1:3-59 TAX FORM/RETURN PREPARATION PROBLEMS Sally W. Emanual, a teacher, had the following dividends and interest during the current year: Acorn Corporation bond interest $ 700 City of Boston bonds interest 1,000 Camp Bank interest 1,250 Jet Corporation dividend (qualified) 1,300 North Mutual fund Capital gain distribution 100 Ordinary dividend (qualified) 150 Nontaxable distribution 200 450 Blue Corporation foreign dividend 250 Additional information pertaining to Sally Emanual includes Salary $70,000 Rent income 12,000 Expenses related to rent income 14,000 Pension benefits 7,000 Taxable alimony paid to Sally 4,000 The taxable portion of the pension is $7,000. Sally actively participates in the rental activity. Other relevant information includes Address: 430 Rumsey Place, West Falls, California 92699 Occupation: Credit manager Social Security number: 123-45-6789 Marital status: Single Date of divorce: January 10, 2017 Complete Sally's Schedule 1, Schedule B and compute her taxable income on Form 1040. Assume Schedule E has already been prepared. Also assume that the couple had no trans- actions involving virtual currency, made no charitable contributions during the area Chapter 3: TAX4001.791&792F21 Co had no foreign bank accounts or trusts. 1040 Dopartment of the Treasury Intemol Ravenud Sorvaa (99) U.S. Individual Income Tax Return 2020 OMB No. 1645-0074 IHS Use Only--Do not write or stapte In this space. Filing Status Single [ Married filing jointly Married filing separately (MFS) Head of household (HOH) D Qualifying widow(er) (Qw Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box, person is a child but not your dependent Your first name and middle Initial Last name Your social security number If joint retum, spouse's first name and middle initial Last name Spouse's soclal security number Home address (number and street). If you have a P.O. box, see instructions, City, town, or post office. If you have a foreign address, also comploto spaces below. Stato Apt. no. Presidential Election Campaign Check here if you, or your ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign postal code your tax or refund. You Spouse Foreign country name Foreign province/state/county No At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? [Yos Standard Someone can claim: You as a dependent O Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien MI Are blind Spouse: (2) Social security number Was born before January 2, 1956 Is blind (3) Relationship 14 If qualifies for (see instructions): to you Child tax credit Credit for other dependents Age/Blindness You: D Were bom before January 2, 1956 Dependents (see instructions): If more (1) First name Last name than four dependents, see instructions and check here I 1 2b BE * F 5b ME 6b 7 8 3 9 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach 2a Tax-exempt interest. b Taxable interest Sch. Bit 3a Qualified dividends Sa b Ordinary dividends required. IRA distributions b Taxable amount : ba Pensions and annuities 5a b Taxable amount : ndard 6a al security benefits Ga b Taxable amount . Deduction for- T Capital gain or (loss). Attach Schedule D if required. If not required, check here - Single or Mamied filing 8 Other income from Schedule 1, line 9 separately, 9 $12 400 Add lines 1, 2b, 3b. 4b, 5b, 6b, 7, and 8. This is your total income Married illing 10 Adjustments to income: jointly or Qualifying From Schedule 1, line 22 10a widowler b Charitable contributions If you take the standard deduction. See Instructions 10b $24.800 I Head of Add lines 10a and 10b. These are your total adjustments to income household, $18.650 11 Subtract line 10c from line 9. This is your adjusted gross income - If you checked 12 Standard deduction or itemized deductions (from Schedule A) any box under Standard 13 Qualifled business Income deduction. Attach Form 8995 or Form 8995-A Deduction, see instructions. Add lines 12 and 13 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Call No. 111320B RE 106 11 15 Form 1040 (2020) as af ] Page 2 Form 1040 (2020) 88714 2 4972 3 16 Tax (see instructions). Check if any from Form(s): 1 Amount from Schedule 2, line 3 18 Add lines 16 and 17 19 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 Add lines 19 and 20 21 22 Subtract line 21 from line 18. If zero or less, enter -0- 22 23 23 Other taxes, including self-employment tax, from Schedule 2, line 10 24 Add lines 22 and 23. This is your total tax Federal income tax withheld from: 25a a Form(s) W-2 b Form(s) 1099 25b C Other forms (see instructions) 250 d Add lines 25a through 25c 250 2020 estimated tax payments and amount applied from 2019 retum . alf you have a Qualifying child, 27 Earned income credit (EIC). 27 attach Sch, EC. 28 Additional child tax credit. Attach Schedule 8812 28 all you have montaxable 29 American opportunity credit from Form 8863, line 8. 29 combat pay. see instructions. 