Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2020. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced on 12/31/2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,000 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,800 in state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for Heather $ 200 $7,952 $1,100 $ 350 $ 100 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,500 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,000, but she did not sell any of her stocks. Heather reported $6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year. Reba had $10,000 of federal income taxes withheld by her employer. Heather made $1,000 of estimated tax payments during the year. Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA). Comprehensive Problem 8-84 Part a-2 Using the information from part a-1, Complete pages 1 and 2, Schedule 1, and Schedule 3 of Form 1040 for Reba. Reba Dixon's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Reba Dixon: 111-11-1111 Heather Dixon: 222-22-2222 (Input all the values as positive numbers. Use 2020 tax rules regardless of year on tax form. Round your intermediate computations and final answers to the nearest whole dollar amount.) Required information 1040 for a couple Married Filing Jointly with two dependents. 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Page 1 of Form 1040. Use provided information and follow instructions on form. 2019 OMB No. 1545-0074 IRS Use Only-Do not write in this space. Filing Status O Single Married filing jointly Married filing separately (MFS) V Head of household (HOH) O Qualifying widow(er) (QW) Check only one box. If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. Your social socurity number (Enter as xxx-X-XXXX) Your first namIe and middle initial Last name Reba Dixon 111-11-1111 If joint retum, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). You O Spouse Foreign country name Foreign province'statelcounty Foreign postal code If more than four dependents, see instructions and here Someone can claim: You as a dependent Your spouse as a dependent Standard Deduction Spouse itemizes on a separate return or you were a dual-status alien |Were born before January 2, 1955 OAre blind Spouse: Was born before January 2. 1955 Is blind (4) i qualifies for (see instructions): Age/Blindness You: Dependents (see instructions): (2) Sacial securitly number (3) Relationship to you (1) First name Last name (Enter as XXX-XX-XXXX) Child tax credit Credit for other dependents Heather Dixon 222-22-2222 Daughter 1 Wages, salaries, tips, etc. Attach Form(s) W-2 b Taxable interest. Attach Sch. Bif required b Ordinary dividends. Attach Sch. Bif required 2a Tax-exempt Interest 2a 2b 3a Qualified dividends 3b Standard Deduction for- 4a IRA distributions 4a b Taxable amount 4b Single or c Pensions and annuities d Taxable amount 4d 4c Married filing separately. $12,200 Married fing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If yau checked any box under Standard Sa Social security benefits 5a Taxable amount 56 6 Capital gain or (loss). Altach Schedule Dif required. If not required, check here 7a Olher income from Schedule 1, line 9 7a b Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income 7b 8a Adjustments to income from Schedule 1, line 22 8a o Subtract line 8a from line 7b. This is your adjusted gross income 8b 9 Standard deduction or itemized deductions (from Schedule A) Deduction, see instructions. 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 1ta Add lines 9 and 10 11a Taxable income. Subtract line 11a from line 8b. If zero or less, enter-0- 11b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat, No. 11320B Form 1040 (2019) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education. < 1040 PG 1 1040 PG 2 > Required information 1040 for a couple Married Filing Jointly with two dependents. 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2019) Page 2 12a Tax (see inst.) Check if any from Form(s): O (1) 8814 (2) 4972 O (3) 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter -0- 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax 16 17 Federal income tax withheld from Forms W-2 and 1099 17 18 Other payments and refundable credits: If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. a Earned income credit (EIC) 18a b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14 e Add lines 18a through 18d. These are your total other payments and refundable credits 18d e. 18e 19 Add lines 17 and 18e. These are your total payments 19 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 20 Refund 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a b Routing number : O Checking O Savings Direct deposit? See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions Amount You Owe 23 24 Estimated tax penalty (see instructions) 24 Yes. Complete Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Third Party Designee below. No Personal identification (Other than paid preparer) Phone Designee's name no. number (PIN) Sign Here Under penalties of perjury, I declare that I have examined this retum and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. If the IRS sent you an Identity Prolection PIN, enter it here Your signature Date Your occupation Joint return? See instructions. ep a copy for your records. (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here Spouse's signature. If a joint retum, both must sign, Date Spouse's occupation (see inst.) Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if Paid Preparer Use Only 3rd Party Designee Firm's name Phone no. Self-employed Firm's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education. < 1040 PG 1 Schedule 1 > Required information 1040 for a couple Married Filing Jointly with two dependents. 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 1 of Form 1040. SCHEDULE 1 OMB No. 1545-0074 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Sequence No. 01 Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Your social security number (Enter as xXx-XX-XXXX) Name(s) shown on Form 1040 or 1040-SR Reba Dixon 111-11-1111 At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in anyvirtual currency? Part I YesO No Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received 2a 14,400 b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 3 4 Other gains or (losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 5 19,500 Farm income or (loss). Attach Schedule F 6 7 Unemployment compensation 7 Other income. List type and amount Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 33,900 Part I Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Fom 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 17 18a Alimony paid 18a b. Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Reserved for future use 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 For Paperwork Reduction Act Notice, see your tax return instructions. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 PURPOSE OTHER THAN EDUCATIONAL. O 2020 McGraw-Hill Education. < 1040 PG 2 Schedule 3> 1040 for a couple Married Filing Jointly with two dependents. 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 3 of Form 1040. SCHEDULE 3 Additional Credits and Payments OMB No. 1545-0074 (Form 1040 or 1040-SR) 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form1040 for instructions and the latest information. Internal Revenue Service Attachment Sequence No. 03 Name(s) shown on Form 1040 or 1040-SR Your social security number Reba Dixon 111-11-1111 Part I Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required 1 2 Credit for child and dependent care expenses. Attach Form 2441 2 3 Education credits from Form 8863, line 19 3 4 Retirement savings contributions credit. Attach Form 8880 4 5 Residential energy credit. Attach Form 5695 6 Other credits from Form: a 3800 b 8801 7 Add lines 1 through 6. Enter here and include on Form 1040 or 1040-SR, line 13b Part II Other Payments and Refundable Credits 8 2019 estimated tax payments and amount applied from 2018 return 8. 9 Net premium tax credit. Attach Form 8962 10 Amount paid with request for extension to file (see instructions) 10 11 Excess social security and tier 1 RRTA tax withheld 11 12 Credit for federal tax on fuels. Attach Form 4136 12 13 Credits from Form: a 2439 b Reserved c 8885 13 14 Add lines 8 through 13. Enter here and on Form 1040 or 1040-SR, line 18d 14 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G Schedule 3 (Form 1040 or 1040-SR) 2019 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education. < Schedule 1 Schedule 3