2020 Income Tax Fundamentalist.

CA Problem 1.2 (Spring 2020 Practice Problem) Required: Complete the tax return on 2019 Form 540 and Schedule CA (540) Charlie and Camilla Garry live at 456 Main Street, Roseville, CA 95661. They have two children, Bobby and Bart, ages 7 and 20. Bart is taking a break from the University of San Diego this year. He lives with Charlie and Camilla and works part-time at Wells Fargo Bank, earning W-2 wages of $12,780 in 2019. Garry's federal adjusted gross income was $94,578 which included $95,598 in wages, $160 interest from Bank of America, $1,820 California income tax refund received in 2019, and ($3,000) long term capital loss. Not included in that amount was $3,600 interest on City of San Diego bonds, and $980 interest on Michigan State bonds. Previously, in 2018, the Garry family used itemized deductions and got full advantage from State Income Tax paid. . Federal itemized deductions were $28,490 and after limitations include: Home mortgage interest $13,200 (principal amount $350,000) Home equity loan interest $1,040, principle amount $75,000 (proceeds used to remodel their kitchen in 2017) Real estate tax $5,400 Personal property tax on value of autos $670 California income tax $8,100 (withholding on 2019 W-2 Forms) State disability insurance (SDI) $956 Cash donations (verifiable) $4,250 . . . . See the copy of the Federal Form 1040 and Schedule A provided in Canvas. The Garry family elect to contribute $200 to the School Supplies for Homeless Children Fund (code 422) The Social Security numbers are: Charlie 111-22-2020 birth date 1/1/1976; Camilla 222-33-2020 birth date 2/1/1976; Bobby 333-44-5555 birth date 3/1/2012; and Bart 555-66-7777 birth date 4/1/1999. SCHEDULE 1 OMB No. 1545-0074 Additional Income and Adjustments to Income (Form 1040 or 1040-SR) 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Arnold Morris 003-04-2020 At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? ..... Yes No Part 1 Additional Income 1 1 320 Taxable refunds, credits, or offsets of state and local income taxes 2a 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 3 Business income or (loss). Attach Schedule C 4 4 Other gains or losses). Attach Form 4797 5 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 6 6 Farm income or (loss). Attach Schedule F 7 7 Unemployment compensation 8 Other income. List type and amount Gambling 8 400 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 720 Part II Adjustments to Income 10 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 12 Health savings account deduction. Attach Form 8889 13 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 14 Deductible part of self-employment tax. Attach Schedule SE 15 15 Self-employed SEP, SIMPLE, and qualified plans 16 16 Self-employed health insurance deduction 17 17 Penalty on early withdrawal of savings 18a 18a Alimony paid b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 19 IRA deduction 5,000 20 20 Student loan interest deduction 21 21 Tuition and fees. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 22 1040-SR, line 8a For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 5.000 11040 2019 Depark of the then-Service U.S. Individual Income Tax Return OMINO. 1545-0074 Sue On-Dent with Filing Status Single Married fing Nading spey MFS Head of household hor ulyno wdowcow Check only if you thered the MPS box enter the name of tout, you the HOH ON box, enter the child me if the uniting person is ne box but not your dat Your frst naman niddin Lasten Your social incurity number Arnold Norris o o alo 412 0 2 0 fitum pouco strme ind middle Spouse's social security number Annie Morris 1 1 1 2 2 3 3 3 3 Home address and street. If you have a PO box te intructions Apt no Presidential Election Campaigs Checkheed you, you 123 North Sherman Street want to go out Chytown or poatos and ZIP code. If you have a foreign address, also completes betwee instructional Deyou Placerville, CA 95667 around You Spouse Foreign country