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Could you please help me solve this problem with the form? Ken is 63 years old and unmarried. He retired at age 55 when he

Could you please help me solve this problem with the form?

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.

Ken won $1,260 in an illegal game of poker (the game was played in Utah, where gambling is illegal).

Ken sold 1,060 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.

Ken received $25,600 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $215,040.

Ken received $13,150 in disability benefits for the year. He purchased the disability insurance policy last year.

Ken decided to go back to school to learn about European history. He received a $560 cash scholarship to attend. He used $330 to pay for his books and tuition, and he applied the rest toward his new car payment.

Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,190.

Ken received a $640 refund of the $3,660 in state income taxes his employer withheld from his pay last year. Ken claimed $12,660 in itemized deductions last year (the standard deduction for a single filer was $12,550).

Ken received $30,600 of interest from corporate bonds and money market accounts.

2. Complete page 1 of Form 1040 (through line 9) for Ken.

image text in transcribed

1040 OMB No. 1545-0074 IRS Lee Only-Do not wite or staple in this spece. \begin{tabular}{ll} \hline Digital & At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, \\ Assets & exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Yes No \\ Standard & Someone can claim: You as a dependent Your spouse as a dependent \\ Deduction Spouse itemizes on a separate retum or you were a dual-status alien \end{tabular} Age/Blindness You: Were born before January 2, 1958 Are blind Spouse: Was born before January 2, 1958 Is blind Dependents (see instructions): (2) Social security (3) Relationship (4) Check the box if qualifies for (see ingtructions): If more (1) First name than four dependents, see instructions and check here . 1a Total amount from Form(s) W-2, box 1 (see instructions) b Household employee wages not reported on Form(s) W-2 . Attach Form(s) c Tip income not reported on line 1a (see instructions) W-2 here. Also attach Forms d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) W-2G and Taxable dependent care benefits from Form 2441 , line 26 1099- R if tax was withheld. Employer-provided adoption benefits from Form 8839, line 29 If you did not g Wages from Form 8919 , line 6. get a Form h Other eamed income (see instructions) W-2, see instructions. i Nontaxable combat pay election (see instructions) ....... . . . . - Saried of tiling c If you elect to use the lump-sum election method, check here (see instructions) \begin{tabular}{l|l} separately, \\ $12,950 \end{tabular}7 Capital gain or (loss). Attach Schedule D if required. If not required, check here - Maried filing 8 Other income from Schedule 1, line 10 jaintly ar 9 Add lines 12,2b,3b,4b,5b,6b,7, and 8 . This is your total income. Qualifying surving spouse, $25,900 10 Adjustments to income from Schedule 1 , line 26 - Hoad of 11 Subtract line 10 from line 9 . This is your adjusted gross income household, $19,400 12 Standard deduction or itemized deductions (from Schedule A) - If you checked Qualfied business income deduction from Form 8995 or Form 8995A any box unde Standard 14 Add lines 12 and 13. Dedenction, Deductian, 15 Subtract line 14 from line 11. If zero or less, enter-0-. This is your taxable income For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No, 113208 Form 1040(2022)

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