Dear Tutor,
Can you please tell me if I have completed these two IRS tax forms (Schedule 1 and Schedule C) correctly as per the Professor's instructions?
SCHEDULE 1 OMB No. 1545-0074 Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? . Yes No Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 Alimony received 2a b Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C . 3 2, 300 Other gains or (losses). Attach Form 4797 . Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F & Sless Unemployment compensation . Other income. List type and amount 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE . 14 15 Self-employed SEP, SIMPLE, and qualified plans . 15 16 Self-employed health insurance deduction . 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid . 18a Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction . 19 20 Student loan interest deduction 20 2,300 21 Tuition and fees. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 201911/7/2020 Individual Tax CRN 85211 Project 2 75 points Due Tuesday, December 8, 2020 Bob and Jill, a married couple, need to le their 2012-1I taxes. Their income and expense information for the tax year follows. They wish to use the \"Married Filing Jointly\" ling status. They have one child, Dave, who is 5 years old and lives with them at home. They pay 4,000 a year for after school care for Dave (hint Form 2441 and Schedule 3) Their relevant W-2 information follows 0 82,000 of combined federal taxable income 0 They had 12,500 of federal taxes withheld 0 They paid [had withheld] 2,600 of state taxes I They received a state tax refund in 2019 from their 2018 taxes of 328 dollars. 0 They paid [had withheldi1,800 of local taxes They rent their home and pay no mortgage interest They paid 2,500 of student loan interest in 2019 Jill has a side business named "Jill's Fabulous Cupcakes\" in which she earned 3,000 in income and incurred 700 dollars of expenses in 2019 (hint schedules c and 5E}. All addresses and SSNs can be made up by the student in preparing this return. Requirements Grading To complete Bob and Jill's 2019 tax return. All forms necessary are provided. All information necessary is provided in this document. If you need assistance with completing this tax return, see any ofthe prior chapter Homework tax return problems. They can help you in understanding the numerical flow on a tax return, that is, how one page flows to another. Grading is done by sheet, and in consideration of the overall quality of the tax return. One mistake does not carry forward to other mistakes on the return where that mistake goes. SCHEDULE C (Form 1040 or 1040-SR) Profit or Loss From Business OMB No. 1545-0074 (Sole Proprietorship) Department of the Treasury Go to www.irs.gov/ScheduleC for instructions and the latest information. 2019 Attachment Internal Revenue Service (89) _ Attach to Form 1040, 1040-SR. 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Name of proprietor will wilson AC Principal business or profession, including product or service (see instructions) Laterer B Enter HAD320 appa jiIs Fabulous Cupcakes 123 4567519 Business address (including suite or room no.) City, town or post office, state, and-ZIP code Accounting method: (1) Cash (2) Accrual (3) ]other (specify) Did you "materially participate" in the operation of this business during 2019? If "No," see instructions for limit on losses Yes No If you started or acquired this business during 2019, check here O Did you make any payments in 2019 that would require you to file Form(s) 10997 (see instructions) Yes No If "Yes," did you or will you file required Forms 1099? Yes No Part | Income Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked . Returns and allowances 2 A W N Subtract line 2 from line 1 13, 000 Cost of goods sold (from line 42) Gross profit. Subtract line 4 from line 3 2,300 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 7 Gross income. Add lines 5 and 6 . 7 1 300 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising . 18 Office expense (see instructions) 18 CD Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions). 20 Rent or lease (see instructions): 10 Commissions and fees Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) 11 Other business property 20b 12 Depletion . 12 21 Repairs and maintenance 21 13 Depreciation and section 179 22 Supplies (not included in Part III) 22 expense deduction included in Part III) (see 23 Taxes and licenses . 23 instructions) . . 13 24 Travel and meals: 14 Employee benefit programs Travel . . 24a (other than on line 19). 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions) . 24b 16 Interest (see instructions): 25 Utilities 25 Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits). 26 b Other 16b 27a Other expenses (from line 48) . 27a 17 Legal and professional services 17 b Reserved for future use 27b Total expenses before expenses for business use of home. Add lines 8 through 27a . 28 Tentative profit or (loss). Subtract line 28 from line 7 . 29 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: . Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 30 31 Net profit or (loss). Subtract line 30 from line 29. . If a profit, enter on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and 91 2,300 trusts, enter on Form 1041, line 3 . If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity (see instructions). . If you checked 32a, enter the loss on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 32a All investment is at risk. 31 instructions). Estates and trusts, enter on Form 1041, line 3. 32b Some investment is not at nsk. . If you checked 32b, you must attach Form 6198. Your loss may be limited. For Paperwork Reduction Act Notice, see the separate Instructions. Cat. No. 11334P Schedule C (Form 1040 or 1040-SR) 2019Schedule C (Form 1040 or 1040-SF) 2019 Page 2 Part III I Cost of Goods Sold (see instructions 33 Method(s) used to value closing inventory: a Cost b Lower of cost or market c Other (attach explanation) 34 Was there any change In determining quantitles, costs, or valuations between opening and closing Inventory? if "Yes," attach explanation . Yes DNo 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . 36 Purchases less cost of items withdrawn for personal use 37 Cost of labor. Do not include any amounts paid to yourself . 37 38 Materials and supplies 38 Foc 39 Other costs. 39 Add lines 35 through 39 40 700 41 Inventory at end of year . 41 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . 42 1700 Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 13 When did you place your vehicle in service for business purposes? (month, day, year)! 44 Of the total number of miles you drove your vehicle during 2019, enter the number of miles you used your vehicle for. Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 16 Do you (or your spouse) have another vehicle available for personal use?. Yes No 47a Do you have evidence to support your deduction? Yes No b If "Yes," is the evidence written? Yes No Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30 48 Total other expenses. Enter here and on line 27a . 48 Schedulec (Form 1040 or 1040-SR) 2019
