Question
Danae Coleman is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. She is a supervisor and her SSN is 412-34-5670. Using the following
Danae Coleman is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. She is a supervisor and her SSN is 412-34-5670. Using the following information, complete her tax return for 2020: Kimber Company W-2: Gross $ 90,000 Social security tax 5,580 Medicare tax 1,305 Federal withholding tax 16,300 State withholding tax 2,700 Lee Company W-2: Gross $ 22,500 Social security tax 1,395 Medicare tax 326 Federal withholding tax 2,300 State withholding tax 600 Danae has the following itemized deductions: Real estate tax $ 7,633 Mortgage interest 8,445 Charitable contributions 3,000 Danae has the following investments: 1099-INT $ 2,510 1099-DIV Ordinary dividends 2,389 Qualified dividends 1,963 Capital gain distribution 4,711 2019 short-term loss carryover (1,000) She also has received interest from a 1099-INT of $2,510 from Asha Corporation Bank and a dividend from a Form 1099-DIV of $2,389 in ordinary dividends received from Mint brokerage, of which $1,963 are considered qualified dividends. Danae received a gift of 2,000 shares of FNP Incorporated stock from her Aunt Jane on January 19, 2020. The basis of the shares to Aunt Jane was $4,300, and they had an FMV of $4,600 on the date of the gift. Aunt Jane purchased the stock on December 30, 2018. On June 30, 2020, Danae sold all the shares for $6,000. Danae is an avid stamp collector and purchased a rare stamp on March 20, 2010, for $4,000. She sold the stamp for $6,000 on April 8, 2020. Required: Prepare Form 1040 and all related schedules, forms, and worksheets for 2020. Danae does not donate to the presidential election campaign. Danae is a manager at Kimber Company and had qualifying health care coverage at all times during the tax year. (Indicate losses with minus sign and enter all other values as positive amounts. Round your final answers to nearest whole dollar.)
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