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. Jason Ready attended the University of San Diego during 20162020 under the Army ROTC program. Excluding the school expenses covered by his ROTC scholarship, he incurred additional school expenses of $15,000 in total for his education, and $2,250 of that amount was incurred in 2020 for his last semester. To finance these expenses, he borrowed $10,500 through a federal student loan program and borrowed another $4,500 from SoCal Credit Union for educational purposes. After graduation, he received his officers commission and was ordered to report to the Military Entrance Processing Station in Portland, Oregon, for duty. He lives off base at 4560 Ranch Drive, Portland, OR 97035. He is single and his social security number is 412-34-5670 (date of birth 7/10/1998). His W-2 contained the following information:
Wages (box 1) = $ 67,533.05
Federal W/H (box 2) = $ 8,204.45
Social security wages (box 3) = $ 67,533.05
Social security W/H (box 4) = $ 4,187.05
Medicare wages (box 5) = $ 67,533.05
Medicare W/H (box 6) = $ 979.23
In moving to Portland, he incurred the following unreimbursed moving expenses: $475 in gasoline. $295 for renting a truck from IGOTYA rentals. $135 in food. $450 for motel lodging on the way to Portland. He also received two Forms 1098-E. One was from the federal student loan program, which showed $550 of student loan interest; the other was from SoCal Credit Union and showed $160.40 of student loan interest. Required: Prepare a Form 1040, a Form 3903, and Schedule 1. Jason did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during 2020. (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.
1 67,533 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest 2b Attach Sch. B if required. 3a Qualified dividends b Ordinary dividends 3b 4a IRA distributions 4a b Taxable amount 4b 5a Pensions and annuities 5a b Taxable amount 5b 6a Social security benefits 6a b Taxable amount 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 9 Add lines 1, 2b, 3b, 4b, 5b, 66, 7, and 8. This is your total income 9 67,533 10a . 10b 10c 0 10 Adjustments to income: Standard a From Schedule 1, line 22 Deduction for Single or Married filing separately, b Charitable contributions if you take the standard deduction. See instructions $12,400 Married filing c Add lines 10a and 10b. These are your total adjustments to income jointly or Qualifying 11 Subtract line 10c from line 9. This is your adjusted gross income widow(er), $24,800 Head of 12 Standard deduction or itemized deductions (from Schedule A) household, $18,650 If you checked any 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A box under Standard Deduction, see 14 Add lines 12 and 13 instructions. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- 11 67,533 12 12,400 13 14 12,400 15 55,133 Car Dinlanura Dinamu Am and Danamua L Dadration And Motina na navata in tuuradiana Cat No 112D Carminan 1000ni. Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2020) Ready Page Jason 16 Tax (see instructions). Check if any from Form(s): 17 Amount from Schedule 2, line 3 412-34-5670 (1) 8814 D (2) 4972 (3) 16 17 18 Add lines 16 and 17 18 19 20 21 C 22 23 24 25a 25b 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 21 Add lines 19 and 20 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 25c 25d 26 27 - If you have a qualifying child, attach Sch. EIC. If you have hontaxable combat pay, see nstructions 28 29 30 31 32 C > 33 33 0 34 35a Savings 36 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 Refund 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here Direct deposit? b Routing number c Type: Checking See instructions. d Account number 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 retum with the IRS? See instructions Designee 37 38 Yes. Complete below. DO No Personal identification Designee's name Phone no. 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 Fimm's name Phone no. OMB No. 1545-0074 Form 3903 Moving Expenses 2020 Department of the Treasury Go to www.irs.gov/Form3903 for instructions and the latest information. nternal Revenue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Sequence No. 170 Name(s) shown on return Your social security number Jason Ready 412-34-5670 Before you begin: You can deduct moving expenses only if you are a Member of the Armed Forces on active duty and, due to a military order, you, your spouse, or your dependents move because of a permanent change of station. Check here to certify that you meet these requirements. See the instructions Transportation and storage of household goods and personal effects (see instructions) 1 Travel (including lodging) from your old home to your new home (see instructions). Do not include the cost of meals 2 Add lines 1 and 2 3 Enter the total amount the government paid you for the expenses listed on lines 1 and 2 that is not included in box 1 of your Form W-2 (wages). This amount hould be shown in box 12 of your Form W-2 with code P 4 Is line 3 more than line 4? I No. You cannot deduct your moving expenses. If line 3 is less than line 4, subtract line 3 from line 4 and include the result on Form 1040 or 1040-SR, line 1; or Form 1040-NR, line 1a. Yes. Subtract line 4 from line 3. Enter the result here and on Schedule 1 (Form 1040), line 