Carl Baker is another client of ABC Tax Firm and is a 63-year old widower that has provided the following information to you. As the tax preparer, interpret the information provided and construct Carl's 20XX Federal Tax Return.

Carl had income for 20XX as follows:

Pension from former employer = $39,850

Interest income from Bean Bank = $5,500

Interest income on City of Bean bonds = $4,500

Dividends received from Costco stock held for over one year = $2,000

Social Security benefits = $14,000

Rental income on house = $9,000

Carl has an annuity which cost $46,800.He was expected to receive a total of 260 monthly payments of $450. So far, Carl has received 22 payments so far.

Carl's daughter, Sasha (who is 40 years old), borrowed $60,000 from Carl on January 5, 20XX and used the proceeds to form a new business. Sasha is living with Carl until the business is money/profitable. Except for housing, Sasha provides her own support from her business and $1,600 in dividends on stocks she received/inherited from her mother.

Other relevant information:

Utilities = $2,900

Maintenance costs - $2,000

Depreciation = $3,000

Real estate taxes = $850

Insurance = $800

State income taxes paid = $$3,600

Country personal property taxes paid = $2,200

Payments on estimated 20XX FIT = $6,000

Charitable contributions of cash to Bean Church = $7,500

Federal interest rate 6%

Sales taxes paid = $1,012