Chapter 6 TRP 6-3 During 2020, Jason and Vicki Hurting, who are married with two children and filing jointly, had the following tax information. Jason owns a cash-basis landscaping business, and Vicki works as a sales executive for a manufacturing business. Jason (SSN 412-34-5670) and Vicki (SSN 412-34-5671) reside at 128 Bate Street, Bright, AL 36116. Both children are under the age of 17: Jason Jr. (412-34-5672), date of birth 7/20/12 Catlin (412-34-5673), date of birth 1/08/16 Vicki's W-2 information is as follows: $ 94,000 22,000 94,000 5,828 1,363 Wages Federal withholding Social security wages Social security withholding Medicare withholding State withholding Other income: 1099-G Alabama state tax refund is taxable because $4,700 was deducted on last year's return 1099-INT First Bank of Alabama 1099-DIV IBM, Incorporated-Ordinary dividends Qualified dividends 4,700 $ 423 225 125 125 The following information is for Jason's landscaping business: Revenue Wages Payroll tax Cell phone charge Assets ($ 179 elected) $ 153,000 41,600 3,182 425 Item Truck (100% business) Mower 1 Mower 2 Equipment Date Purchased 2/05/2020 3/08/2020 3/08/2020 6/25/2020 Business Use Amount $ 28,000 12,000 3,400 1,595 Percentage 100% 100 100 100 Item Truck (100% business) Mower 1 Mower 2 Equipment Date Purchased 2/05/2020 3/08/2020 3/08/2020 6/25/2020 Business Use Amount $ 28,000 12,000 3,400 1,595 Percentage 100% 100 100 100 The truck was over 6,000 lb. The Hurtings had the following itemized deductions: State income tax withholding (from above) Real estate tax Personal property tax Mortgage interest Charitable contributions $ 4,700 2,100 425 8,300 2,400 The Hurtings made four federal estimated payments of $2,500 each on their due dates. Required: Prepare Form 1040 plus appropriate schedules for the Hurtings for 2020. Use the appropriate Tax Rate Schedules. (List the names of the taxpayers in the order in which they appear in the problem. Enter the required information in the Dependents section in a chronological order of "Dependent's social security number". Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole dollar. Do not skip rows, while entering Dependents section in Form 1040 PG1.) 1040 for a couple Married Filing Jointly with two dependents. 1040 PG 1 1040 PG 2 Schedule 1 Schedule 2 Schedule C PG 1 Schedule C PG 2 Schedule SE Form 4562 Form 8995 Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 Department of the Treasury Internal Revenue Service (99) U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW)
