Albert Gaytor and his wife Allison are married and file a joint return for 2020. The Gaytors live at 12340 Cocoshell Road, Coral Gables, FL 33134. Captain Gaytor is a charter fishing boat captain but took 6 months off from his job in 2020 to train and study for his Masters Captains License. In 2020, Albert received a Form W-2 from his employer, Coconut Grove Fishing Charters, Inc.:

The Gaytors have a 17-year-old son, Crocker, who is a full-time freshman at Brickell State University. The Gaytors also have an 18-year-old daughter, Cayman, who is a part-time student at Dade County Community College (DCCC). Cayman is married to Sean Slacker, who is 19 years old and a part-time student at DCCC. Sean and Cayman have a 1-year-old child, Wanda Slacker (Social Security number 648-99-4306). Sean, Cayman, and Wanda all live in an apartment up the street from Albert and Allison during the entire current calen-dar year. Sean and Cayman both work for Seans wealthy grandfather as apprentices in his business. Their wages for the year were a combined $50,000, which allowed them to pay all the personal expenses for themselves and their daughter. The Gaytors received a $2,900 EIP in 2020.

Albert and Allison have a savings account and received the following Form 1099-INT for 2020:

Required: Use a computer software package such as Intuit ProConnect to complete Form 1040 for Albert and Allison Gaytor for 2020. Be sure to save your data input files since this case will be expanded with more tax information in later chapters. Make assumptions re-garding any information not given.

Employee's security ruber 266-51-1966 b Employer identification number En 60-3456789 Employer's name, address, and Poode Coconut Grove Fishing Charters, Inc. 2432 Bay Blvd. Coconut Grove, FL 33133 Safe, accurate, Vat the IRS wat GMA No. 1548.000 FAST! Une e file www.ragonitele 1 Wagother Corporation 2 Federal income tax withdd 67,254.70 5,588.17 3300 Securty was 4300 security and 67,254.70 4,169.79 5 Medicare wages and 1ps G Medicare tax welheid 67,254.70 975.19 7 Social Security tips 8 Alocured tips Combol rumber 10 Dependent care benefs Lame Sutt 11 No qualified plans 12 Sentrations for box 12 Employee's fratrumendinti Albert T. Gaytor 12340 Cocoshell Road Coral Gables, FL 33134 13 12 14 Other 126 12d Employee's address and ZP code 15 Sure Employer's state ID number FLI. 16 Stewoges, tips, etc. 17 Sute roome tax 18 Local wag sa 19 Local incone B 20 Locale 2020 Department of the Trowy-Internal Revenue Service Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Pevenue Service Name Albert T. Gaytor Allison A. Gaytor Crocker Gaytor Cayman Slacker Sean Slacker Social Security Number 266-51-1966 266-34-1967 261-55-1212 261-11-4444 344-23-5656 Date of Birth 09/22/1971 07/01/1972 12/21/2003 03/13/2002 05/01/2001 OMB No 1545-0112 CORRECTED (if checked) PAYERS name, street address, city or town, state or province, country, ZIP Payer's RTN (optional or foreign postal code and telephone no. Vizcaya National Bank 9871 Coral Way 1 Interest income Miami, FL 33134 348.19 $ 2 Early withdrawal peraly 2020 Interest Income Forn 1099-INT Copy B PAYERS TIN 60-7654321 RECIPIENTS TIN 266-51-1966 Is 3 Interest on U.S. Savings Bonds and Treas. obligations For Recipient nerest RECIPIENTS name 4 Federal Income tax withheld 5 Investment expenses This is important tax Albert T. Gaytor s Is information and is being furnished to the 6 Foreign tax paid 7 Foreign country or U.S. Posession IRS. If you are Street address (including apt, no.) $ required to file a 8 Tax-exempt interest 12340 Cocoshell Road Spected private actity bond retum, a negligence penalty or other sanction may be City or town, state or province, country, and ZIP of foreign postal code $ Is imposed on you it 10 Market discount 11 Bond premium this income is Coral Gables, FL 33134 taxable and the IRS determines that it has FATCA fling $ ls not been reported. requirement 12 Bord premium on Treasury obligations 13 Bond premium on tax caurplbond S Is Account number (see instructions) 14 Taxexempt and tax credt 15 Slate 16 State identification na 17 State tax withheld bond CUSP no Is Form 1099-INT (keep for your records) www.lrs.gov.Form1099INT Department of the Treasury - Internal Revenue Service Employee's security ruber 266-51-1966 b Employer identification number En 60-3456789 Employer's name, address, and Poode Coconut Grove Fishing Charters, Inc. 2432 Bay Blvd. Coconut Grove, FL 33133 Safe, accurate, Vat the IRS wat GMA No. 1548.000 FAST! Une e file www.ragonitele 1 Wagother Corporation 2 Federal income tax withdd 67,254.70 5,588.17 3300 Securty was 4300 security and 67,254.70 4,169.79 5 Medicare wages and 1ps G Medicare tax welheid 67,254.70 975.19 7 Social Security tips 8 Alocured tips Combol rumber 10 Dependent care benefs Lame Sutt 11 No qualified plans 12 Sentrations for box 12 Employee's fratrumendinti Albert T. Gaytor 12340 Cocoshell Road Coral Gables, FL 33134 13 12 14 Other 126 12d Employee's address and ZP code 15 Sure Employer's state ID number FLI. 16 Stewoges, tips, etc. 17 Sute roome tax 18 Local wag sa 19 Local incone B 20 Locale 2020 Department of the Trowy-Internal Revenue Service Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Pevenue Service Name Albert T. Gaytor Allison A. Gaytor Crocker Gaytor Cayman Slacker Sean Slacker Social Security Number 266-51-1966 266-34-1967 261-55-1212 261-11-4444 344-23-5656 Date of Birth 09/22/1971 07/01/1972 12/21/2003 03/13/2002 05/01/2001 OMB No 1545-0112 CORRECTED (if checked) PAYERS name, street address, city or town, state or province, country, ZIP Payer's RTN (optional or foreign postal code and telephone no. Vizcaya National Bank 9871 Coral Way 1 Interest income Miami, FL 33134 348.19 $ 2 Early withdrawal peraly 2020 Interest Income Forn 1099-INT Copy B PAYERS TIN 60-7654321 RECIPIENTS TIN 266-51-1966 Is 3 Interest on U.S. Savings Bonds and Treas. obligations For Recipient nerest RECIPIENTS name 4 Federal Income tax withheld 5 Investment expenses This is important tax Albert T. Gaytor s Is information and is being furnished to the 6 Foreign tax paid 7 Foreign country or U.S. Posession IRS. If you are Street address (including apt, no.) $ required to file a 8 Tax-exempt interest 12340 Cocoshell Road Spected private actity bond retum, a negligence penalty or other sanction may be City or town, state or province, country, and ZIP of foreign postal code $ Is imposed on you it 10 Market discount 11 Bond premium this income is Coral Gables, FL 33134 taxable and the IRS determines that it has FATCA fling $ ls not been reported. requirement 12 Bord premium on Treasury obligations 13 Bond premium on tax caurplbond S Is Account number (see instructions) 14 Taxexempt and tax credt 15 Slate 16 State identification na 17 State tax withheld bond CUSP no Is Form 1099-INT (keep for your records) www.lrs.gov.Form1099INT Department of the Treasury - Internal Revenue Service