Chd 5-58 GROUP 4: COMPREHENSIVE PROBLEMS Visit the IRS website at www.irs.gov/efile OMB No. 1545-0008 FAST! Use a Employee's social security number 555-94-9358 b Employer identification number (EIN) 31-1459656 c Employer's name, address, and ZIP code Lucky Ace Casino 700 N. Sierra Street Reno, NV 89503 Safe, accurate, 1RS rse - file 1 Wages, tips, other compensation 192,000.00 3 Social security wages 137,700.00 5 Medicare wages and tips 200,000.00 7 Social security tips 2 Federal income tax withheld 24,500.00 4 Social security tax withheld 8,537.40 6 Medicare tax withheld 2,900.00 8 Allocated tips 9 10 Dependent care benefits d Control number Suff. 11 Nonqualified plans Last name 13 Statutory Retirement employee Third-party sick pay X e Employee's first name and initial James Dangell 911 Parr Blvd. Reno, NV 89512 12a See instructions for box 12 D 8,000.00 12b W 1,200.00 12c 8 12d 8 14 Other 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name f Employee's address and ZIP code 15 State Employer's state ID number nul. Department of the Treasury-Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 1. James Dangell (birthdate August 2, 1976) is a single taxpayer. Jim's earnings and with- holdings as the manager of a local casino for 2020 are reported on his Form W-2: Fund-raising dinner for the Reno Auto Museum Form W-2 Wage and Tax Statement 2020 Jim's other income includes interest on a savings account at Nevada National Bank of $13,700. Jim pays his ex-spouse, Sarah McLoughlin, $3,900 per month in accordance with their February 12, 2019 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,800 per month. His ex- wife's Social Security number is 554-44-5555. In 2020, Jim purchased a new car and so he kept track of his sales tax receipts dur- ing the year. His actual sales tax paid is $3,650, which exceeds the estimated amount per the IRS tables. Jim participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $75 in 2020. During the year, Jim paid the following amounts (all of which can be 4,300 2,988 2,000 900 0 1,350 3,100 is bas 250 100 $1,760 900 substantiated): Credit card interest Auto loan interest Auto insurance Property taxes on personal residence Contributions to HSA Income tax preparation fee Charitable contributions (all cash): Boy Scouts St. Matthews Church Nevada Democratic Party upe (value of dinner is $25) In 2020, Jim inherited over $500,000 from his Uncle Travis that died in 2020. Al- though Jim invested a large portion, he also contributed $125,000 cash to the newly 5-59 Questions and Problems named Travis School of Criminal Justice at the University of Reno. Jim also received the following Form 1098: 2020 Mortgage Interest Statement O CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. *Caution: The amount shown may OMB No. 1545-1380 not be fully deductible by you. Limits based on the loan amount Reno Savings & Loan and the cost and value of the secured property may apply. Also, 49 Commerce Street you may only deduct interest to the extent it was incurred by you, Reno, NV 89501 actually paid by you, and not reimbursed by another person Form 1098 1 Mortgage interest received from payer(s)/borrower(s) $ 18,888.78 RECIPIENT'S/LENDER'S TIN PAYER'S/BORROWER'S TIN 2 Outstanding mortgage 3 Mortgage origination date principal 33-1234569 555-94-9358 $ 592,355.15 Mar 3, 2004 4 Refund of overpaid 5 Mortgage insurance interest premiums PAYER'S/BORROWER'S name $ $ James Dangell 6 Points paid on purchase of principal residence $ Street address (including apt. no.) 7 If address of property securing mortgage is the same 911 Parr Boulevard as PAYER'S/BORROWER'S address, the box is checked, or the address or description is entered in box 8. Copy B For Payer/ Borrower The information in boxes 1 through 9 and 11 is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points, reported in boxes 1 and 6; or because you didn't report the refund of interest (box 4); or because you claimed a nondeductible item. City or town, state or province, country, and ZIP or foreign postal code Reno, NV 89512 8 Address or description of property securing mortgage (see instructions) 10 Other 9 Number of properties securing the mortgage 1 11 Mortgage Account number (see instructions) acquisition date Form 1098 (Keep for your records) www.irs.gov/Form 1098 Department of the Treasury - Internal Revenue Service Required: Complete Jim's federal tax return for 2020. Use Form 1040, Schedule 1, Schedule A, Schedule B, and Form 8889 to complete this tax return. Make realistic assumptions about any missing