Compute Dan and Freida's 2020 Qualified Dividends and Capital Gain Tax Worksheet. Help with the worksheet!

Compute Dan and Freida's 2020 Qualified Dividends and Capital Gain Tax Worksheet

Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Keep for Your Records Before you begin: See the earlier instructions for line 16 to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1040 through line 15. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7. 1. Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet (Taxable income) 2. Enter the amount from Form 1040, line 3a* 2. 1. 3. 3. Are you filing Schedule D?* Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0- No Enter the amount from Form 1040 or 1040-SR, line 7. 4. Add lines 2 and 3. 4. 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter-O-...... 6. Subtract line 5 from line 4. If zero or less, enter - - 10 5. 6. 7. Subtract line 6 from line 1. If zero or less, enter-O- 7. 8. Enter: $40,000 if single or married filing separately, $80,000 if married filing jointly or qualifying widow(er), 8. $53,600 if head of household. 9. Enter the smaller of line 1 or line 8 9. 10. Enter the smaller of line 7 or line 9. 10. 11. Subtract line 10 from line 9. This amount is taxed at 0% 11. LINDO 12. Enter the smaller of line 1 or line 6. 12. 13. Enter the amount from line 11 13. 14. Subtract line 13 from line 12.. 14. 15. Enter: $441,450 if single, $248,300 if married filing separately, 15. $496,600 if married filing jointly or qualifying widow(er), $469,050 if head of household. 16. Enter the smaller of line 1 or line 15. 16. 17. Add lines 7 and 11 17. 18. Subtract line 17 from line 16. If zero or less, enter -- 18. 19. Enter the smaller of line 14 or line 18. 19. 20. Multiply line 19 by 15% (0.15). 20. 21. Add lines 11 and 19... 21. 22. Subtract line 21 from line 12 22. 23. Multiply line 22 by 20% (0.20).. 23. 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet. 25. Add lines 20, 23, and 24... 24. bobo 25. 26. 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet .......... 27. Tax on all taxable income. Enter the smaller of line 25 or 26. Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet... 27. If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. Line Description Dan Freida 1 Wages, tips, other compensation $74,000 $86,000 2 Federal income tax withheld 11,000 12,400 17 State income tax withheld 2,960 3,440 Freida sold a house on December 30, 2020, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10, 2021, closing date. Other income (as reported on 1099 Forms) for 2020 consisted of the following: Dividends on CSX stock (qualified) $4,200 Interest on savings at Second Bank 1,600 Interest on City of Corbin bonds Interest on First Bank CD 382 The $382 from First Bank was an original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2020. The CD was purchased on October 1, 2018, for $14,995, and the yield to maturity was 3.3%. Dan participated on a game show and won a cash prize of $7,000. In addition to the above information, Dan and Freida's itemized deductions included the following: 900 $700 600 Paid on 2020 Kentucky income tax Personal property tax paid Real estate taxes paid Interest on home mortgage (Corbin S&L) 1,800 4,900 9 173,182 $12,400 Married filing jointly or Qualifying widow(er), $24,800 Head of household, $18,650 . If you checked any box under Standard Deduction, see instructions. Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income ... 10 Adjustments to income: a From Schedule 1, line 22.... 10a b Charitable contributions if you take the standard deduction. See instructions ..... 10b c Add lines 10a and 10b. These are your total adjustments to income. 11 Subtract line 10c from line 9. This is your adjusted gross income 100 11 173,182 12 24,800 12 Standard deduction or itemized deductions (from Schedule A)..... 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A.. 14 Add lines 12 and 13. 13 14 24,800 15 148,382 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O-... BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2020) Form 1040 (2020) Daniel and Freida C Butler 111-11-1112 Page 2 16 Tax (see instructions). Check if any from Form(s): 108814 2 04972 30 16 17 Amount from Schedule 2, line 3 17 18 Add lines 16 and 17 18 AL: JL Juc . Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Keep for Your Records Before you begin: See the earlier instructions for line 16 to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1040 through line 15. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7. 1. Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet (Taxable income) 2. Enter the amount from Form 1040, line 3a* 2. 1. 3. 3. Are you filing Schedule D?* Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0- No Enter the amount from Form 1040 or 1040-SR, line 7. 4. Add lines 2 and 3. 4. 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter-O-...... 6. Subtract line 5 from line 4. If zero or less, enter - - 10 5. 6. 7. Subtract line 6 from line 1. If zero or less, enter-O- 7. 8. Enter: $40,000 if single or married filing separately, $80,000 if married filing jointly or qualifying widow(er), 8. $53,600 if head of household. 9. Enter the smaller of line 1 or line 8 9. 10. Enter the smaller of line 7 or line 9. 10. 11. Subtract line 10 from line 9. This amount is taxed at 0% 11. LINDO 12. Enter the smaller of line 1 or line 6. 12. 13. Enter the amount from line 11 13. 14. Subtract line 13 from line 12.. 14. 15. Enter: $441,450 if single, $248,300 if married filing separately, 15. $496,600 if married filing jointly or qualifying widow(er), $469,050 if head of household. 16. Enter the smaller of line 1 or line 15. 16. 17. Add lines 7 and 11 17. 18. Subtract line 17 from line 16. If zero or less, enter -- 18. 19. Enter the smaller of line 14 or line 18. 19. 20. Multiply line 19 by 15% (0.15). 20. 21. Add lines 11 and 19... 21. 22. Subtract line 21 from line 12 22. 23. Multiply line 22 by 20% (0.20).. 23. 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet. 25. Add lines 20, 23, and 24... 24. bobo 25. 26. 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet .......... 27. Tax on all taxable income. Enter the smaller of line 25 or 26. Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet... 27. If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. Line Description Dan Freida 1 Wages, tips, other compensation $74,000 $86,000 2 Federal income tax withheld 11,000 12,400 17 State income tax withheld 2,960 3,440 Freida sold a house on December 30, 2020, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10, 2021, closing date. Other income (as reported on 1099 Forms) for 2020 consisted of the following: Dividends on CSX stock (qualified) $4,200 Interest on savings at Second Bank 1,600 Interest on City of Corbin bonds Interest on First Bank CD 382 The $382 from First Bank was an original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2020. The CD was purchased on October 1, 2018, for $14,995, and the yield to maturity was 3.3%. Dan participated on a game show and won a cash prize of $7,000. In addition to the above information, Dan and Freida's itemized deductions included the following: 900 $700 600 Paid on 2020 Kentucky income tax Personal property tax paid Real estate taxes paid Interest on home mortgage (Corbin S&L) 1,800 4,900 9 173,182 $12,400 Married filing jointly or Qualifying widow(er), $24,800 Head of household, $18,650 . If you checked any box under Standard Deduction, see instructions. Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income ... 10 Adjustments to income: a From Schedule 1, line 22.... 10a b Charitable contributions if you take the standard deduction. See instructions ..... 10b c Add lines 10a and 10b. These are your total adjustments to income. 11 Subtract line 10c from line 9. This is your adjusted gross income 100 11 173,182 12 24,800 12 Standard deduction or itemized deductions (from Schedule A)..... 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A.. 14 Add lines 12 and 13. 13 14 24,800 15 148,382 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O-... BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2020) Form 1040 (2020) Daniel and Freida C Butler 111-11-1112 Page 2 16 Tax (see instructions). Check if any from Form(s): 108814 2 04972 30 16 17 Amount from Schedule 2, line 3 17 18 Add lines 16 and 17 18 AL: JL Juc