HOW MUCH IS TAX? I CAN'T FIGURE IT CORRECTLY.

Irati Comprehensive Problem 4-1 Skylar and Waiter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 528, Las Vegas, NV 89125. Skyler is a stay at home parent and wait is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411- 66-2121), who lives in a nursing home in Reno, N and has no income, Walter's father, Aitor Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas, Although Alten received Social Security benefits of $2,600 in 2020, the Blacks provide over half of Alton's support Skylar and Wait claim a $500 other dependent credit cach for Rebecca and Alten. Walt's earnings from eaching are included on the W-2 (see separate tab) The Blacks moved from Malne to Novado. As a result, they sold their house in Maine on January 4, 2020. The originally paid $75,000 for the home on July 3, 1995, but managed to sell it for $604,000. They spent $14,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home, The Blocks received a 1099-DIV from their mutual fund investments (see seperate tab) The Blacks own a ski condo located at 123 Huncombe Lan, Brian Head, UT #4719. The condo was rented for 18 days during 2020 and used by the Blacks for 15 days. The rental activity does not rise to the level to quality for the Qol deduction pertinent information about the condo rental is as follows: Rental income Mortgage interest reported on Form 1098 $23,700 16,000 Next > Check My Work Rental income $23,700 16,000 5,200 Mortgage Interest reported on Form 1098 Homeowners association dues Utilities Maintenance Depreciation (assume fully depreciated) 3,400 6,600 0 The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. The Blacks received a $2,400 EIP in 2020. Required: Complete Form 1040 and the schedules and forms provided for the Blacks Assume the taxpayers had health coverage for the entire yeas Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "o". Do not round any percentages. If required, round your answers to the nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the Instructions on the tax return, enter all numbers in Part II as positive amounts, OMB No. 1545-0008 Safe, accurate, PASTI Use is e file Visit the IRS wetutet www.ins/lite Employee's social security number 700-01-0002 Employer identification number (EIN) 31-1239867 c Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 1 Wages, tips, other compensation 54,300.00 3 Social security wages 54,300.00 5 Medicare wages and tips 54,300.00 2 Federal income tax withheld 4,100.00 4 Social security tax withheld 3,366.60 6 Medicare tox withheld 787.35 3 Allocated tips 7 Social security tips a Control number 10 Dependent care benefits Surf. 11 Nonqualified plans 12a See instructions for box 12 e Employee's Pirst name and initial Last name Walter Black 883 Scrub Brush Street, Apt. 528 Las Vegas, NV 89125 DD $7,900.00 13 Statutory Retirement Third-party 12b PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. la Total ordinary dividends OMB No. 1545-0010 $ 1,500.00 2020 Cyber Equities Fund 41 Wall Street New York, NY 10005 Dividends and Distributions 1b Qualified dividends $ 1,050.00 Form 1099-DIV 2a Total capital gain distr. 2b Unrecap. Sec. 1250 gain $ 6,700.23 2c Section 1202 gain PAYER'S TIN RECIPIENT'S TIN 2d Collectibles (28%) gain 17-1234326 222-43-7690 RECIPIENTS name 3 Nondividend distributions 4 Federal income tax withheld Skylar B. Black Copy B For Recipient 6 Investment expenses 5 Section 199A dividends (99) 1040 Department of the Treasury Internal Revenue Service U.S. Individual Income Tax Return 2020 OMB No. 1545-0024 IRS Use Only Filing Status Married riling jointly Your first name and middle initial Last name Your social security number Walter Black 700-01.0002 If joint return, spouse's first name and middle initial Last name Spouse's social security number Skylar Black 222-43-7090 Home address (number and street). If you have a P.O. box, nee instructions Apt.no Presidential Election Campaign 883 Scrub Brush Street 528 Check here if you, or your spouse ir City, town, or post office. If you have a foreign address, also complete State ZIP code ning jointly, want to go to this Spaces below NV 09125 rund. Checking a box below will not Las Vegas change your tax or refund None Foreign country name Foreign province/site/country Foreign postal