Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1982), and Shannon's is 412-34-5671 (date of birth 11/3/1984). John's W-2 contained the following information: Wages (box 1) = Federal w/H (box 2) = Social security wages (box 3) = Social security W/H (box 4) = Medicare wages (box 5) = Medicare W/H (box 6) = $ 66,346.74 $ 5,224.75 $ 66,346.74 $ 4, 113.50 $ 66,346.74 $ 962.03 Shannon did not work for the year due to a medical condition but did receive unemployment compensation of $2,711 for the year with federal withholding of $340.25. In the same year, they had the following medical costs: Shannon's prescribed diabetes medication Shannon's hospital charges Shannon's regular physician visits Shannon's eye doctor Shannon's diabetes blood testing supplies Insurance reimbursements $ 4,250 9,350 835 75 685 1,925 In addition, they had the following other expenses: State income taxes Real estate property taxes Car loan interest Personal property taxes Cash charitable contributions $ 4,950 4,170 500 765 Cash charitable contributions (made ratably throughout the year to their church) Mortgage interest expense Union dues for John Tax preparation fees 2, 135 9,970 575 175 Required: Prepare a Form 1040 with a Schedule 1 and Schedule A for the O'Banions using any appropriate worksheets. (List the names of the taxpayers in the order in which they appear in the problem. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms.) Use the appropriate Tax Tables. 1040 for a couple Married Filing Jointly with no dependents. 1040 PG 1 1040 PG 2 Schedule A Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box a child but not your dependent. Your social security number Your first name and middle initial Last name (Enter as XXX-XX-XXXX) John O'Banion 412-34-5670 Spouse's social security number If joint return, spouse's first name and middle initial Last name (Enter as xxx-xx-xxxx) Shannon O'Banion 412-34-5671 Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign 3222 Pinon Drive Check here if you, or your spouse if filing .. City, town, or post office. If you have a foreign address, also complete spaces below. Mesa, CO 81643 Foreign country name Foreign province/state/county JUHI ILIY. WIR W wy w MHG Tuu. Checking a box below will not change your tax or refund. | You Spouse Foreign postal code At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 Is blind Dependents (see instructions): ) (2) Social security number (3) Relationship to you (4) vif qualifies for (see instructions): Credit for other If more than four (1) First name Last name (Enter as XXX-XX-XXXX) - Child tax credit dependents dependents, see instructions and check here 1 66,347 2a 2b Attach Sch. B if required. 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest - 3a Qualified dividends 4a IRA distributions 3 b b Taxable interest b b Ordinary dividends b Taxable amount 3b 4a 4b 5a Pensions and annuities 5a 5b b Taxable amount b Taxable amount b 6a Social security benefits 6a 6b 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 7 8 Other income from Schedule 1, line 9 8 2,371 9 68,718 9 Add lines 1, 2b, 36, 4, 5, 6, 7, and 8. This is your total income 10 Adjustments to income: a From Schedule 1, line 22 b Charitable contributions if you take the standard deduction. See instructions c Add lines 10a and 10b. These are your total adjustments to income Standard Deduction for- Single or Married filing separately, $12,400 . Married filing 10a 10b 10c 0 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 7 8 Other income from Schedule 1, line 9 8 2,371 9 Add lines 1, 2, 3, 4, 5b, 6b, 7, and 8. This is your total income 9 68,718 0 68,718 10 Adjustments to income: Standard Deduction for- a From Schedule 1, line 22 10a Single or Married filing separately, b b Charitable contributions if you take the standard deduction. See instructions 10b $12,400 Married filing c Add lines 10a and 10b. These are your total adjustments to income 10c jointly or Qualifying 11 Subtract line 10c from line 9. This is your adjusted gross income 11 widow(er), $24,800 Head of 12 Standard deduction or itemized deductions (from Schedule A) 12 household, $18,650 . If you checked any 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 13 box under Standard Deduction, see 14 Add lines 12 and 13 14 instructions. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-0- -O- 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education. 