30 Recovery rebate credit. See Instructions 30 31 Amount from Schedule 3, line 13 32 Add lines 27 through 31. These are your total other payments and refundable credits 32 33 Add lines 25d, 26, and 32. These are your total payments 33 Refund If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here 35a Direct deposit? b Routing number >c Type: : Checking Savi Sara See instructions. d Account number Amount of line 34 you want applied to your 2021 estimated tax 36 Amount Subtract line 33 from line 24. This is the amount you owe now 37 You Owe Note: Schedule H and Schedule SE filers, line 37 may not represent all of the taxes you owe for For details on 2020. See Schedule 3, line 12e, and its instructions for details. how to pay, Set Instructions. 38 Estimated tax penalty (see Instructions) 38 Third Party Do you want to allow another person to discuss this return with the IRS? See Designee instrictions Yes. Complete below. No Dee's Phone Personal Identification namn number (PIN) Sign Under penalties 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. Declaration of preparar (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Joint retum? (see inst.) See Instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for your records. Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Paid Preparer's signature PTIN Check it: Preparer Self-employed Firm's name Phone no. Firm's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest Information. Form 1040 (2020) no. Use Only ns Additional Income and Adjustments to Income 2020 SCHEDULE 1 OMB No. 1545-0074 (Form 1040) Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Altachment Internal Revenue Service Go to www.lrs.gov/Form 1040 for instructions and the latest Information. Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number Part Additional Income 1 2a 3 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received . b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F 7 Unemployment compensation , 8 Other income. List type and amount 4 5 6 7 IN 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Part II Adjustments to Income 9 1 3 H 10 Educator -xpenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 15 Self-employed SEP, SIMPLE, and qualified plans 15 16 Self-employed health insurance deduction . 16 17 Penalty on early withdrawal of savings 18a Alimony paid. 118a b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Tuition and fees deduction. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 20:20 22 kulalhatunko on 1:3-59 TAX FORM/RETURN PREPARATION PROBLEMS Sally W. Emanual, a teacher, had the following dividends and interest during the current year: Acorn Corporation bond interest $ 700 City of Boston bonds interest 1,000 Camp Bank interest 1,250 Jet Corporation dividend (qualified) 1,300 North Mutual fund Capital gain distribution 100 Ordinary dividend (qualified) 150 Nontaxable distribution 200 450 Blue Corporation foreign dividend 250 Additional information pertaining to Sally Emanual includes Salary $70,000 Rent income 12,000 Expenses related to rent income 14,000 Pension benefits 7,000 Taxable alimony paid to Sally 4,000 The taxable portion of the pension is $7,000. Sally actively participates in the rental activity. Other relevant information includes Address: 430 Rumsey Place, West Falls, California 92699 Occupation: Credit manager Social Security number: 123-45-6789 Marital status: Single Date of divorce: January 10, 2017 Complete Sally's Schedule 1, Schedule B and compute her taxable income on Form 1040. Assume Schedule E has already been prepared. Also assume that the couple had no trans- actions involving virtual currency, made no charitable contributions during the area Chapter 3: TAX4001.791&792F21 Co had no foreign bank accounts or trusts. 1040 Dopartment of the Treasury Intemol Ravenud Sorvaa (99) U.S. Individual Income Tax Return 2020 OMB No. 1645-0074 IHS Use Only--Do not write or stapte In this space. Filing Status Single [ Married filing jointly Married filing separately (MFS) Head of household (HOH) D Qualifying widow(er) (Qw Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box, person is a child but not your dependent Your first name and middle Initial Last name Your social security number If joint retum, spouse's first name and middle initial Last name Spouse's soclal security number Home address (number and street). If you have a P.O. box, see instructions, City, town, or post office. If you have a foreign address, also comploto spaces below. Stato Apt. no. Presidential Election Campaign Check here if you, or your ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign postal code your tax or refund. You Spouse Foreign country name Foreign province/state/county No At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? [Yos Standard Someone can claim: You as a dependent O Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien MI Are blind Spouse: (2) Social security number Was born before January 2, 1956 Is blind (3) Relationship 14 If qualifies for (see instructions): to you Child tax credit Credit for other dependents Age/Blindness You: D Were bom before January 2, 1956 Dependents (see instructions): If more (1) First name Last name than four dependents, see instructions and check here I 1 2b BE * F 5b ME 6b 7 8 3 9 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach 2a Tax-exempt interest. b Taxable interest Sch. Bit 3a Qualified dividends Sa b Ordinary dividends required. IRA distributions b Taxable amount : ba Pensions and annuities 5a b Taxable amount : ndard 6a al security benefits Ga b Taxable amount . Deduction for- T Capital gain or (loss). Attach Schedule D if required. If not required, check here - Single or Mamied filing 8 Other income from Schedule 1, line 9 separately, 9 $12 400 Add lines 1, 2b, 3b. 4b, 5b, 6b, 7, and 8. This is your total income Married illing 10 Adjustments to income: jointly or Qualifying From Schedule 1, line 22 10a widowler b Charitable contributions If you take the standard deduction. See Instructions 10b $24.800 I Head of Add lines 10a and 10b. These are your total adjustments to income household, $18.650 11 Subtract line 10c from line 9. This is your adjusted gross income - If you checked 12 Standard deduction or itemized deductions (from Schedule A) any box under Standard 13 Qualifled business Income deduction. Attach Form 8995 or Form 8995-A Deduction, see instructions. Add lines 12 and 13 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Call No. 111320B RE 106 11 15 Form 1040 (2020) as af ] Page 2 Form 1040 (2020) 88714 2 4972 3 16 Tax (see instructions). Check if any from Form(s): 1 Amount from Schedule 2, line 3 18 Add lines 16 and 17 19 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 Add lines 19 and 20 21 22 Subtract line 21 from line 18. If zero or less, enter -0- 22 23 23 Other taxes, including self-employment tax, from Schedule 2, line 10 24 Add lines 22 and 23. This is your total tax Federal income tax withheld from: 25a a Form(s) W-2 b Form(s) 1099 25b C Other forms (see instructions) 250 d Add lines 25a through 25c 250 2020 estimated tax payments and amount applied from 2019 retum . alf you have a Qualifying child, 27 Earned income credit (EIC). 27 attach Sch, EC. 28 Additional child tax credit. Attach Schedule 8812 28 all you have montaxable 29 American opportunity credit from Form 8863, line 8. 29 combat pay. see instructions. 30 Recovery rebate credit. See Instructions 30 31 Amount from Schedule 3, line 13 32 Add lines 27 through 31. These are your total other payments and refundable credits 32 33 Add lines 25d, 26, and 32. These are your total payments 33 Refund If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here 35a Direct deposit? b Routing number >c Type: : Checking Savi Sara See instructions. d Account number Amount of line 34 you want applied to your 2021 estimated tax 36 Amount Subtract line 33 from line 24. This is the amount you owe now 37 You Owe Note: Schedule H and Schedule SE filers, line 37 may not represent all of the taxes you owe for For details on 2020. See Schedule 3, line 12e, and its instructions for details. how to pay, Set Instructions. 38 Estimated tax penalty (see Instructions) 38 Third Party Do you want to allow another person to discuss this return with the IRS? See Designee instrictions Yes. Complete below. No Dee's Phone Personal Identification namn number (PIN) Sign Under penalties 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. Declaration of preparar (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Joint retum? (see inst.) See Instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for your records. Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Paid Preparer's signature PTIN Check it: Preparer Self-employed Firm's name Phone no. Firm's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest Information. Form 1040 (2020) no. Use Only ns Additional Income and Adjustments to Income 2020 SCHEDULE 1 OMB No. 1545-0074 (Form 1040) Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Altachment Internal Revenue Service Go to www.lrs.gov/Form 1040 for instructions and the latest Information. Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number Part Additional Income 1 2a 3 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received . b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F 7 Unemployment compensation , 8 Other income. List type and amount 4 5 6 7 IN 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Part II Adjustments to Income 9 1 3 H 10 Educator -xpenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 15 Self-employed SEP, SIMPLE, and qualified plans 15 16 Self-employed health insurance deduction . 16 17 Penalty on early withdrawal of savings 18a Alimony paid. 118a b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Tuition and fees deduction. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 20:20 22 kulalhatunko on