name Foreign providestal/courty postal code it more than four denta, ons and are Standard Samen Can You as a depende Your spouse as a dependent Deduction Spon Hemdes on a spam or you were a casa Age/Bindness You Were bom before January 2.1956 Neind Spouse: Wann halve January 2015 E bind Dependents (se instruction) Sad a Rolins you Forte ELT DECE Det fane cependent Barbara MORTS 3 3 3 4 45.5 5 5 Daughter Maggie Morris 44.45 5 6 6 6 6 Parent Mel morris 5 5 5 6 6 7 7 7 7 Parent 109.485 165 1 Wages, salotas, tips, mo. Altach For W.2 1 2a Tax not 2a 625 b Table interest Altach Sch. Bir 2h 3a Owinddiende 30 b Ordinary dicend Mathsicht ab Standard Daca A tributions 40 b Taxe amount 40 Single Murid Singer Pensions and anties ec d Tamount 4d $1,200 Sa Sociale beni Sa h Tree amount sh es WOWY G Captain At Schedule Dit required if not requirather 6 w 7a Other comes from Schedule 1, ina 54400 7a - Heat b Add Ines 1, 2, 3, 4, 4d, and this is your total income 7 hau STAS sa Adamsoncem from Schedule 1. in 22 83 If you checked b Subtrastine la romina 7b. This is your adjusted gross income arbeid 9 Sende Standard deduction or itemized deduction om Schedu) 9 24.970 Don 10 Quafadade income deduction Attach Fon 106 or Form BB-A 10 Add lines and 10 11 b Taxable income Subtracting 11 tram final, or inserter For Diaclosure. Privacy Act, and Paperwork Reduction Act Notice Ann Annat Instructions. Cal, 1 2.099 720 112.460 5000 107.460 115 24,910 32.490 Form 1040 Page 2 om 1010 2009 19 Tax Chacuit any to Frid: 1014 2 472 3 D 122 Add Schedule 2. in 2, and in 12 andare 13a Child tax credt or credh for other condents 133 b Add Schede ind in 10 and northea 14 Subin 13 trom in 12.worlamero 14 15 Other income tax from Schedule 2. 10 15 16 Addis 14 and 15. This is your total tax 16 17 Federal nometne within Form Windo 17 TH the payments and wendable credite . you ng Eamed inom m IR hich IN you have Nacional de credit. Attach Schadun 12 American opportunity credit from Form 86, in d Beradik in 14 Ada inel rough 1d These your total other payments and refundable credite the 19 Anestant Tham your totalmente 5 20 Refund 20 Hinn 19 is more than 1, cine from in 1. This the amounty overald Amboto in 30 you wintrunded to you. Ime attached, check 21a gumb c Ty Checking Account number 22 Amortin 9 you want applied to your 2020 estimated to 22 Amount 25 Amount your Buttract the fronine 16. For detais on how to my structions 23 You Owe Este texte instructions 24 Third Party Din you want to low another person other than your paid preparar todos trwar with the RS7 See Instruction Yos. Como Designee Designs Perication madde nane no, PN Sign Under the town, the best among the cred, and when we wishes redige Here Your onenare Dwie Your nation then you an identity Protection Peter the Jain Struction Spouse's signature ajuntam, both Date SARS ocupation IPS your spoutan Krap a copy to hey Protection Interie your ords Phone po Emals Freporters Preparer's signature Date PIN Check Paid ad Pwty Deco Preparer Firm's name Pheren Use Only Fim dress F'S EIN Go to www.ragowo or instructions and the best information To 1040 SCHEDULE A Itemized Deductions Om No. 1545-0074 Form 1040 or 1040-SA Go to www.irs.gov/ Schedule for instructions and the latest Information. Janar 2000 2019 Decat althy Attach to Form 1040 Or 1040-SR. Internal Revenue Service Caution you wnclamang anat qualtid disaster lomon Form 4564 seo the instructions for line 16. Attachme Bane N. 07 Nire shown on Form 1040 1040-SR Your social security number Arnold Morris 003-04-2020 Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expensessen Instructions 1 Dental 2 Enter amount from Form 1040 ar 1040-SA, line 62 10T 460 Expenses a Multiply line 2 by 7.5% (0.075) 3 8,060 4 Subtract line 3 from line 1. If line 3 is more than Iine 1, enter-9- 0 Taxes You S State and local taxes Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes check this box 5a 7.29 b State and local real estate taxes (as instructions) 5b 3,890 c State and