0 0 0 68,718 Form 1040 (2020) Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2020) John O'Banion Shannon 412-34-5670 Page 2 O'Banion (1) 8814 16 Tax (see instructions). Check if any from Form(s): (2) 4972 (3) 16 17 18 0 17 Amount from Schedule 2, line 3 18 Add lines 16 and 17 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 19 20 21 Add lines 19 and 20 21 0 22 23 24 0 25a 25b 25c 25d 0 26 22 Subtract line 21 from line 18. If zero or less, enter-O- 23 Other taxes, including self-employment tax, from Schedule 2, line 10 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from: a Form(s) W-2 b Form(s) 1099 c Other forms (see instructions) ) d Add lines 25a through 25c 26 2020 estimated tax payments and amount applied from 2019 return 27 Earned income credit (EIC) 28 Additional child tax credit. Attach Schedule 8812 29 American opportunity credit from Form 8863, line 8 30 Recovery rebate credit. See instructions 31 Amount from Schedule 3, line 13 32 Add lines 27 through 31. These are your total other payments and refundable credits 33 Add lines 25d, 26, and 32. These are your total payments 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. 27 28 29 30 31 32 0 33 0 34 Refund 35a 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 34 Refund 35a 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here b Routing number c Type: d Account number Checking Direct deposit? See instructions. | Savings 36 37 36 Amount of line 34 you want applied to your 2021 estimated tax Amount You 37 Subtract line 33 from line 24. This is the amount you owe now Owe Note: Schedule H and Schedule SE filers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, For details on how to and its instructions for details. pay, see instructions. 38 Estimated tax penalty (see instructions) Third Party Do you want to allow another person to discuss this return with the IRS? See instructions Designee 38 Yes. Complete below. No Designee's Personal identification Phone no. name number (PIN) Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. If the IRS sent you an identity Your signature Date Your occupation Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Identity Protection PIN, enter it here (see inst.) Phone no Email address Preparer's name Preparer's signature Date PTIN Check if: Self-employed Paid Preparer Use Only Firm's name Phone no. Firm's address Firm's EIN Form 1040 (2020) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education. Schedule A of Form 1040. OMB No. 1545-0074 2020 Attachment Sequence No. 07 Your social security number 412-34-5670 SCHEDULE A Itemized Deductions (Form 1040) Go to www.irs.gov/ScheduleA for instructions and the latest information. Department of the Treasury Attach to Form 1040 or 1040-SR. Caution: If you are claiming a net qualified disaster loss on Form 4684, see the Internal Revenue Service (99) instructions for line 16 Name(s) shown on Form 1040 or 1040-SR John O'Banion Shannon O'Banion Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) 1 Dental 2 Enter amount from Form Expenses 2 1040 or 1040-SR, line 11 3 Multiply line 2 by 7.5% (0.075) 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box 5a 4 0 b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c 5d 0 d Add lines 5a through 5c e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount 5e 6 7 Add lines 5e and 6 7 0 7 0 Interest You Paid 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8a Caution: Your mortgage interest deduction may be limited (see instructions). 8b 8c c Points not reported to you on Form 1098. See instructions for special rules d Mortgage insurance premiums (see instructions) e Add lines 8a through 8d 8d 8e 0 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 0 14 0 10 Add lines 8e and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see 11 instructions Charity 12 Other than by cash or check. If you made any gift of $250 or more, Caution: If you see instructions. You must attach Form 8283 if over $500 12 made a gift and got 13 Carryover from prior year 13 a benefit for it, see instructions. 14 Add lines 11 through 13 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Theft Losses Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other 16 Otherfrom list in instructions. List type and amount Itemized Deductions 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 Total or 1040-SR, line 12 - Itemized Deductions 18 If you elect to itemize deductions even though they are less than your standard 15 16 17 0