ALL I NEED IS THE SCHEDULE 1 FORM
Comprehensive Problem 3-2B Christopher Crosphit (birthdate April 28, 1978) owns and operates a health club called "Catawba Fitness". The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190 and the EIN is 12-3456789. Chris had the following income and expenses from the health club: Income $216,000 Expenses: Business insurance 3,600 Office supplies 3,300 Payroll 98,900 Payroll taxes 9,112 Travel 2,420 Equipment & club maintenance 10,720 Cleaning service 8,775 Equipment rent 22,820 Equipment & club maintenance 10,720 Cleaning service 8,775 Equipment rent 22,820 Utilities (electric, water, gas) 13,975 Telephone 2,778 Rent 32,600 Advertising 5,200 780 Special workout clothing and boxing gloves Subscription to Biceps Monthly magazine 120 Educational seminar on weight training 770 Other expenses 1,830 The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. Chris has the following interest income for the year: Instructions Chris has the following interest income for the year: $13,000 Upper Piedmont Savings Bank savings account Morgan Bank bond portfolio interest 12,400 (You may assume that the bond portfolio interest is from corporate bonds.) Chris also dabbles as a broker of antique and rare books. He acquires and scavenges for books and then sells them on the Internet. He generated $4,000 of sales in 2020 and the books he sold cost $3,500. He also incurred $7,600 in travel and other expenses related to this activity. Chris has never turned a profit in the book business, but he loves books and book selling and does not mind losing money doing it. Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and Chris files his tax return as head of household. Arnold (birthdate July 1, 2002) is a high school student; he does not qualify for the child tax credit but qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities. Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2020. Chris received a $1,700 Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and Chris files his tax return as head of household. Arnold (birthdate July 1, 2002) is a high school student; he does not qualify for the child tax credit but does qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities. Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2020. Chris received a $1,700 EIP in 2020. Required: Complete Form 1040 for Chris and the other schedules and forms provided. Assume the taxpayer had full-year health coverage and does not want to contribute to the presidential election campaign. Do not complete Form 4562 (depreciation). Make realistic assumptions about any missing data. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers. If an amount box does not require an entry or the answer is zero, enter "0". Round any percentages to two decimal places. Round any dollar amounts to the nearest dollar. Complete Schedule 1 for Chris. OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Attachment Department of the Treasury Internal Revenue Service Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Christopher Crosphit Your social security number 565-12-6789 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received ... 2a 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 Schedule 1 5 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F. 6 6 7 Unemployment compensation . 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 9 Part II 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 Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 . 13 Comprehensive Problem 3-2B Christopher Crosphit (birthdate April 28, 1978) owns and operates a health club called "Catawba Fitness". The business is located at 4321 New Cut Road, Spartanburg, SC 29303. The principal business code is 812190 and the EIN is 12-3456789. Chris had the following income and expenses from the health club: Income $216,000 Expenses: Business insurance 3,600 Office supplies 3,300 Payroll 98,900 Payroll taxes 9,112 Travel 2,420 Equipment & club maintenance 10,720 Cleaning service 8,775 Equipment rent 22,820 Equipment & club maintenance 10,720 Cleaning service 8,775 Equipment rent 22,820 Utilities (electric, water, gas) 13,975 Telephone 2,778 Rent 32,600 Advertising 5,200 780 Special workout clothing and boxing gloves Subscription to Biceps Monthly magazine 120 Educational seminar on weight training 770 Other expenses 1,830 The business uses the cash method of accounting and has no accounts receivable or inventory held for resale. Chris has the following interest income for the year: Instructions Chris has the following interest income for the year: $13,000 Upper Piedmont Savings Bank savings account Morgan Bank bond portfolio interest 12,400 (You may assume that the bond portfolio interest is from corporate bonds.) Chris also dabbles as a broker of antique and rare books. He acquires and scavenges for books and then sells them on the Internet. He generated $4,000 of sales in 2020 and the books he sold cost $3,500. He also incurred $7,600 in travel and other expenses related to this activity. Chris has never turned a profit in the book business, but he loves books and book selling and does not mind losing money doing it. Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and Chris files his tax return as head of household. Arnold (birthdate July 1, 2002) is a high school student; he does not qualify for the child tax credit but qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities. Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2020. Chris received a $1,700 Chris has been a widower for 10 years with a dependent son, Arnold (Social Security number 276-23-3954), and Chris files his tax return as head of household. Arnold (birthdate July 1, 2002) is a high school student; he does not qualify for the child tax credit but does qualify for the $500 other dependent credit. They live next door to the health club at 4323 New Cut Road. Chris does all the administrative work for the health club out of an office in his home. The room is 171 square feet and the house has a total of 1,800 square feet. Chris pays $20,000 per year in rent and $4,000 in utilities. Chris' Social Security number is 565-12-6789. He made an estimated tax payment to the IRS of $500 on April 15, 2020. Chris received a $1,700 EIP in 2020. Required: Complete Form 1040 for Chris and the other schedules and forms provided. Assume the taxpayer had full-year health coverage and does not want to contribute to the presidential election campaign. Do not complete Form 4562 (depreciation). Make realistic assumptions about any missing data. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions or other amounts as negative numbers. If an amount box does not require an entry or the answer is zero, enter "0". Round any percentages to two decimal places. Round any dollar amounts to the nearest dollar. Complete Schedule 1 for Chris. OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Attachment Department of the Treasury Internal Revenue Service Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Christopher Crosphit Your social security number 565-12-6789 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received ... 2a 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 Schedule 1 5 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F. 6 6 7 Unemployment compensation . 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 9 Part II 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 Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 . 13
