Question
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,
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.
Rick and Cindy Davis are married and file a joint return. They live at 3223 Taccone Ave., Apt. 37, Medford, MA 02155. Rick is an elementary school teacher in the Medford Public School system and Cindy is currently a homemaker after losing her job in late 2019. Cindys social security number is 412-34-5671 (date of birth 10/11/1981) and Ricks is 412-34-5670 (date of birth 3/19/1979).
Ricks W-2 contained the following information:
Wages (box 1) = | $ 70,245.55 |
---|---|
Federal W/H (box 2) = | $ 5,924.43 |
Social security wages (box 3) = | $ 70,245.55 |
Social security W/H (box 4) = | $ 4,355.22 |
Medicare wages (box 5) = | $ 70,245.55 |
Medicare W/H (box 6) = | $ 1,018.56 |
Rick and Cindy have interest income of $237 from a savings account at Boston State Bank.
Cindy also owns stock in Microsoft. Cindy received $265 in qualified dividends from Microsoft in 2020. Rick was divorced in 2014 and pays his ex-wife (Mary Tortelli) alimony. Their original divorce decree, which remains unchanged, dictates that Rick pay Mary $525 per month in alimony for 10 years. Marys social security number is 412-34-5675.
Cindy received unemployment compensation of $3,800 during 2020 and no taxes were withheld from the payments. Additionally, Rick won a $1,100 prize in a nationally sponsored fantasy football league and no income taxes were withheld from his winnings. Rick also spent $355 on supplies for his classroom for which he was not reimbursed.
Required: Prepare a Form 1040 and Schedule 1 for Rick and Cindy Davis. Rick and Cindy did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during 2020. (List the names of the taxpayers in the order in which they appear in the problem. Do not round intermediate computations. 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.
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