Group 5: Cumulative Software Problem

• 1.

  The following additional information is available for the family of Albert and Allison Gaytor.

  In 2020, Albert received a Form W-2 from his employer, Coconut Grove Fishing Charters, Inc. (hint: slightly modified from Chapter 1):

  In addition to the interest from Chapter 1, Albert and Allison also received three Forms 1099:

  The Gaytors also received interest of $800 from bonds issued by the Miami-Dade County Airport Authority (Form 1099 not shown).

  Albert went to the casino on his birthday and won big, as reflected on the following Form W-2G:

  Albert had no other gambling income or losses for the year.

  In February, Allison received $50,000 in life insurance proceeds from the death of her friend, Sharon.

  In July, Alberts uncle Ivan died and left him real estate (undeveloped land) worth $72,000.

  Five years ago, Albert and Allison divorced. Albert married Iris, but the marriage did not work out and they divorced a year later. Under the July 1, 2016 divorce decree, Albert pays Iris $11,500 per year in alimony. All payments were on time in 2020 and Iris Social Security number is 667-34-9224. Three years ago, Albert and Allison were remarried.

  Coconut Fishing Charters, Inc. pays Alberts captains license fees and membership dues to the Charter Fishermans Association. During 2020, Coconut Fishing paid $1,300 for such dues and fees for Albert.

  Allison was laid off from her job on January 2, 2020. She received a Form 1099-G for unemployment benefits:

  Albert and his family are covered by an employee-sponsored health plan at his work. Coconut Fishing pays $700 per month in premiums for Albert and his family. During the year, Allison was in the hospital for appendix surgery. The bill for the surgery was $10,100 of which the health insurance reimbursed Albert the full $10,100.

  Coconut Fishing also pays for Alberts parking at the marina. The monthly cost is $270.

  Required: Combine this new information about the Gaytor family with the information from Chapter 1 and complete a revised 2020 tax return for Albert and Allison. Be sure to save your data input files since this case will be expanded with more tax information in later chapters.