FILL FORM 4952 FOR ME PLS

Tax problem 2

Please complete the 2020 federal income tax return for Bob and Melissa Quinn. Ignore the requirement to attach the forms W2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps.

Bob (age 43) and Melissa (age 53) Quinn are married and live in Lexington Kentucky. The Quinns have two children: Jared, age 15 and Alese, Age 12. The Quinns would like to file a joint tax return for the year.

The following information relates to the Quinns tax year:

• Bobs Social Security number is 987-45-1235. His DOB is 10/14/77
• Melissas Social Security number is 494-37-4893. Her DOB is 4/28/67
• Jareds Social Security number is 412-32-5690. His DOB is 9/22/05
• Aleses Social Security number is 412-32-6940. Her DOB is 6/11/08
• The Quinns mailing address is 95 Hickory Road, Lexington, Kentucky 40502
• Jared and Alese are tax dependents for federal tax purposes

Bob Quinns form W2 provided the following wages and withholding for the year:

Employer	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
National Storage	$65,200	$7,700	$3,550
Lexington Little League	$4,510	0	0

Melissa Quinns Form W2 provided the following wages and withholding for the year:

Employer	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
Jensen Photography	$42,500	$5,250	$2,425

All applicable and appropriate payroll taxes were withheld by the Quinns respective employers. All the Quinn family was covered by minimum essential health insurance during each month in 2020. The insurance was provided by Bobs primary employer, National Storage.

The Quinns also received the following during the year:

Interest Income from First Kentucky Bank	$200
Interest Income from City of Lexington, KY Bond	$550
Interest Income from US Treasury Bond	$800
Interest Income from Nevada State School Board Bond	$250
Workers Compensation payments to Bob	$4,350
Disability payments received by Bob due to injury National Storage paid 100% of the premiums on the policy and included the premium payments in Bobs taxable wages	$3,500

Melissa received the following payments due to a lawsuit she filed for damages sustained in a car accident:

• Medical Expenses for Physical injuries $3,000
• Emotional Distress (from having been physically injured) $11,000
• Punitive Damages $ 9,000

Total $23,000

Eight years ago, Melissa purchased an annuity contract for $88,000. She received her first annuity payment on January 1, 2020. The annuity will pay Melissa $15,000 per year for ten years (beginning this year). The $15,000 payment was reported to Melissa on form 1099-R for the current year (box 4 contained an entry of 7 on the form).

The Quinns did not own, control or manage any foreign bank accounts nor were they grantors or beneficiaries of a foreign trust during the year.

The Quinns paid or incurred the following expenses during the year:

Dentist/Orthodontist (unreimbursed by insurance)	$10,500
Doctor Fees (unreimbursed by insurance)	$ 4,075
Prescriptions (unreimbursed by insurance)	$ 980
KY state tax payments made on 4/15/20 for the 2019 tax return liability	$ 1,425
KY state income taxes withheld during 2020	$ 5,975
Real Property taxes on residence	$ 3,900
Vehicle registration fee based upon age of vehicle	$ 1,350
Mortgage interest on principle residence	$19,500
Interest paid on borrowed money to purchase the City of Lexington, KY municipal bond	$ 400
Interest paid on borrowed money to purchase US Treasury Bonds	$ 250
Contribution to the Red Cross	$ 2,000
Contribution to Senator Rick Hartleys Re-Election Campaign	$ 3,500
Contribution to First Baptist Church of Kentucky	$ 6,000
Fee paid to Jones & Company, CPA for tax preparation	$ 200

In addition, Bob drove 6,750 miles commuting to work and Melissa drove 8,230 miles commuting to work. The Quinns have represented to you that they maintained careful logs to support their respective mileage.

The Quinns drove 465 miles in total to receive medical treatment at a hospital in April.

The Quinns both wanted to contribute to the Presidential Election Campaign Fund. The Quinns would like to receive a refund (if any) of any tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.

Form 4952 Investment Interest Expense Deduction Go to www.irs.gov/Form4952 for the latest information Attach to your tax return. Department of the Treasury Internal Revenue Service (99) Name(s) shown on return OMB No 1545-0191 2020 Attachment Sequence No. 51 Identifying number 1 2 3 4a 4c Part Total Investment Interest Expense 1 Investment interest expense paid or accrued in 2020 (see instructions) 2 Disallowed investment interest expense from 2019 Form 4952, line 7 3 Total investment interest expense. Add lines 1 and 2. Part II Net Investment Income 4a Gross income from property held for investment (excluding any net gain from the disposition of property held for investment) b Qualified dividends included on line 4a 4b c Subtract line 4b from line 4a d Net gain from the disposition of property held for investment 4d e Enter the smaller of line 4d or your net capital gain from the disposition of property held for investment. See instructions 4e f Subtract line 4e from line 4d g Enter the amount from lines 4b and 4e that you elect to include in investment income. See instructions h Investment income. Add lines 4c, 4f, and 4g 5 Investment expenses (see instructions). 6 Net investment income. Subtract line 5 from line 4h. If zero or less, enter - - Part III Investment Interest Expense Deduction 7 Disallowed investment interest expense to be carried forward to 2021. Subtract line 6 from line 3. If zero or less, enter-O- 8 Investment interest expense deduction. Enter the smaller of line 3 or line 6. See instructions For Paperwork Reduction Act Notice, see page 4. Cat. No. 13177Y 4f 4g 4h 5 6 60 7 8 Form 4952 (2020) Form 4952 Investment Interest Expense Deduction Go to www.irs.gov/Form4952 for the latest information Attach to your tax return. Department of the Treasury Internal Revenue Service (99) Name(s) shown on return OMB No 1545-0191 2020 Attachment Sequence No. 51 Identifying number 1 2 3 4a 4c Part Total Investment Interest Expense 1 Investment interest expense paid or accrued in 2020 (see instructions) 2 Disallowed investment interest expense from 2019 Form 4952, line 7 3 Total investment interest expense. Add lines 1 and 2. Part II Net Investment Income 4a Gross income from property held for investment (excluding any net gain from the disposition of property held for investment) b Qualified dividends included on line 4a 4b c Subtract line 4b from line 4a d Net gain from the disposition of property held for investment 4d e Enter the smaller of line 4d or your net capital gain from the disposition of property held for investment. See instructions 4e f Subtract line 4e from line 4d g Enter the amount from lines 4b and 4e that you elect to include in investment income. See instructions h Investment income. Add lines 4c, 4f, and 4g 5 Investment expenses (see instructions). 6 Net investment income. Subtract line 5 from line 4h. If zero or less, enter - - Part III Investment Interest Expense Deduction 7 Disallowed investment interest expense to be carried forward to 2021. Subtract line 6 from line 3. If zero or less, enter-O- 8 Investment interest expense deduction. Enter the smaller of line 3 or line 6. See instructions For Paperwork Reduction Act Notice, see page 4. Cat. No. 13177Y 4f 4g 4h 5 6 60 7 8 Form 4952 (2020)