code NO At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial Interest in any virtual currency? Standard Someone can claim: Deduction None You: None Age/Blindness Spouse: None Check My Work Ne (see instructions): (2) Social security number (3) Relationship to you (1) First name Last name Dependents I more than four dependents, so Instructions and check here (4) If quales for (see instructions) Child tax credit Credit for other dependents No Yes Rebecca Baod 411-66-2121 Mother Alton Black 343-22-8899 Father No Yes 1 Wages, salaries, tips, etc. Altach Form(s) W-2 1 54,300 2a Tax-exempt interest 2a b Taxable interest 2b Attach Sch required 3a Qualified dividends Ja 1,050 Ordinary dividends 3b 1,500 4a TRA Cistributions 4a b Taxable amount 4b 5a d Taxable amount 55 Sa Pensions and annuities 6a Social security benefits Taxable amount 6b 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 7 21,700 5 Other income from Schedule 1, line 9 8 -5,160 Standard Deduction for - Single or Married filing separately. $12,400 Married ring jointly op Qualifying 9 72,340 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income 10 Adjustments to income: a From Schedule 1, line 22 10a 10c widow(er). $24,800 - Head of household $18,650 - IT you checked any box under Standard Deduction, see Instructions b Charitable contributions if you take the standard deduction. See Instructions ..... 10b c Add lines 100 and 10b. These are your total adjustments to Income 11 Subtract line 10c from line 9. This is your adjusted gross Income 12 Standard deduction or itemized deductions (from Schedule A). 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 11 72,340 12 24,800 13 14 Add lines 12 and 13 14 24,800 15 47,540 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- er Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate Instructions. Cat. No. 11320B Form 1040 (2020) Om 1040 (2020) 700-01-0002 Walter and Skylar Black Tax (see instructions). Check if any from Form(s): 1 Page 2 16 8814 2 4972 3 16 2,332 X 17 17 Amount from Schedule 2, line 3 Add lines 16 and 17 18 18 19 Child tax credit or credit for other dependents 19 1,000 20 Amount from Schedule 3, line 7 20 Irati Comprehensive Problem 4-1 Skylar and Waiter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 528, Las Vegas, NV 89125. Skyler is a stay at home parent and wait is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411- 66-2121), who lives in a nursing home in Reno, N and has no income, Walter's father, Aitor Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas, Although Alten received Social Security benefits of $2,600 in 2020, the Blacks provide over half of Alton's support Skylar and Wait claim a $500 other dependent credit cach for Rebecca and Alten. Walt's earnings from eaching are included on the W-2 (see separate tab) The Blacks moved from Malne to Novado. As a result, they sold their house in Maine on January 4, 2020. The originally paid $75,000 for the home on July 3, 1995, but managed to sell it for $604,000. They spent $14,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home, The Blocks received a 1099-DIV from their mutual fund investments (see seperate tab) The Blacks own a ski condo located at 123 Huncombe Lan, Brian Head, UT #4719. The condo was rented for 18 days during 2020 and used by the Blacks for 15 days. The rental activity does not rise to the level to quality for the Qol deduction pertinent information about the condo rental is as follows: Rental income Mortgage interest reported on Form 1098 $23,700 16,000 Next > Check My Work Rental income $23,700 16,000 5,200 Mortgage Interest reported on Form 1098 Homeowners association dues Utilities Maintenance Depreciation (assume fully depreciated) 3,400 6,600 0 The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. The Blacks received a $2,400 EIP in 2020. Required: Complete Form 1040 and the schedules and forms provided for the Blacks Assume the taxpayers had health coverage for the entire yeas Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "o". Do not round any percentages. If required, round your answers to the nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the Instructions on the tax return, enter all numbers in Part II as positive amounts, OMB No. 1545-0008 Safe, accurate, PASTI Use is e file Visit