Derrick and Ani Jones are married taxpayers, filing jointly, and have a son named Jackson. They live at 474 Rustic Drive, Spokane, WA 99201. Ani works as the director of information systems at Washington Community College District (WCCD). Derrick is a stay-at-home dad. Their SSNs are Derrick, 412-34-5670; Ani, 412-34-5671; and Jackson, 412-34-5672. Their birth dates are as follows: Derrick, June 7, 1980; Ani, March 20, 1981; and Jackson, October 10, 2013. The Joneses own their home and paid $15,000 in mortgage interest during the year to Chase Bank and property taxes of $3,200. Assume they have no other deductible expenses. The Form W-2 Ani received from WCCD contained the following information: Wages (box 1) Federal w/H (box 2) Social security wages (box 3) Social security W/H (box 4) Medicare wages (box 5) Medicare W/H (box 6) $ 79,002.50 $ 7,000.14 $ 79,002.50 $ 4,898.16 $ 79,002.50 $ 1,145.54 In addition, the Joneses own a small, four-unit rental at 12345 Rainbow Way, Sultan, WA 98294. The rental was purchased and placed in service on July 1, 2007, and was rented for the entire year. The following income and expense information relatesto the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations. Rental income Real estate taxes State sales taxes Utilities Mortgage interest Depreciation Repairs and maintenance $ 24,000 2,000 1,349 1,500 3,800 7,200 1,300 16 6,953 17 18 6,953 19 20 21 0 9,901 22 23 24 9,901 25a 7,000 25b 250 7,000 250 26 16 Tax (see instructions). Check it any from Form(s) (1)8814 2) 4972 (3) 17 Amount from Schedule 2. line 3 18 Add lines 16 and 17 19 Chid tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less, enter -- 23 other taxes, including self-employment tax, from Schedule 2, line 10 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from a Form() W-2 b Form(s) 1099 Other forms (sce instructions) dAdd Ines 25a through 25 26 2020 estimated tax payments and amourt appled from 2019 return 27 Earned income credit (BC) 28 Additional child tax credit. Attach Schedule 8812 29 American opportunty credit from Form 6863, Ine 8 30 Recovery rebate credit, See instructions 31 Amount from Schedule 3, line 13 32 Add lines 27 through 31. These are your total other payments and refundable credits 33 Add lines 254, 25, and 32. These are your total payments 341 ine 33 is more than Iine 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached check here Routing number e Type: Checking d Account number 36 Amourt of line 34 you want applied to your 2021 estimated tax 37 Subtract line 33 from line 24. This is the amount you owe now Note: Schedule Hand Schedule SE fillers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, and its instructions for details 38 Estimated tax penaty (see instructions) If you have a qualifying child attach Sch. EC - If you have nontocable combat pay, see instructions 27 28 29 30 31 32 0 7,000 33 34 Refund 35a Savings Direct depost? See instructions 36 37 Amount You Owe For details on how to pay, see instructions 38 1 Qualified Business Income Deduction OMB No. 1545.0123 Form 8995 Simplified Computation 2020 Department of the Treasury Attach to your tax return. Internal Revenue Service Go to www.irs.gov.Form8995 for instructions and the latest Information. Attachment Sequence No. 55 Name(s) shown on return Identifying number(xxx-xx-xxxx) Derrick Jones Ani Jones 412-34-5670 Note. You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or business, real estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an agricutural or horticultural cooperative. See instructions Use this form if your taxable income, before your qualified business income deduction, is at or below $163,300 ($325,600 it married filing jointly), and you arent a patron of an agricutural or horticutural cooperative (c) Qualified b) Taxpayer business (b) Trade, business, or aggregation name identification number income or (loss) 412-34 Rental Real Estate 5670 8,200 1 i . IV V 8,200 3 4 8,200 1,640 6 7 8 9 9 10 Total qualified business income or loss). Combine lines lithrough 1v. column (c) 2 Qualified business net (loss) carryforward from the prior year (Enter as negative) 3 4 Total Qualified business income. Combine lines 2 and 3. If zero or less, enter - - 5 Qualified business income component, Mutiply line 4 by 20% (0.20) 6 Qualified REIT dividends and publicly traded partnership PTP) income or loss) (see instructions) Qualified REIT dividends and qualified PTP (los) carryforward from the prior year (Enter as negative) 7 Total qualified ReiT dividends and PTP income. Combine lines 6 and 7. If zero or less, erter -- RET and PTP component. Multiply line 8 by 20% (0.20) Qualified business income deduction before the income intation. Add ines 5 and 9 11 Tacable income before qualified business income deduction 12 Net capital gain (see instructions) Subtractine 12 from line 11. If zero or less, enter -- income limitation, Multiply line 13 by 20% (0.20) 15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return 16 Total Qualified business (loss) carryforward. Combine ines 2 and 3. If greater than zero, enter- 17 Total Qualified REIT dividends and PTP (los) carryforward. Combine lines 6 and 7. If greater than zero, enter -.. For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat No. 37808C 10 1,640 11 61,563 12 13 13 61 563 14 14 12,313 1.640 15 (Enter as negative) 16 (Enter as negative) 17 Form 8995 (2020) Derrick and Ani Jones are married taxpayers, filing jointly, and have a son named Jackson. They live at 474 Rustic Drive, Spokane, WA 99201. Ani works as the director of information systems at Washington Community College District (WCCD). Derrick is a stay-at-home dad. Their SSNs are Derrick, 412-34-5670; Ani, 412-34-5671; and Jackson, 412-34-5672. Their birth dates are as follows: Derrick, June 7, 1980; Ani, March 20, 1981; and Jackson, October 10, 2013. The Joneses own their home and paid $15,000 in mortgage interest during the year to Chase Bank and property taxes of $3,200. Assume they have no other deductible expenses. The Form W-2 Ani received from WCCD contained the following information: Wages (box 1) Federal w/H (box 2) Social security wages (box 3) Social security W/H (box 4) Medicare wages (box 5) Medicare W/H (box 6) $ 79,002.50 $ 7,000.14 $ 79,002.50 $ 4,898.16 $ 79,002.50 $ 1,145.54 In addition, the Joneses own a small, four-unit rental at 12345 Rainbow Way, Sultan, WA 98294. The rental was purchased and placed in service on July 1, 2007, and was rented for the entire year. The following income and expense information relatesto the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations. Rental income Real estate taxes State sales taxes Utilities Mortgage interest Depreciation Repairs and maintenance $ 24,000 2,000 1,349 1,500 3,800 7,200 1,300 16 6,953 17 18 6,953 19 20 21 0 9,901 22 23 24 9,901 25a 7,000 25b 250 7,000 250 26 16 Tax (see instructions). Check it any from Form(s) (1)8814 2) 4972 (3) 17 Amount from Schedule 2. line 3 18 Add lines 16 and 17 19 Chid tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less, enter -- 23 other taxes, including self-employment tax, from Schedule 2, line 10 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from a Form() W-2 b Form(s) 1099 Other forms (sce instructions) dAdd Ines 25a through 25 26 2020 estimated tax payments and amourt appled from 2019 return 27 Earned income credit (BC) 28 Additional child tax credit. Attach Schedule 8812 29 American opportunty credit from Form 6863, Ine 8 30 Recovery rebate credit, See instructions 31 Amount from Schedule 3, line 13 32 Add lines 27 through 31. These are your total other payments and refundable credits 33 Add lines 254, 25, and 32. These are your total payments 341 ine 33 is more than Iine 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached check here Routing number e Type: Checking d Account number 36 Amourt of line 34 you want applied to your 2021 estimated tax 37 Subtract line 33 from line 24. This is the amount you owe now Note: Schedule Hand Schedule SE fillers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, and its instructions for details 38 Estimated tax penaty (see instructions) If you have a qualifying child attach Sch. EC - If you have nontocable combat pay, see instructions 27 28 29 30 31 32 0 7,000 33 34 Refund 35a Savings Direct depost? See instructions 36 37 Amount You Owe For details on how to pay, see instructions 38 1 Qualified Business Income Deduction OMB No. 1545.0123 Form 8995 Simplified Computation 2020 Department of the Treasury Attach to your tax return. Internal Revenue Service Go to www.irs.gov.Form8995 for instructions and the latest Information. Attachment Sequence No. 55 Name(s) shown on return Identifying number(xxx-xx-xxxx) Derrick Jones Ani Jones 412-34-5670 Note. You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or business, real estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an agricutural or horticultural cooperative. See instructions Use this form if your taxable income, before your qualified business income deduction, is at or below $163,300 ($325,600 it married filing jointly), and you arent a patron of an agricutural or horticutural cooperative (c) Qualified b) Taxpayer business (b) Trade, business, or aggregation name identification number income or (loss) 412-34 Rental Real Estate 5670 8,200 1 i . IV V 8,200 3 4 8,200 1,640 6 7 8 9 9 10 Total qualified business income or loss). Combine lines lithrough 1v. column (c) 2 Qualified business net (loss) carryforward from the prior year (Enter as negative) 3 4 Total Qualified business income. Combine lines 2 and 3. If zero or less, enter - - 5 Qualified business income component, Mutiply line 4 by 20% (0.20) 6 Qualified REIT dividends and publicly traded partnership PTP) income or loss) (see instructions) Qualified REIT dividends and qualified PTP (los) carryforward from the prior year (Enter as negative) 7 Total qualified ReiT dividends and PTP income. Combine lines 6 and 7. If zero or less, erter -- RET and PTP component. Multiply line 8 by 20% (0.20) Qualified business income deduction before the income intation. Add ines 5 and 9 11 Tacable income before qualified business income deduction 12 Net capital gain (see instructions) Subtractine 12 from line 11. If zero or less, enter -- income limitation, Multiply line 13 by 20% (0.20) 15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return 16 Total Qualified business (loss) carryforward. Combine ines 2 and 3. If greater than zero, enter- 17 Total Qualified REIT dividends and PTP (los) carryforward. Combine lines 6 and 7. If greater than zero, enter -.. For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat No. 37808C 10 1,640 11 61,563 12 13 13 61 563 14 14 12,313 1.640 15 (Enter as negative) 16 (Enter as negative) 17 Form 8995 (2020)