COMPLETE THE TAX RETURN AND SCHEDULES ABOVE

John Paynotax, age 56, and Mary Paynotax, age 57, are doing their 2020 income tax return. John is a self-employed attorney and Mary is not employed. John's Social Security Number is 123-45-6789 and Mary's Social Security Number is 234-56-7891. They live at 40 Depreciation Bld, Utica, NY 13501. They have three children Sarah, Paynotax, age 19 who is in college ( 2nd year) Amy Paynotax, age 16 who is in High school ( 2st year) Douglas Paynotax age 14 John had taxable interest income of $12,000.00 from various CDs at local banks. $3,000.00 from M\&T $6,000.00 from Berkshire Bank $3,000.00 from Key Bank John received a life insurance benefit of $10,000.00 from his father's life insurance policy. His father died in 2020 . John also had an IRA distribution of $500.00 from an inherited IRA from his father. John materially participated in a business in 2020 and had gross receipts (income from the business) in the amount of $301,000.00. He also gave a refund to a client in 2020 for $1,000.00. He uses the cash method for accounting purposes. He did not sell any goods. He has to pay self-employment tax. He utilized his car for the business and traveled $12,000.00 miles. He used it for personal use as well. John and Mary have another vehicle for personal use in 2020 . They sold that vehicle for $3,000.00 in 2020 . They paid $15,000.00 for it used in 2017 . He also had taxes on his office building where he works from 2020 for the sum of $8,000.00 John cashed in Pony Express Stock that he purchased on June 1, 2019 for $10,000.00 and sold it for $15,000.00 on March 31, 2020. There are no adjustments. He had a Tractor (John Deere) he bought on July 5, 2019 for $5,000.00 and sold it for on March 31, 2020 for $3,000.00. John tells you that he and Mary has itemized deductions in the amount of $10,000.00 each for 2020. He doesn't know whether to take the standard deduction for 2020. John has a high deductible health insurance policy (family plan) and contributed $8,100.00 to an HSA in 2020. He had $7,500.00 in qualified medical expenses (distributions). John and Mary live at 40 Depreciation Bld from May of 2020 forward. Prior to that they lived at 20 Alimony Drive since April of 2016. There was a period of time in 2018 that they rented an apartment in Atlanta near to a specialized hospital and stayed there for 8 months due to health concerns for Mary. John and Mary sold the Alimony Drive property for $600,000 in 2020 . They paid $90,000.00 for it in 2006. They put an addition on it in 2017 for $50,000.00 and paid a real estate agent $36,000.00 in fees when they sold it. He will need the following forms 1. US 1040 2. Schedule 1 3. Schedule 2 4. Schedule B 5. Schedule C 6. Schedule D 7. Schedule SE (Self Employment Tax) 8. Form 8949 Sale of Capital Assets 9. Form 8995 (QBI Deduction) John Paynotax, age 56, and Mary Paynotax, age 57, are doing their 2020 income tax return. John is a self-employed attorney and Mary is not employed. John's Social Security Number is 123-45-6789 and Mary's Social Security Number is 234-56-7891. They live at 40 Depreciation Bld, Utica, NY 13501. They have three children Sarah, Paynotax, age 19 who is in college ( 2nd year) Amy Paynotax, age 16 who is in High school ( 2st year) Douglas Paynotax age 14 John had taxable interest income of $12,000.00 from various CDs at local banks. $3,000.00 from M\&T $6,000.00 from Berkshire Bank $3,000.00 from Key Bank John received a life insurance benefit of $10,000.00 from his father's life insurance policy. His father died in 2020 . John also had an IRA distribution of $500.00 from an inherited IRA from his father. John materially participated in a business in 2020 and had gross receipts (income from the business) in the amount of $301,000.00. He also gave a refund to a client in 2020 for $1,000.00. He uses the cash method for accounting purposes. He did not sell any goods. He has to pay self-employment tax. He utilized his car for the business and traveled $12,000.00 miles. He used it for personal use as well. John and Mary have another vehicle for personal use in 2020 . They sold that vehicle for $3,000.00 in 2020 . They paid $15,000.00 for it used in 2017 . He also had taxes on his office building where he works from 2020 for the sum of $8,000.00 John cashed in Pony Express Stock that he purchased on June 1, 2019 for $10,000.00 and sold it for $15,000.00 on March 31, 2020. There are no adjustments. He had a Tractor (John Deere) he bought on July 5, 2019 for $5,000.00 and sold it for on March 31, 2020 for $3,000.00. John tells you that he and Mary has itemized deductions in the amount of $10,000.00 each for 2020. He doesn't know whether to take the standard deduction for 2020. John has a high deductible health insurance policy (family plan) and contributed $8,100.00 to an HSA in 2020. He had $7,500.00 in qualified medical expenses (distributions). John and Mary live at 40 Depreciation Bld from May of 2020 forward. Prior to that they lived at 20 Alimony Drive since April of 2016. There was a period of time in 2018 that they rented an apartment in Atlanta near to a specialized hospital and stayed there for 8 months due to health concerns for Mary. John and Mary sold the Alimony Drive property for $600,000 in 2020 . They paid $90,000.00 for it in 2006. They put an addition on it in 2017 for $50,000.00 and paid a real estate agent $36,000.00 in fees when they sold it. He will need the following forms 1. US 1040 2. Schedule 1 3. Schedule 2 4. Schedule B 5. Schedule C 6. Schedule D 7. Schedule SE (Self Employment Tax) 8. Form 8949 Sale of Capital Assets 9. Form 8995 (QBI Deduction)