local personal property taxes 56 490 dAdd Ines 5&through 50 11.675 e Enter the smaller of line 5d or $10,000 $5,000 if married fing separately ) 5e 6 Other taxes. List type and amount 6 7 Add lines 5e and 7 10.000 Interest 8 Home mortgage interest and points. If you didn't use all of your home You Paid mortgage loans) to buy, build, or improve your home, see Caution: Your Instructions and check this box mortgage Wet deduction may be a Home mortgage interest and points reported to you an Form 1098 San instructions Ilimited 8a 12 350 inst b Home mortgage Interest not reported to you on Fam 1098. See instructions if limited. It paid to the person from whom you bought the home, ses instructions and show that person's name, identifying no. and address 5d 10.000 8b Paints not reported to you on Form 1098. See Instructions for special rules Bc d Mortgage Insurance premiums (see instructions 8d e Add lines Ba through od Be 12.350 Investment interest. Attach Form 4952 if required. See Instructions 9 10 Add lines 8e and 10 12350 Gifts to 11 Gints by cash or check. If you made any gift of $250 or more, see Charity Instructions 11 2,020 Gaution you 12 Other than by cash or check. If you made any gift of $250 or more made and fort See instructions. You must attach Form 82838 over $500. 12 Lucian 12 Carryover from prior year 13 14 Add lines 11 through 13 14 Casualty and 15 Casualty and the lossles from a federally declared disaster fother than not qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form, Soe Instructions 15 Other 16 Other--trom ist in instructions. List type and amount Itomized Deductions 16 Total 17 Add the amounts in the far right column for Ines 4 through 16. Also, enter the amount on Itemized Form 1040 or 1040-SA, line 9 17 24.970 Deductions 16 If you clect to teze deductions even though they are less than your standard doduction, check this box For Paperwork Reduction Act Notice, see the instructions for Forma 1040 and 1040-SR. Dat No. 171450 Sedule A Farm 100 or 110-SR 2013 CA Problem 1.2 (Spring 2020 Practice Problem) Required: Complete the tax return on 2019 Form 540 and Schedule CA (540) Charlie and Camilla Garry live at 456 Main Street, Roseville, CA 95661. They have two children, Bobby and Bart, ages 7 and 20. Bart is taking a break from the University of San Diego this year. He lives with Charlie and Camilla and works part-time at Wells Fargo Bank, earning W-2 wages of $12,780 in 2019. Garry's federal adjusted gross income was $94,578 which included $95,598 in wages, $160 interest from Bank of America, $1,820 California income tax refund received in 2019, and ($3,000) long term capital loss. Not included in that amount was $3,600 interest on City of San Diego bonds, and $980 interest on Michigan State bonds. Previously, in 2018, the Garry family used itemized deductions and got full advantage from State Income Tax paid. . Federal itemized deductions were $28,490 and after limitations include: Home mortgage interest $13,200 (principal amount $350,000) Home equity loan interest $1,040, principle amount $75,000 (proceeds used to remodel their kitchen in 2017) Real estate tax $5,400 Personal property tax on value of autos $670 California income tax $8,100 (withholding on 2019 W-2 Forms) State disability insurance (SDI) $956 Cash donations (verifiable) $4,250 . . . . See the copy of the Federal Form 1040 and Schedule A provided in Canvas. The Garry family elect to contribute $200 to the School Supplies for Homeless Children Fund (code 422) The Social Security numbers are: Charlie 111-22-2020 birth date 1/1/1976; Camilla 222-33-2020 birth date 2/1/1976; Bobby 333-44-5555 birth date 3/1/2012; and Bart 555-66-7777 birth date 4/1/1999. SCHEDULE 1 OMB No. 1545-0074 Additional Income and Adjustments to Income (Form 1040 or 1040-SR) 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Arnold Morris 003-04-2020 At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? ..... Yes No Part 1 Additional Income 1 1 320 Taxable