13. This is your moving expense deduction For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 12490K 5 Form 3903 (2020) OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Attachment Sequence No. 01 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. . Name(s) shown on Form 1040 or 1040-SR Jason Ready Parti Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes Your social security number 412-34-5670 1 2a Alimony received 2a b 3 3 4 Date of original divorce or separation agreement (see instructions) Business income or loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F 4 5 5 6 6 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 9 0 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Adjustments to Income Part II 10 Educator expenses 10 11 11 12 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE 13 13 14 14 1 67,533 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest 2b Attach Sch. B if required. 3a Qualified dividends b Ordinary dividends 3b 4a IRA distributions 4a b Taxable amount 4b 5a Pensions and annuities 5a b Taxable amount 5b 6a Social security benefits 6a b Taxable amount 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 9 Add lines 1, 2b, 3b, 4b, 5b, 66, 7, and 8. This is your total income 9 67,533 10a . 10b 10c 0 10 Adjustments to income: Standard a From Schedule 1, line 22 Deduction for Single or Married filing separately, b Charitable contributions if you take the standard deduction. See instructions $12,400 Married filing c Add lines 10a and 10b. These are your total adjustments to income jointly or Qualifying 11 Subtract line 10c from line 9. This is your adjusted gross income widow(er), $24,800 Head of 12 Standard deduction or itemized deductions (from Schedule A) household, $18,650 If you checked any 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A box under Standard Deduction, see 14 Add lines 12 and 13 instructions. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- 11 67,533 12 12,400 13 14 12,400 15 55,133 Car Dinlanura Dinamu Am and Danamua L Dadration And Motina na navata in tuuradiana Cat No 112D Carminan 1000ni. Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2020) Ready Page Jason 16 Tax (see instructions). Check if any from Form(s): 17 Amount from Schedule 2, line 3 412-34-5670 (1) 8814 D (2) 4972 (3) 16 17 18 Add lines 16 and 17 18 19 20 21 C 22 23 24 25a 25b 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 21 Add lines 19 and 20 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 25c 25d 26 27 - If you have a qualifying child, attach Sch. EIC. If you have hontaxable combat pay, see nstructions 28 29 30 31 32 C > 33 33 0 34 35a Savings 36 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 Refund 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here Direct deposit? b Routing number c Type: Checking See instructions. d Account number 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 retum with the IRS? See instructions Designee 37 38 Yes. Complete below. DO No Personal identification Designee's name Phone no. 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 Fimm's name Phone no. OMB No. 1545-0074 Form 3903 Moving Expenses 2020 Department of the Treasury Go to www.irs.gov/Form3903 for instructions and the latest information. nternal Revenue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Sequence No. 170 Name(s) shown on return Your social security number Jason Ready 412-34-5670 Before you begin: You can deduct moving expenses only if you are a Member of the Armed Forces on active duty and, due to a military order, you, your spouse, or your dependents move because of a permanent change of station. Check here to certify that you meet these requirements. See the instructions Transportation and storage of household goods and personal effects (see instructions) 1 Travel (including lodging) from your old home to your new home (see instructions). Do not include the cost of meals 2 Add lines 1 and 2 3 Enter the total amount the government paid you for the expenses listed on lines 1 and 2 that is not included in box 1 of your Form W-2 (wages). This amount hould be shown in box 12 of your Form W-2 with code P 4 Is line 3 more than line 4? I No. You cannot deduct your moving expenses. If line 3 is less than line 4, subtract line 3 from line 4 and include the result on Form 1040 or 1040-SR, line 1; or Form 1040-NR, line 1a. Yes. Subtract line 4 from line 3. Enter the result here and on Schedule 1 (Form 1040), line 13. This is your moving expense deduction For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 12490K 5 Form 3903 (2020) OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Attachment Sequence No. 01 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. . Name(s) shown on Form 1040 or 1040-SR Jason Ready Parti Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes Your social security number 412-34-5670 1 2a Alimony received 2a b 3 3 4 Date of original divorce or separation agreement (see instructions) Business income or loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F 4 5 5 6 6 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 9 0 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Adjustments to Income Part II 10 Educator expenses 10 11 11 12 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE 13 13 14 14
