Question
Comprehensive Problem 5-2A Bea Jones (birthdate March 27, 1985) moved from Texas to Florida in January 2020 after divorcing her spouse in 2019. She and
Comprehensive Problem 5-2A
Bea Jones (birthdate March 27, 1985) moved from Texas to Florida in January 2020 after divorcing her spouse in 2019. She and her daughter, Dee Jones (birthdate 5/30/2010, Social Security number 121-44-6666) live at 654 Ocean Way, Gulfport, FL 33707. Bea provides all of Dee's support. Bea can claim a child tax credit for Dee. Bea's Social Security number is 466-78-7359 and she is single.
Bea's other income includes interest on a savings account at Beach National Bank of $1,200 and $600 per month alimony from her ex-husband in accordance with their August 2019 divorce decree. In 2020, during the COVID pandemic, Bea's employer agreed to pay $5,250 of her student loans under the employee educational assistance plan. $4,500 went to the loan principal and the rest was interest. Unfortunately, that did not cover all of Bea's student loan payment and she was required to pay another $450 of student loan interest herself.
Bea received a $1,700 EIP in 2020.
In order to move herself and Dee after the divorce, Bea spent $800 moving her household goods (trailer rental), $200 on meals and $300 on lodging while traveling between Texas and Florida. The drive was 1,005 miles.
After moving to Gulfport, Bea sent Dee to a local private school for the remainder of 5th grade. Bea used $4,000 from Dees Section 529 plan to pay for private school tuition as reported on the Form 1099-Q below. Dee had always attended public schools in Texas.
Bea's employer operates a 401(k) plan, and although she is eligible, Bea does not participate.
During 2020, Bea paid the following amounts (all of which can be substantiated):
|
After the divorce, Bea had to purchase a car for herself and all the furnishings for her home. She kept her receipts and has total sales taxes of $2,730, which exceeds the sales tax estimate from the IRS tables.
In September 2020, Tropical Storm Yuri struck Gulfport and a tree fell on Bea's home. Bea acquired the home in January 2020 for $112,000. The estimated loss in market value from damage was equal to her repair charge of $12,000. The damage caused by TS Yuri was declared a federal disaster (code EM-1212). Bea's deductible was quite high and her insurance company only reimbursed her $2,000.
information from :
form W2 Wage : $51,200 Federal income tax withheld 3,600
form 1099 Q 1. Gross distribution :$4,000 2. earnings : $250 3. Basis $3,746
Required: Complete Bea's Form 1040 and Schedules 1, A and Form 4684.
please, help me soon . thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started