refunds, credits, or offsets of state and local income taxes 2a 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 3 Business income or (loss). Attach Schedule C 4 4 Other gains or losses). Attach Form 4797 5 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 6 6 Farm income or (loss). Attach Schedule F 7 7 Unemployment compensation 8 Other income. List type and amount Gambling 8 400 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 720 Part II Adjustments to Income 10 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 12 Health savings account deduction. Attach Form 8889 13 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 14 Deductible part of self-employment tax. Attach Schedule SE 15 15 Self-employed SEP, SIMPLE, and qualified plans 16 16 Self-employed health insurance deduction 17 17 Penalty on early withdrawal of savings 18a 18a Alimony paid b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 19 IRA deduction 5,000 20 20 Student loan interest deduction 21 21 Tuition and fees. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 22 1040-SR, line 8a For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 5.000 11040 2019 Depark of the then-Service U.S. Individual Income Tax Return OMINO. 1545-0074 Sue On-Dent with Filing Status Single Married fing Nading spey MFS Head of household hor ulyno wdowcow Check only if you thered the MPS box enter the name of tout, you the HOH ON box, enter the child me if the uniting person is ne box but not your dat Your frst naman niddin Lasten Your social incurity number Arnold Norris o o alo 412 0 2 0 fitum pouco strme ind middle Spouse's social security number Annie Morris 1 1 1 2 2 3 3 3 3 Home address and street. If you have a PO box te intructions Apt no Presidential Election Campaigs Checkheed you, you 123 North Sherman Street want to go out Chytown or poatos and ZIP code. If you have a foreign address, also completes betwee instructional Deyou Placerville, CA 95667 around You Spouse Foreign country name Foreign providestal/courty postal code it more than four denta, ons and are Standard Samen Can You as a depende Your spouse as a dependent Deduction Spon Hemdes on a spam or you were a casa Age/Bindness You Were bom before January 2.1956 Neind Spouse: Wann halve January 2015 E bind Dependents (se instruction) Sad a Rolins you Forte ELT DECE Det fane cependent Barbara MORTS 3 3 3 4 45.5 5 5 Daughter Maggie Morris 44.45 5 6 6 6 6 Parent Mel morris 5 5 5 6 6 7 7 7 7 Parent 109.485 165 1 Wages, salotas, tips, mo. Altach For W.2 1 2a Tax not 2a 625 b Table interest Altach Sch. Bir 2h 3a Owinddiende 30 b Ordinary dicend Mathsicht ab Standard Daca A tributions 40 b Taxe amount 40 Single Murid Singer Pensions and anties ec d Tamount 4d $1,200 Sa Sociale beni Sa h Tree amount sh es WOWY G Captain At Schedule Dit required if not requirather 6 w 7a Other comes from Schedule 1, ina 54400 7a - Heat b Add Ines 1, 2, 3, 4, 4d, and this is your total income 7 hau STAS sa Adamsoncem from Schedule 1. in 22 83 If you checked b Subtrastine la romina 7b. This is your adjusted gross income arbeid 9 Sende Standard deduction or itemized deduction om Schedu) 9 24.970 Don 10 Quafadade income deduction Attach Fon 106 or Form BB-A 10 Add lines and 10 11 b Taxable income Subtracting 11 tram final, or inserter For Diaclosure. Privacy Act, and Paperwork Reduction Act Notice Ann Annat Instructions. Cal, 1 2.099 720 112.460 5000 107.460 115 24,910 32.490 Form 1040 Page 2 om 1010 2009 19 Tax Chacuit any to Frid: 1014 2 472 3 D 122 Add Schedule 2. in 2, and in 12 andare 13a Child tax credt or credh for other condents 133 b Add Schede ind in 10 and northea 14 Subin 13 trom in 12.worlamero 14 15 Other income tax from Schedule 2. 