data. Chd 5-58 GROUP 4: COMPREHENSIVE PROBLEMS Visit the IRS website at www.irs.gov/efile OMB No. 1545-0008 FAST! Use a Employee's social security number 555-94-9358 b Employer identification number (EIN) 31-1459656 c Employer's name, address, and ZIP code Lucky Ace Casino 700 N. Sierra Street Reno, NV 89503 Safe, accurate, 1RS rse - file 1 Wages, tips, other compensation 192,000.00 3 Social security wages 137,700.00 5 Medicare wages and tips 200,000.00 7 Social security tips 2 Federal income tax withheld 24,500.00 4 Social security tax withheld 8,537.40 6 Medicare tax withheld 2,900.00 8 Allocated tips 9 10 Dependent care benefits d Control number Suff. 11 Nonqualified plans Last name 13 Statutory Retirement employee Third-party sick pay X e Employee's first name and initial James Dangell 911 Parr Blvd. Reno, NV 89512 12a See instructions for box 12 D 8,000.00 12b W 1,200.00 12c 8 12d 8 14 Other 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name f Employee's address and ZIP code 15 State Employer's state ID number nul. Department of the Treasury-Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 1. James Dangell (birthdate August 2, 1976) is a single taxpayer. Jim's earnings and with- holdings as the manager of a local casino for 2020 are reported on his Form W-2: Fund-raising dinner for the Reno Auto Museum Form W-2 Wage and Tax Statement 2020 Jim's other income includes interest on a savings account at Nevada National Bank of $13,700. Jim pays his ex-spouse, Sarah McLoughlin, $3,900 per month in accordance with their February 12, 2019 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,800 per month. His ex- wife's Social Security number is 554-44-5555. In 2020, Jim purchased a new car and so he kept track of his sales tax receipts dur- ing the year. His actual sales tax paid is $3,650, which exceeds the estimated amount per the IRS tables. Jim participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $75 in 2020. During the year, Jim paid the following amounts (all of which can be 4,300 2,988 2,000 900 0 1,350 3,100 is bas 250 100 $1,760 900 substantiated): Credit card interest Auto loan interest Auto insurance Property taxes on personal residence Contributions to HSA Income tax preparation fee Charitable contributions (all cash): Boy Scouts St. Matthews Church Nevada Democratic Party upe (value of dinner is $25) In 2020, Jim inherited over $500,000 from his Uncle Travis that died in 2020. Al- though Jim invested a large portion, he also contributed $125,000 cash to the newly 5-59 Questions and Problems named Travis School of Criminal Justice at the University of Reno. Jim also received the following Form 1098: 2020 Mortgage Interest Statement O CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. *Caution: The amount shown may OMB No. 1545-1380 not be fully deductible by you. Limits based on the loan amount Reno Savings & Loan and the cost and value of the secured property may apply. Also, 49 Commerce Street you may only deduct interest to the extent it was incurred by you, Reno, NV 89501 actually paid by you, and not reimbursed by another person Form 1098 1 Mortgage interest received from payer(s)/borrower(s) $ 18,888.78 RECIPIENT'S/LENDER'S TIN PAYER'S/BORROWER'S TIN 2 Outstanding mortgage 3 Mortgage origination date principal 33-1234569 555-94-9358 $ 592,355.15 Mar 3, 2004 4 Refund of overpaid 5 Mortgage insurance interest premiums PAYER'S/BORROWER'S name $ $ James Dangell 6 Points paid on purchase of principal residence $ Street address (including apt. no.) 7 If address of property securing mortgage is the same 911 Parr Boulevard as PAYER'S/BORROWER'S address, the box is checked, or the address or description is entered in box 8. Copy B For Payer/ Borrower The information in boxes 1 through 9 and 11 is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points, reported in boxes 1 and 6; or because you didn't report the refund of interest (box 4); or because you claimed a nondeductible item. City or town, state or province, country, and ZIP or foreign postal code Reno, NV 89512 8 Address or description of property securing mortgage (see instructions) 10 Other 9 Number of properties securing the mortgage 1 11 Mortgage Account number (see instructions) acquisition date Form 1098 (Keep for your records) www.irs.gov/Form 1098 Department of the Treasury - Internal Revenue Service Required: Complete Jim's federal tax return for 2020. Use Form 1040, Schedule 1, Schedule A, Schedule B, and Form 8889 to complete this tax return. Make realistic assumptions about any missing data