after the divorce, Bea spent $800 moving her household goods (trailer rental), $200 on meals and $300 on lodging while traveling between Texas and Florida. The drive was 1,005 miles. After moving to Gulfport, Bea sent Dee to a local private school for the remainder of 5th grade. Bea used $4,000 from Dee's Section 529 plan to pay for private school tuition as reported on the Form 1099-Q below. Dee had always attended public schools in Texas. CORRECTED (if checked) PAYER'S/TRUSTEE'S name, street address, city or town, state or province, 1 Gross distribution country, ZIP or foreign postal code, and telephone no. Texas College Savings Plan PO Box 13400 Austin, TX 78711 4,000.00 $ 2 Earnings 254.00 $ PAYER'S/TRUSTEE'S TIN 22-1456712 RECIPIENT'S TIN 121-44-6666 3 Basis RECIPIENT'S name Dee Jones Street address (including apt. no.) 654 Ocean Way City or town, state or province, country, and ZIP or foreign postal code Gulfport, FL 33707 Account number (see instructions) $ 3,746.00 5 Distribution is from: Qualified tuition program- Private or State X Coverdell ESA OMB No. 1545-1760 Form 1099-Q (Rev. November 2019) For calendar year 20 20 4 Trustee-to-trustee transfer 6 If this box is checked, the recipient is not the designated beneficiary If the fair market value (FMV) is shown below, see Pub. 970, Tax Benefits for Education, for how to figure earnings. Dist Code 1 Form 1099-Q (Rev. 11-2019) (keep for your records) www.irs.gov/Form1099Q Payments From Qualified Education Programs (Under Sections 529 and 530) Copy B For Recipient This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you this income is taxable and the IRS determines that it has not been reported. Department of the Treasury - Internal Revenue Service Bea's employer operates a 401(k) plan, and although she is eligible, Bea does not participate. During 2020, Bea paid the following amounts (all of which can be substantiated): Home mortgage interest (1098 not shown) Auto loan interest $8,921 2,300 Property taxes on personal residence Unreimbursed hospital bills Doctor bills 3,200 3,300 2,612 Other deductible medical expenses 800 Income tax preparation fee 600 925 3,300 Job-hunting expenses Contribution to IRA After the divorce, Bea had to purchase a car for herself and all the furnishings for her home. She kept her receipts and has total sales taxes of $2,730, which exceeds the sales tax estimate from the IRS tables. In September 2020, Tropical Storm Yuri struck Gulfport and a tree fell on Bea's home. Bea acquired the home in January 2020 for $112,000. The estimated loss in market value from damage was equal to her repair charge of $12,000. The damage caused by TS Yuri was declared a federal disaster (code EM-1212). Bea's deductible was quite high and her insurance company only reimbursed her $2,000. ule A, and Form 4684 (if needed) to complete this tax return. Make realistic assumptions Required: Complete Bea's federal tax return for 2020. Use Form 1040, Schedule 1, Sched- about any missing data