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For this example problem, how would you file a return with this scenario? Amanda Shires - 2020 Federal Income Tax Return Amanda Shires lives at

For this example problem, how would you file a return with this scenario? image text in transcribed image text in transcribed image text in transcribed image text in transcribed

Amanda Shires - 2020 Federal Income Tax Return Amanda Shires lives at 818 Fiddle Lane, Mussel Shoals, Alabama. She and her husband, Jason, got married in 2011, but they divorced in June of 2020. Amanda has not remarried. Amanda has lived in a condominium that she rents from a local landlord since the divorce. Per her divorce decree with Jason, executed in June of 2020, she has custody of their five-year-old daughter, Mercy. While Mercy occasionally visits her dad on the weekends, she spends most of her time living with Amanda in the condo. The divorce decree stipulates that Jason must pay $12,000 in alimony to Amanda each year as long as she remains alive and single. It further stipulates that Jason must pay child support for Mercy. In 2020, he paid $9,000 of child support and $6,000 in alimony. The decree gives Jason the right to claim the dependency exemption for Mercy, and any associated credits, as long as Mercy is eligible to be a dependent of either parent. Amanda has already filed the necessary forms to make sure this happens. Amanda is a US citizen. She would like to receive any tax refund she is owed via check. She has informs you that she has no interests in foreign bank accounts or foreign trusts, and that she would not like to contribute to the Presidential Election Campaign. Amanda's family information is listed in the below table: Amanda's family information is listed in the below table: Name Age SSN Amanda 39 123-45-5678 Mercy 5 234-56-7890 During the year, Amanda worked for various companies. All appropriate payroll taxes were withheld by her employers. The Forms W-2 that Amanda received contain the following information: Employer Gross Wages Federal Income Tax Withholding State Income Tax Withholding Being Brave, Inc. $9,500 $5,000 $1,700 $1,500 West Cross Timbers, LLC To The Sunset, LLC $20,500 $11,000 $1,900 $1,250 $1,000 In addition, Amanda received the following income during the year: Type of Income Amount Interest income from U.S. Treasury Bonds $500 Interest income from First Bank of Sea Songs $175 $385 Interest income from a City of Florence Bond Life insurance proceeds on the death of her grandfather $41,000 Also, Amanda is a 40% owner of 400 Unit, Inc., which is an S-corporation that reported $22,500 of ordinary business income in 2020. She has held her interest in the company for 12 years. Amanda is not considered a passive investor in the company. 400 Unit's Employer Identification Number (EIN) is 13-49622587. 1 During the year, West Cross Timbers, LLC, provided Amanda with $48,000 of group-term life insurance coverage. This cost the company $144. In October, due to a downturn in the economy, Amanda lost her jobs at Being Brave, West Cross Timbers, and To The Sunset. She then went on unemployment and received a total of $1,800 in 2020. She has been searching for a new job ever since. In December, Amanda won two tickets to the Americana Music Hall of Fame Gala, which took place in Austin, Texas. She won the tickets from a local radio station. Each ticket was worth $1,000. There was no withholding During the year, West Cross Timbers, LLC, provided Amanda with $48,000 of group-term life insurance coverage. This cost the company $144. In October, due to a downturn in the economy, Amanda lost her jobs at Being Brave, West Cross Timbers, and To The Sunset. She then went on unemployment and received a total of $1,800 in 2020. She has been searching for a new job ever since. In December, Amanda won two tickets to the Americana Music Hall of Fame Gala, which took place in Austin, Texas. She won the tickets from a local radio station. Each ticket was worth $1,000. There was no withholding on this amount at the time Amanda received the tickets. Finally, Amanda informs you that she and Mercy had qualifying minimum health insurance coverage for the whole year. Note: You may assume that there are no penalties for underpayments, late payments, or late filing. You may also ignore any alternative minimum tax implications. Finally, you do not need to prepare a Schedule K-1 for Amanda's interest in 400 Unit, Inc. Amanda Shires - 2020 Federal Income Tax Return Amanda Shires lives at 818 Fiddle Lane, Mussel Shoals, Alabama. She and her husband, Jason, got married in 2011, but they divorced in June of 2020. Amanda has not remarried. Amanda has lived in a condominium that she rents from a local landlord since the divorce. Per her divorce decree with Jason, executed in June of 2020, she has custody of their five-year-old daughter, Mercy. While Mercy occasionally visits her dad on the weekends, she spends most of her time living with Amanda in the condo. The divorce decree stipulates that Jason must pay $12,000 in alimony to Amanda each year as long as she remains alive and single. It further stipulates that Jason must pay child support for Mercy. In 2020, he paid $9,000 of child support and $6,000 in alimony. The decree gives Jason the right to claim the dependency exemption for Mercy, and any associated credits, as long as Mercy is eligible to be a dependent of either parent. Amanda has already filed the necessary forms to make sure this happens. Amanda is a US citizen. She would like to receive any tax refund she is owed via check. She has informs you that she has no interests in foreign bank accounts or foreign trusts, and that she would not like to contribute to the Presidential Election Campaign. Amanda's family information is listed in the below table: Amanda's family information is listed in the below table: Name Age SSN Amanda 39 123-45-5678 Mercy 5 234-56-7890 During the year, Amanda worked for various companies. All appropriate payroll taxes were withheld by her employers. The Forms W-2 that Amanda received contain the following information: Employer Gross Wages Federal Income Tax Withholding State Income Tax Withholding Being Brave, Inc. $9,500 $5,000 $1,700 $1,500 West Cross Timbers, LLC To The Sunset, LLC $20,500 $11,000 $1,900 $1,250 $1,000 In addition, Amanda received the following income during the year: Type of Income Amount Interest income from U.S. Treasury Bonds $500 Interest income from First Bank of Sea Songs $175 $385 Interest income from a City of Florence Bond Life insurance proceeds on the death of her grandfather $41,000 Also, Amanda is a 40% owner of 400 Unit, Inc., which is an S-corporation that reported $22,500 of ordinary business income in 2020. She has held her interest in the company for 12 years. Amanda is not considered a passive investor in the company. 400 Unit's Employer Identification Number (EIN) is 13-49622587. 1 During the year, West Cross Timbers, LLC, provided Amanda with $48,000 of group-term life insurance coverage. This cost the company $144. In October, due to a downturn in the economy, Amanda lost her jobs at Being Brave, West Cross Timbers, and To The Sunset. She then went on unemployment and received a total of $1,800 in 2020. She has been searching for a new job ever since. In December, Amanda won two tickets to the Americana Music Hall of Fame Gala, which took place in Austin, Texas. She won the tickets from a local radio station. Each ticket was worth $1,000. There was no withholding During the year, West Cross Timbers, LLC, provided Amanda with $48,000 of group-term life insurance coverage. This cost the company $144. In October, due to a downturn in the economy, Amanda lost her jobs at Being Brave, West Cross Timbers, and To The Sunset. She then went on unemployment and received a total of $1,800 in 2020. She has been searching for a new job ever since. In December, Amanda won two tickets to the Americana Music Hall of Fame Gala, which took place in Austin, Texas. She won the tickets from a local radio station. Each ticket was worth $1,000. There was no withholding on this amount at the time Amanda received the tickets. Finally, Amanda informs you that she and Mercy had qualifying minimum health insurance coverage for the whole year. Note: You may assume that there are no penalties for underpayments, late payments, or late filing. You may also ignore any alternative minimum tax implications. Finally, you do not need to prepare a Schedule K-1 for Amanda's interest in 400 Unit, Inc

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