Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2B. John Fuji (birthdate June 6, 1981) received the following Form W-2 from his employer related to his job as a manager at a Washington

  • 2B.

    John Fuji (birthdate June 6, 1981) received the following Form W-2 from his employer related to his job as a manager at a Washington apple-processing plant:

    Johns other income includes interest on a Certificate of Deposit reported on a Form 1099-INT:

    Also, in accordance with the January 2016 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075) in 2020.

    John received the following Form 1098 reporting mortgage interest and property taxes:

    John tried his hand at day trading for one week in February 2020. He received a substitute Form 1099-B from his broker. Because the IRS was provided the acquisition date and basis for all trades and none required any adjustments or codes, these can be entered as a summary entry into Schedule D and no Form 8949 needs to be prepared.

    During 2020, John paid the following amounts (all of which can be substantiated):

    Auto loan interest

    1,575

    Credit card interest

    655

    State sales tax (actual exceeds estimated)

    1,780

    Doctor bills

    4,000

    Other deductible medical expenses

    1,800

    Income tax preparation fee

    500

    Job-hunting expenses

    925

    Cash charitable donation to the Jonagold Research Center

    400

    Johns employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA.

    John received a $1,200 EIP in 2020.

    Required: Complete Johns federal tax return for 2020. Use Form 1040, Schedule 1, Schedule A, and Schedule D as needed to complete this tax return. Make realistic assumptions about any missing data.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial & Managerial Accounting, The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

7th Edition

0136505279, 9780136505273

More Books

Students also viewed these Accounting questions

Question

Discuss the importance of linking pay to ethical behavior.

Answered: 1 week ago

Question

Explain how to reward individual and team performance.

Answered: 1 week ago