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2. Ralph John Watkins, SSN 243-94-4052, nephew of Nila. Single. Born March 29, 1997. Resided in Milano, Texas. Earned $11,000 as a rather Bohemian freelance

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2. Ralph John Watkins, SSN 243-94-4052, nephew of Nila. Single. Born March 29, 1997. Resided in Milano, Texas. Earned $11,000 as a rather Bohemian freelance artist, but spent only $2,340 of his earnings and banked the rest. The Ambersons contributed 75 percent of his support. 1.3 Taxpayer Filing Information: The following filing information relates to the Ambersons: The Ambersons wish to file as married filing jointly for 2019. . Nila elects to contribute to the Presidential Election Campaign Fund. George does not make this election. The Ambersons are both calendar year taxpayers. The Ambersons both follow the cash receipts method. The Ambersons prefer that any tax overpayment be refunded rather than credited to their 2020 Federal tax return. 1.4 Data Relating to 2018 Federal Tax Returns: The following data relate to the 2018 tax returns filed by George and Nila Amberson: . . . George filed his 2018 Federal income tax return as a qualifying widower. Nila filed her 2018 Federal income tax return as a single taxpayer. Neither George or Nila reported any other carry forwards on their 2018 Federal Income tax returns. INCOME SOURCES 2.1 Salary Income: As stated in Section 1.1 above, Nila was employed as a professor of English literature at Howard Payne University during the entire year. Her Form W-2 as filed by Howard Payne University is attached. Note that Texas has no state individual income tax regime. Therefore, the section of Nila's W-2 dealing with state tax information is blank. 2.2 Income from Trade or Business: A. As stated in Section 1.1 above, George operated an unincorporated landscape engineering firm during the entire year. His business consists of designing and installing landscape designs that comprise an integral component of the construction of new buildings in central Texas. George has operated the landscaping engineering business continuously since 2008. George has operated his business out of an office in his principal residence in Temple. George accounts for all transactions on the cash receipts method. George's employer identification number (EIN) is 86-2528181. His applicable business code is 541320. George is at-risk for all losses. B. The following income were posted to George's business checkbook: a. Sales $208,000 b. Proceeds from business loan $42,000

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