Beverly and Ken Hair have been married for 3 years. Beverly works as an accountant at Cypress Corporation. Ken is a full-time student at Southwest Missouri State University (SMSU) and also works part-time during the summer at Cypress Corp. Ken's birthdate is January 12, 1994 and Beverly's birthdate is November 4, 1996. Beverly and Ken each received a W-2 form from Cypress Corporation (see separate tab).
The Hairs have interest income of $956 on City of St. Louis bonds. Beverly and Ken also received a Form 1099-INT from Boatman's Bank and a 1099-DIV form from Green Corporation (see separate tab).
Ken is an excellent student at SMSU. He was given a $1,750 scholarship by the university to help pay educational expenses. The scholarship funds were used by Ken for tuition and books.
Last year, Beverly was laid off from her former job and was unemployed during January 2020. She was paid $1,847 of unemployment compensation until she started work with her current employer, Cypress Corporation.
Ken has a 4-year-old son, Robert R. Hair, from a prior marriage that ended in divorce in 2015. During 2020, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife.
During 2020, Ken's aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the Boatman's Bank savings account.
Beverly and Ken received a $2,400 EIP in 2020.
Required: Complete the Hairs' Form 1040
Beverly and Ken's W-2 Forms b Employer identification number (EIN) 31-1238967 C Employer's name, address, and ZIP code Cypress Corp. 1234 E. Chestnut Parkway Springfield, MO 65802 1 Wages, tips, other compensation 51,100.00 3 Social security wages 51,100.00 5 Medicare wages and tips 51,100.00 2 Federal income tax withheld 4,610.00 4 Social security tax withheld 3,168.20 6 Medicare tax withheld 740.95 7 Social security tips 8 Allocated tips d Control number 10 Dependent care benefits Last name Suff. 11 Nonqualified plans e Employee's first name and initial Beverly Hair 12a See instructions for box 12 Beverly and Ken's W-2 Forms f Employee's address and ZIP code 17 State income 19 Local income 20 Locality name 15 State Employer's state ID number MO 16 State Wages, tips, etc. 51,100.00 18 Local wages, tips, etc. tax tax 690.00 Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax Statement 2020 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Beverly and Ken's W-2 Forms 2 b Employer identification number (EIN) 31-1238967 1 Wages, tips, other compensation 2,750.00 Federal income tax withheld 0.00 4 3 Social security wages 2,750.00 Social security tax withheld 170.50 c Employer's name, address, and ZIP code Cypress Corp. 1234 E. Chestnut Parkway Springfield, MO 65802 6 5 Medicare wages and tips 2,750.00 Medicare tax withheld 39.88 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Beverly and Ken's W-2 Forms x f Employee's address and ZIP code 20 Locality name 15 State Employer's state ID number MO 16 State wages, tips, etc. 2,750.00 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 0.00 Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax Statement 2020 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Beverly and Ken's Form 1099-INT and Form 1099-DIV Beverly and Ken received the following Form 1099-INT and Form 1099-DIV: CORRECTED (if checked) Payer's RTN (optional) OMB No. 1545-0112 PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. 2020 Interest Income 1 Interest income Boatman's Bank 300 City Avenue Springfield, MO 63126 $ 656.62 Form 1099-INT 2 Early withdrawal penalty PAYER'S TIN RECIPIENT'S TIN $ Beverly and Ken's Form 1099-INT and Form 1099-DIV CORRECTED (if checked) OMB No. 1545-0110 PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. la Total ordinary dividends Dividends $ 302.00 2020 and 1b Qualified dividends Green Corporation 900 South Orange Ave. Springfield, MO 63126 Distributions $ 302.00 Form 1099-DIV 2a Total capital gain distr. 2b Unrecap. Sec. 1250 gain $ Form 1040 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 53,850 Attach 2a Tax-exempt interest .. 2a 956 b Taxable interest. 2b 657 Sch. B if required. 3b 302 4b 3a Qualified dividends ... 302 b Ordinary dividends 4a IRA distributions ..... 4a b Taxable amount. 5a Pensions and annuities 5a d Taxable amount .. 6a Social security benefits b Taxable amount .. 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 5b 6b 7 Standard Deduction for- Single or Married filing separately, $12,400 8 Other income from Schedule 1, line 9.. 8 1,847 9 Add lines 1, 2b, 3b, 46, 5b, 6b, 7, and 8. This is your total income... 9 56,656 11 Subtract line 10c from line 9. This is your adjusted gross income 11 56,656 Form 1040 $18,650 If you checked any box under Standard Deduction, see instructions. 12 Standard deduction or itemized deductions (from Schedule A) 12 24,800 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A. 13 14 Add lines 12 and 13 14 24,800 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- 15 31,856 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2020) Form 1040 (2020) Page 2 16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 30 16 3,430 x Form 1040 16 Tax (see instructions). Check if any from Form(s): 1 8814 20 4972 30 16 3,430 X 17 Amount from Schedule 2, line 3 17 18 Add lines 16 and 17 18 19 Child tax credit or credit for other dependents 19 20 Amount from Schedule 3, line 7. 20 21 Add lines 19 and 20 21 22 Subtract line 21 from line 18. If zero or less, enter -0- 22 23 Other taxes, including self-employment tax, from Schedule 2, line 10 23 24 Add lines 22 and 23. This is your total tax ... 24 E Codoral income tax withhold fram
