Question
Alice Johnson, Social Security number 222-23-3334, is a single taxpayer and is employed as a secretary by State University of Florida. She has the following
Alice Johnson, Social Security number 222-23-3334, is a single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her income tax return for 2019:
Received a $30,000 salary from her employer, who withheld $4,200 federal income tax.
Received a gift of 1,000 shares of Ace Corporation stock with a $100,000 FMV from her mother. She also received $4,000 of cash dividends from the Ace Corporation. The dividends are not qualified dividends.
Received $1,000 of interest income on bonds issued by the City of Tampa.
Received a regular stock dividend (nontaxable under Sec. 305) of 50 shares of Ace Corporation stock with a $5,000 FMV.
Alices employer paid $2,000 of medical and health insurance premiums on her behalf.
Received $13,000 alimony from her ex-husband.
State University provided $60,000 of group term life insurance. Alice is 42 years old and is not a key employee. The table in the text is applicable.
Received a $1,000 cash award from her employer for being designated the Secretary of the Year.
Total itemized deductions are $10,000.
Complete Form 1040 and accompanying schedules for Alice Johnsons federal income tax return for 2019. (Schedule 1, Schedule B, 1040 form)
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