For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year ... whatever that means. It's been a busy year and l'm a busy man, so let me give you the lowdown on my life and you can do your thing. I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $58,000 in base salary this year. My boss gave me a $6,200 Christmas bonus check on December 22. I decided to hold on to that check and not cash it until next year, so I won't have to pay taxes on it this year. Pretty smart, huh? My job's pretty cool. I get a lot of fringe benefits like a membership to the gym that costs $460 a year and all the Roca Cola I can drink, although I can't really drink a whole lot-l figure $40 worth this year. As part of my manager duties, I get to decide on certain things like contracts for the company. My good buddy, Eddie, runs a bottling company. I made sure that he won the bottling contract for Roca Cola for this year (even though his contract wasn't quite the best). Eddie bought me a Corvette this year for being such a good friend. The Corvette cost $62,000, and I'm sure he bought it for me out of the goodness of his heart. What a great guy! Here's a bit of good luck for the year. Upon leaving my office one day, I found $8,600 lying in the street! Well, one person's bad luck is my good luck, right? I like to gamble a lot. I won a $28,800 poker tournament in Las Vegas this year. I also won about $5,240 over the year playing the guys at our Friday night poker game. Can you believe that I didn't lose anything this year? Speaking of the guys, one of them hit me with his car as we were leaving the game one night. He must have been pretty ticked that he lost! I broke my right leg and my left arm. I sued the guy and got $13,400 for my medical expenses and $3,600 to pay my psychotherapist for the emotional problems I had relating to the injuries (I got really depressed!), and I won $13,200 in punitive damages. That'll teach him that he's not so tough without his car! Another bit of bad luck. My uncle Monty died this year. I really liked the guy, but the $260,000 inheritance I received from him made me feel a little better about the loss. I did the smart thing with the money and invested it in stocks and bonds and socked a little into my savings account. As a result, I received $660 in dividends from the stock, $260 in interest from the municipal bonds, and $360 in interest from my savings account. My ex-wife, Alice, is still paying me alimony. She's a lawyer who divorced me in 2015 because I was "unethical" or something like that. Because she was making so much money and I was unemployed at the time, the judge ruled that she had to pay ME alimony. Isn't that something? She sent me $4,200 in alimony payments this year. She still kind of likes me, though. She sent me a check for $560 as a Christmas gift this year. I didnt get her anything, though. So there you go. That's this year in a nutshell. Can you figure out my gross income and complete page 1 of Form 1040 (through line 7b ) and Schedule 1 for me? And because you're a student, this is free, right? Thanks, I owe you one! Let me Form 1040 (2019) Page 2 12a Tax (see inst.) Check if any from Form(s): 1 88142 49723 12a b Add Schedule 2, line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents 13a b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero or less, enter -0 - 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: - If you have a qualifying child, attach Sch. EIC. - If you have nontaxable combat pay, see instructions. a Earned income credit (EIC). b Additional child tax credit. Attach Schedule 8812 c American opportunity credit from Form 8863, line 8 d Schedule 3 , line 14 e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments. 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here b Routing number d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions). 24 Third Party Designee (Other than paid preparer) Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Designee's name Phone no. - c Type: Checking 22 Sign correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Joint return? See instructions. Keep a copy for your records. Your signature Personal identification number (PIN) Yes. Complete below. No No Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019) b-2. Complete Schedule 1 of Form 1040. a. Calculate the gross income. b-1. Complete page 1 of Form 1040 (through line 8b). Download the Tax Form and enter the required values in the appropriate fields. At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Part II Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE . 15 Self-employed SEP, SIMPLE, and qualified plans . 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid. b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and fees. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year ... whatever that means. It's been a busy year and l'm a busy man, so let me give you the lowdown on my life and you can do your thing. I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $58,000 in base salary this year. My boss gave me a $6,200 Christmas bonus check on December 22. I decided to hold on to that check and not cash it until next year, so I won't have to pay taxes on it this year. Pretty smart, huh? My job's pretty cool. I get a lot of fringe benefits like a membership to the gym that costs $460 a year and all the Roca Cola I can drink, although I can't really drink a whole lot-l figure $40 worth this year. As part of my manager duties, I get to decide on certain things like contracts for the company. My good buddy, Eddie, runs a bottling company. I made sure that he won the bottling contract for Roca Cola for this year (even though his contract wasn't quite the best). Eddie bought me a Corvette this year for being such a good friend. The Corvette cost $62,000, and I'm sure he bought it for me out of the goodness of his heart. What a great guy! Here's a bit of good luck for the year. Upon leaving my office one day, I found $8,600 lying in the street! Well, one person's bad luck is my good luck, right? I like to gamble a lot. I won a $28,800 poker tournament in Las Vegas this year. I also won about $5,240 over the year playing the guys at our Friday night poker game. Can you believe that I didn't lose anything this year? Speaking of the guys, one of them hit me with his car as we were leaving the game one night. He must have been pretty ticked that he lost! I broke my right leg and my left arm. I sued the guy and got $13,400 for my medical expenses and $3,600 to pay my psychotherapist for the emotional problems I had relating to the injuries (I got really depressed!), and I won $13,200 in punitive damages. That'll teach him that he's not so tough without his car! Another bit of bad luck. My uncle Monty died this year. I really liked the guy, but the $260,000 inheritance I received from him made me feel a little better about the loss. I did the smart thing with the money and invested it in stocks and bonds and socked a little into my savings account. As a result, I received $660 in dividends from the stock, $260 in interest from the municipal bonds, and $360 in interest from my savings account. My ex-wife, Alice, is still paying me alimony. She's a lawyer who divorced me in 2015 because I was "unethical" or something like that. Because she was making so much money and I was unemployed at the time, the judge ruled that she had to pay ME alimony. Isn't that something? She sent me $4,200 in alimony payments this year. She still kind of likes me, though. She sent me a check for $560 as a Christmas gift this year. I didnt get her anything, though. So there you go. That's this year in a nutshell. Can you figure out my gross income and complete page 1 of Form 1040 (through line 7b ) and Schedule 1 for me? And because you're a student, this is free, right? Thanks, I owe you one! Let me Form 1040 (2019) Page 2 12a Tax (see inst.) Check if any from Form(s): 1 88142 49723 12a b Add Schedule 2, line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents 13a b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero or less, enter -0 - 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: - If you have a qualifying child, attach Sch. EIC. - If you have nontaxable combat pay, see instructions. a Earned income credit (EIC). b Additional child tax credit. Attach Schedule 8812 c American opportunity credit from Form 8863, line 8 d Schedule 3 , line 14 e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments. 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here b Routing number d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions). 24 Third Party Designee (Other than paid preparer) Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Designee's name Phone no. - c Type: Checking 22 Sign correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Joint return? See instructions. Keep a copy for your records. Your signature Personal identification number (PIN) Yes. Complete below. No No Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019) b-2. Complete Schedule 1 of Form 1040. a. Calculate the gross income. b-1. Complete page 1 of Form 1040 (through line 8b). Download the Tax Form and enter the required values in the appropriate fields. At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Part II Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE . 15 Self-employed SEP, SIMPLE, and qualified plans . 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid. b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and fees. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019