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Ashley Panda lives at 1310 Meadow Lane, Wayne, OH43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill.

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Ashley Panda lives at 1310 Meadow Lane, Wayne, OH43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him, Bill spent 2020 traveling In Europe and was not a college student. He had gross income of $4,655 in 2020. Bill pald $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2020 , and many of her expenses were not reimbursed by her health insurance. Ashley owns Pands Enterprises, LuC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210 . Her 2020 Form 1040 , Schedule C for Panda Enterprises shows revenues of $315,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes of $4,820, business meal expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Ashley personally purchases heaith insurance on herself and Bill. The premiums are $23,000 per year. Ashley has an extensive stock portfollo and has prepared the following analysis: Note: Ashley recelved a Form 1099-8 from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of cornmissions. Also, the dividends are the actual dividends recelved in 2020, and these are both ordinary dividends and qualifed dividends. Ashley had $800 of interest income from State of Ohio bonds and $600 of interest income on her Wayne Savings Bank account. She paid $25,000 of alimony to her former husband (divorce finalized in June 2017). His Social Security number is 123-45-6788. Ashley Itemizes her deductions and provides the following information, which may be relevant to her return: Ashley paid $27,000 in estimated Federal income taxes, did not engage in any virtual currency transactions during the year, does not want any of her taxes to finance presidential elections, has no forelgn bank accounts or trusts, and wants any refund to be applied against her 2021 taxes. Ashley recelved the appropriate coronavirus recovery rebates (economic impact payments); related questions in proConnect Tax should be ignored. Compute Ashley's net tax payable or refund due for 2020. If you use tax forms for your computations, you will need Form 1040 and its Schedules 1, 2, 3, A, C, D, and SE, Form 8949 and the Qualifed Dividends and Capital Gain Tax Worksheet. Ashley quaifies for the 8 199A deduction for qualified business income. - Make realistic assumptions about any missing data. - If an amount box does not require an entry or the answer is zero, enter " 0 ". Note. You can daim the qualified business income deduction only if you have qualified business income from a qualfied trade or business, real estate investment trust dividends, publiog traded partnership income, or a domestic production activities deduction passed through from an agriquitural or horticuiltural cooperative. See instructions. Use this form if your taxable income, before your qualified business income deduction, is at or beiow $163,300($326,600 if married niting jointly), and you aren't a patron of an agricultural or horticuttural cooperative. \begin{tabular}{c|c|c|c} \hline \hline 1 & (a) Trade, business, or aggregation name & (b) Taxpayer identification number & (c) Qualifed business income or (loss) \\ \hline I & Panda Services, LLC & 123456777 & \\ \hline II & & & \\ \hline III & & & \\ \hline iv & & & \\ \hline v & & & \\ \hline \end{tabular} 2 Total qualifed business income or (loss). Combine lines 11 through 1v, column (c). 3 Qualified business net (loss) carryforward from the prior year. 4 Total qualified business income. Combine lines 2 and 3 . If zero or less, enter 0 - 5 Qualfled business income component. Multiply line 4 by 20%(0,20) 6 Quallfed REIT dividends and publidy traded partnership (PTP) Income or (loss) (see instructions) 7 Qualified REIT dividends and qualified PTP (loss) carryforward from the prior year. 8 Total qualifed REIT dividends and PTP income. Combine lines 6 and 7. If zero or 10 Qualified business income deduction before the income limitation. Add lines 5 and 9 11 Taxable income before qualified business income deduction . 12 Net capital gain (see instructions) .12 13 Subtract line 12 from line 11. If zero or less, enter =0=,13 15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Aso enter this amount on the applicable line of your return. 16 Total qualified business (loss) carryforward. Combine lines 2 and 3 . If greater than zero, enter 0. 17 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero

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