Question
I need help on the 1040 Tax form for the 2019 Year. specifically Lines 13a, 13b, 14, 16, 20, and 21a. I have all the
I need help on the 1040 Tax form for the 2019 Year. specifically Lines 13a, 13b, 14, 16, 20, and 21a. I have all the other answers correct for this problem. I don't know how to calculate the amounts. I will attach a picture at the bottom of the 1040 Form and which lines I am talking about.
Note: This problem is for the 2019 tax year.
Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alice's birthday is September 21, 1972, and Bruce's is June 27, 1971. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification Number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (Employer Identification Number 11-1111111).
The following information is shown on their Wage and Tax Statements (Form W2) for 2019.
LineDescriptionAliceBruce1Wages, tips, other compensation$58,000$62,1002Federal income tax withheld4,5005,3003Social Security wages58,00062,1004Social Security tax withheld3,5963,8505Medicare wages and tips58,00062,1006Medicare tax withheld84190015StateMassachusettsMassachusetts16State wages, tips, etc.58,00062,10017State income tax withheld2,9503,100
The Byrds provide over half of the support of their two children, Cynthia (born January 25, 1995, Social Security number 123-45-6788) and John (born February 7, 1999, Social Security number 123-45-6780). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $6,200 from a summer internship in 2019, and John earned $3,800 from a part-time job.
During 2019, the Byrds provided 60% of the total support of Bruce's widower father, Sam Byrd (born March 6, 1943, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam's life, received life insurance proceeds of $1,600,000 on December 28.
The Byrds had the following expenses relating to their personal residence during 2019:
Real estate property taxes$5,000Qualified interest on home mortgage8,700Repairs to roof5,750Utilities4,100Fire and theft insurance1,900
The Byrds had the following medical expenses for 2019:
Medical insurance premiums$4,500Doctor bill for Sam incurred in 2018 and not paid until 20197,600Operation for Sam8,500Prescription medicines for Sam900Hospital expenses for Sam3,500Reimbursement from insurance company, received in 20193,600
The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support.
Other relevant information follows:
- When they filed their 2018 state return in 2019, the Byrds paid additional state income tax of $900.
- During 2019, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50.
- The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition.
- Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65).
- In 2019, the Byrds received interest income of $2,750, which was reported on a Form 1099INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 (Employer Identification Number 98-7654322).
- The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, P.O. Box 1000, Lowell, MA 01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1, 2019) was taken out by the Byrds on May 1, 2015.
- Alice's employer requires that all employees wear uniforms to work. During 2019, Alice spent $850 on new uniforms and $566 on laundry charges.
- Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association.
- Neither Alice's nor Bruce's employer reimburses for employee expenses.
- The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax.
- This year the Byrds gave each of their children $2,000, which was then deposited into their Roth IRAs.
- Alice and Bruce paid no estimated Federal income tax, and they did not engage in any virtual currency transactions during the year. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund.
Required:Compute net tax payable or refund due for Alice and Bruce Byrd for 2019. If they have overpaid, they want the amount to be refunded to them.
- Make realistic assumptions about any missing data.
- If an amount box does not require an entry or the answer is zero, enter "0".
- Enter all amounts as positive numbers.
- It may be necessary to complete the tax schedules before completing Form 1040.
- When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar.
Instructions Form 1040 Schedule A Schedule B 2019 Tax Rate Schedules Tax Planning for 2020 Fom 1040 Complete the Byrd's Form 1040 for 2019, Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only Filing Status Married filing jointly Last name Your first name and middle initial Bruce M. Byrd Last name If joint return, spouse's first name and middle initial Alice). Byrd Apt. no. Home address (number and street). If you have a P.O. box, see instructions. 473 Revere Avenue Your social security number 111-11-1113 Spouse's social security number 123-45-6784 Presidential Election Campaign Check here if you, or your spouse ir riling jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. None City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Lowell, MA 01850 Foreign country name Foreign province/State/county Foreign postal code If more than four dependents, see instructions and here Standard Deduction Someone can claim: None Age/Blindness You: None Spouse: None (2) Social Security number (3) Relationship to you Dependents (see instructions): (1) First name Last name (4) / if qualifies for (see instructions): Child tax credit Credit for other dependents Yes John Byrd 123-45-6780 Child Cynthia Bryd 123-45-6788 Child No Sam Byrd 123-45-6787 Parent Yes 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 120,100 b 2a Tax-exempt interest .. 2a 2b 2,750 Taxable interest. Attach Sch. B if required Ordinary dividends. Attach Sch. B if required b 3a Qualified dividends... 3b 4a IRA distributions ..... b Taxable amount 4b 4d 5b . Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widower) $24,400 Head of household, $18,350 If you checked any box under Standard c Pensions and annuities 4c d Taxable amount 5a Social security benefits 5a b Taxable amount 6 Capital gain or loss). Attach Schedule D if required. If not required, check here 7a Other income from Schedule 1, line 9 6 7a b Add lines 1, 2, 3, 4, 40, 50, 6, and 7a. This is your total income 7b 122,850 8a Adjustments to income from Schedule 1, line 22 Ba b Subtract line 8a from line 7b. This is your adjusted gross income Bb 122,850 9 Standard deduction or itemized deductions (from 9 my Dome Standard Deduction, see instructions. Standard deduction or itemized deductions (from Schedule A). 36,486 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A.. 10 11a Add lines 9 and 10.. 11a 36,486 Taxable income. Subtract line 11a from line Bb. If zero or less, enter-O-. 11b 86,364 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019) Form 1040 (2019) 111-11-1113 Page 2 Bruce M. and Alice ). Byrd 12a Tax (see inst.) Check if any from Form(s): 18814 2 4972 30 12a 10,717 b Add Schedule 2, line 3, and line 12a and enter the total 12b 10,717 13a Child tax credit or credit for other dependents 4,200 x 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 4,200 x 14 Subtract line 13b from line 12b. If zero or less, enter-O- 14 6,517 X 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax 16 6,517 x 17 Federal income tax withheld from Forms W-2 and 1099 17 9,800 If you have a qualifying child attach Sch. EIC. If you have nontaxable combat pay, see instructions. 18 Other payments and refundable credits: a Earned income credit (EIC).. Additional child tax credit. Attach Schedule 8812 b 18a 18b American opportunity credit from Form 8863, line 8. 18c Schedule 3, line 14... 18d e Add lines 1 Ba through 18d. These are your total other payments and refundable credits 18e 19 Add lines 17 and 18e. These are your total payments 19 9,800 20 Refund If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 20 3,283 X 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a 0 X Direct deposit? Routing number Type: Checking Savings See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions.. 23 You Owe 24 Estimated tax penalty (see instructions) 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with Yes. Complete below. the IRS? See instructions. No Designee (Other than Designee's Phone Personal identification
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