the IRS wetutet www.ins/lite Employee's social security number 700-01-0002 Employer identification number (EIN) 31-1239867 c Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 1 Wages, tips, other compensation 54,300.00 3 Social security wages 54,300.00 5 Medicare wages and tips 54,300.00 2 Federal income tax withheld 4,100.00 4 Social security tax withheld 3,366.60 6 Medicare tox withheld 787.35 3 Allocated tips 7 Social security tips a Control number 10 Dependent care benefits Surf. 11 Nonqualified plans 12a See instructions for box 12 e Employee's Pirst name and initial Last name Walter Black 883 Scrub Brush Street, Apt. 528 Las Vegas, NV 89125 DD $7,900.00 13 Statutory Retirement Third-party 12b PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. la Total ordinary dividends OMB No. 1545-0010 $ 1,500.00 2020 Cyber Equities Fund 41 Wall Street New York, NY 10005 Dividends and Distributions 1b Qualified dividends $ 1,050.00 Form 1099-DIV 2a Total capital gain distr. 2b Unrecap. Sec. 1250 gain $ 6,700.23 2c Section 1202 gain PAYER'S TIN RECIPIENT'S TIN 2d Collectibles (28%) gain 17-1234326 222-43-7690 RECIPIENTS name 3 Nondividend distributions 4 Federal income tax withheld Skylar B. Black Copy B For Recipient 6 Investment expenses 5 Section 199A dividends (99) 1040 Department of the Treasury Internal Revenue Service U.S. Individual Income Tax Return 2020 OMB No. 1545-0024 IRS Use Only Filing Status Married riling jointly Your first name and middle initial Last name Your social security number Walter Black 700-01.0002 If joint return, spouse's first name and middle initial Last name Spouse's social security number Skylar Black 222-43-7090 Home address (number and street). If you have a P.O. box, nee instructions Apt.no Presidential Election Campaign 883 Scrub Brush Street 528 Check here if you, or your spouse ir City, town, or post office. If you have a foreign address, also complete State ZIP code ning jointly, want to go to this Spaces below NV 09125 rund. Checking a box below will not Las Vegas change your tax or refund None Foreign country name Foreign province/site/country Foreign postal code NO At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial Interest in any virtual currency? Standard Someone can claim: Deduction None You: None Age/Blindness Spouse: None Check My Work Ne (see instructions): (2) Social security number (3) Relationship to you (1) First name Last name Dependents I more than four dependents, so Instructions and check here (4) If quales for (see instructions) Child tax credit Credit for other dependents No Yes Rebecca Baod 411-66-2121 Mother Alton Black 343-22-8899 Father No Yes 1 Wages, salaries, tips, etc. Altach Form(s) W-2 1 54,300 2a Tax-exempt interest 2a b Taxable interest 2b Attach Sch required 3a Qualified dividends Ja 1,050 Ordinary dividends 3b 1,500 4a TRA Cistributions 4a b Taxable amount 4b 5a d Taxable amount 55 Sa Pensions and annuities 6a Social security benefits Taxable amount 6b 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 7 21,700 5 Other income from Schedule 1, line 9 8 -5,160 Standard Deduction for - Single or Married filing separately. $12,400 Married ring jointly op Qualifying 9 72,340 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income 10 Adjustments to income: a From Schedule 1, line 22 10a 10c widow(er). $24,800 - Head of household $18,650 - IT you checked any box under Standard Deduction, see Instructions b Charitable contributions if you take the standard deduction. See Instructions ..... 10b c Add lines 100 and 10b. These are your total adjustments to Income 11 Subtract line 10c from line 9. This is your adjusted gross Income 12 Standard deduction or itemized deductions (from Schedule A). 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 11 72,340 12 24,800 13 14 Add lines 12 and 13 14 24,800 15 47,540 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- er Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate Instructions. Cat. No. 11320B Form 1040 (2020) Om 1040 (2020) 700-01-0002 Walter and Skylar Black Tax (see instructions). Check if any from Form(s): 1 Page 2 16 8814 2 4972 3 16 2,332 X 17 17 Amount from Schedule 2, line 3 Add lines 16 and 17 18 18 19 Child tax credit or credit for other dependents 19 1,000 20 Amount from Schedule 3, line 7 20