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. In July 2020 Kirk and Rasheeda Wallace and their two dependent children, who are both over 17, moved from Chicago to Albuquerque, New Mexico, a distance of 1,327 miles, which they drove in their own car. The childrens names are Marcus and Tara and both will be attending the University of New Mexico in the fall, Marcus as a freshman and Tara as a junior. The move was a result of a civilian job transfer for Kirk. The distance from their old home to Kirks old office was 30 miles. Rasheeda quit her job in Chicago and decided to perform volunteer work for a year before seeking further employment. Their new home is located at 7432 Desert Springs Way, Albuquerque, NM 87101. Kirk, but not Rasheeda, was employed in the new location throughout the year. Kirks social security number is 412-34-5670 (date of birth 6/12/1977), Rasheedas is 412-34-5671 (date of birth 8/12/1979), Marcuss is 412-34-5672 (date of birth 2/17/2003), and Taras is 412-34-5673 (date of birth 9/14/2001). Kirk is a civil engineer for a national firm; his W-2 contained the following information: Wages (box 1) = $ 110,220.45 Federal W/H (box 2) = $ 10,115.51 Social security wages (box 3) = $ 110,220.45 Social security W/H (box 4) = $ 6,833.67 Medicare wages (box 5) = $ 110,220.45 Medicare W/H (box 6) = $ 1,598.20 In addition, both he and Rasheeda received Forms 1098-E from the federal student loan program. Kirk had student loan interest of $1,050, and Rasheeda had student loan interest of $750. The children are both eligible for the Credit for Other Dependents and as a result $1,000 will go on line 19 of pg. 2 of Form 1040. Required: Prepare a Form 1040 and a Schedule 1 for Kirk and Rasheeda. If manually preparing the return, the Student Loan Interest Deduction worksheet can be found in IRS Publication 970, Tax Benefits for Education. Kirk and Rasheed 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 skip rows when entering data in the Dependents section. 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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