10 15 16 Addis 14 and 15. This is your total tax 16 17 Federal nometne within Form Windo 17 TH the payments and wendable credite . you ng Eamed inom m IR hich IN you have Nacional de credit. Attach Schadun 12 American opportunity credit from Form 86, in d Beradik in 14 Ada inel rough 1d These your total other payments and refundable credite the 19 Anestant Tham your totalmente 5 20 Refund 20 Hinn 19 is more than 1, cine from in 1. This the amounty overald Amboto in 30 you wintrunded to you. Ime attached, check 21a gumb c Ty Checking Account number 22 Amortin 9 you want applied to your 2020 estimated to 22 Amount 25 Amount your Buttract the fronine 16. For detais on how to my structions 23 You Owe Este texte instructions 24 Third Party Din you want to low another person other than your paid preparar todos trwar with the RS7 See Instruction Yos. Como Designee Designs Perication madde nane no, PN Sign Under the town, the best among the cred, and when we wishes redige Here Your onenare Dwie Your nation then you an identity Protection Peter the Jain Struction Spouse's signature ajuntam, both Date SARS ocupation IPS your spoutan Krap a copy to hey Protection Interie your ords Phone po Emals Freporters Preparer's signature Date PIN Check Paid ad Pwty Deco Preparer Firm's name Pheren Use Only Fim dress F'S EIN Go to www.ragowo or instructions and the best information To 1040 SCHEDULE A Itemized Deductions Om No. 1545-0074 Form 1040 or 1040-SA Go to www.irs.gov/ Schedule for instructions and the latest Information. Janar 2000 2019 Decat althy Attach to Form 1040 Or 1040-SR. Internal Revenue Service Caution you wnclamang anat qualtid disaster lomon Form 4564 seo the instructions for line 16. Attachme Bane N. 07 Nire shown on Form 1040 1040-SR Your social security number Arnold Morris 003-04-2020 Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expensessen Instructions 1 Dental 2 Enter amount from Form 1040 ar 1040-SA, line 62 10T 460 Expenses a Multiply line 2 by 7.5% (0.075) 3 8,060 4 Subtract line 3 from line 1. If line 3 is more than Iine 1, enter-9- 0 Taxes You S State and local taxes Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes check this box 5a 7.29 b State and local real estate taxes (as instructions) 5b 3,890 c State and local personal property taxes 56 490 dAdd Ines 5&through 50 11.675 e Enter the smaller of line 5d or $10,000 $5,000 if married fing separately ) 5e 6 Other taxes. List type and amount 6 7 Add lines 5e and 7 10.000 Interest 8 Home mortgage interest and points. If you didn't use all of your home You Paid mortgage loans) to buy, build, or improve your home, see Caution: Your Instructions and check this box mortgage Wet deduction may be a Home mortgage interest and points reported to you an Form 1098 San instructions Ilimited 8a 12 350 inst b Home mortgage Interest not reported to you on Fam 1098. See instructions if limited. It paid to the person from whom you bought the home, ses instructions and show that person's name, identifying no. and address 5d 10.000 8b Paints not reported to you on Form 1098. See Instructions for special rules Bc d Mortgage Insurance premiums (see instructions 8d e Add lines Ba through od Be 12.350 Investment interest. Attach Form 4952 if required. See Instructions 9 10 Add lines 8e and 10 12350 Gifts to 11 Gints by cash or check. If you made any gift of $250 or more, see Charity Instructions 11 2,020 Gaution you 12 Other than by cash or check. If you made any gift of $250 or more made and fort See instructions. You must attach Form 82838 over $500. 12 Lucian 12 Carryover from prior year 13 14 Add lines 11 through 13 14 Casualty and 15 Casualty and the lossles from a federally declared disaster fother than not qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form, Soe Instructions 15 Other 16 Other--trom ist in instructions. List type and amount Itomized Deductions 16 Total 17 Add the amounts in the far right column for Ines 4 through 16. Also, enter the amount on Itemized Form 1040 or 1040-SA, line 9 17 24.970 Deductions 16 If you clect to teze deductions even though they are less than your standard doduction, check this box For Paperwork Reduction Act Notice, see the instructions for Forma 1040 and 1040-SR. Dat No. 171450 Sedule A Farm 100 or 110-SR 2013