Alice Johnson, Social Security number 22-23-3334, 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 the current year:

• 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 form her mother. She also received $4,000 of cash dividends from the Ace Corporation. The dividends are 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. They divorced on August 1, 2014.
• 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 qualified dividends and capital gain tax worksheet below:

5. } 9. Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Keep for Your Records Before you begin: See the earlier instructions for line 16 to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1040 or 1040-SR through line 15. If you don't have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7 1. Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet ..... 1. 2. Enter the amount from Form 1040 or 1040-SR. line 3a" 2. 3. Are you filing Schedule D?* Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss, enter -0- 3. No. Enter the amount from Form 1040 or 1040-SR, line 7. 4. Add lines 2 and 3 4. 5. Subtract line 4 from line 1. If zero or less, enter-O- 6. Enter: $40,400 if single or married filing separately, $80,800 if married filing jointly or qualifying widow(er), 6. $54,100 if head of household. 7. Enter the smaller of line 1 or line 6 7. 8. Enter the smaller of line 5 or line 7 8. Subtract line 8 from line 7. This amount is taxed at 0% 9. 10. Enter the smaller of line 1 or line 4 10. 11. Enter the amount from line 9 11. 12. Subtract line 11 from line 10 12. 13. Enter: $445,850 if single, $250,800 if married filing separately, 13. $501,600 if married filing jointly or qualifying widow(er), $473,750 if head of household. 14. Enter the smaller of line 1 or line 13 14. 15. Add lines 5 and 9 9 15. 16. Subtract line 15 from line 14. If zero or less, enter -0- 17. Enter the smaller of line 12 or line 16 18. Multiply line 17 by 15% (0.15) 18. 19. Add lines 9 and 17 20. Subtract line 19 from line 10 20. 21. Multiply line 20 by 20% (0.20) 21. 22. Figure the tax on the amount on line 5. If the amount on line 5 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation Worksheet 22. 23. Add lines 18, 21, and 22 23. 24. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet ............................... 24. 25. Tax on all taxable income. Enter the smaller of line 23 or 24. Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 25. * If you are filing Form 2555, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. } 16. 17. 19