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I need help to solve the following problems . I need to know how to do them in the tax forms A. FORM 1040: INCOME

I need help to solve the following problems . I need to know how to do them in the tax forms

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A. FORM 1040: INCOME TAX RETURN FOR SINGLE FILER WITH NO DEPENDENTS Marissa Mckinley, age 28, is single, not blind and claims no dependents. Marissa may not be claimed as a dependent on another person's tax return. During 2019, she earned $52,000 [ to Form 1040, line 1 ] as a police officer, from which $8,240 was withheld in federal income tax [ to Form 1040, line 16 ] and $1,430 was withheld in Illinois income tax. Marissa received $300 in interest income from State Bank [ to Form 1040, line 2 (b) ], a U.S. financial institution. She wants $3 of his tax to go to the Presidential Election Campaign Fund. Marissa resides at 1330 W. Fargo, Chicago, Illinois 60626, her social security number is 405-64-8098, and her daytime telephone number is 312-555-3232. She elects to have any refund directly deposited to her checking account. Her bank's routing number is 071000013 and her account number is 00900800. a. What is Marissa's taxable income for 2019? b. What is Marissa's tax liability for 2019? c. Prepare the simplest form for Marissa to file for 2019 [ Form 1040 ] . Notes: (1) See pages 6 to 12 of IRS Publ. 17 for assistance with the topic "Preparing a Tax Return" [ IRS.gov ]. 2) Explain why any amounts above were not included in your calculation. (3) To get blank forms, click the "IRS" or "Blank Forms" button in Blackboard. PROBLEM 2 (7 POINTS) Liz and Doug were divorced on July 1 of the current year after 10 years of marriage. Their current year's income received before the divorce was as follows: Doug's salary $41,000 Liz's salary 55,000 Rent on apartments purchased by Liz 15 years ago 8,000 Dividends on stock Doug inherited from his mother 4 years ago 1,900 Interest on a savings account in Liz's name funded with her salary 2,400 Allocate the income to Liz and Doug assuming they live in: a. California b. Texas Notes: (1) See pages 4-6 of your CCH textbook for assistance with this topic. (2) Explain why any amounts above were not included in your calculation. PROBLEM 3 (15 POINTS) Archie S. Monroe (Social Security number 363-33-1411) is 35 years old and is married to Annie B. Monroe (Social Security number 259-68-4284). The Monroes live at 215 Adams Dr., Thor, VA 24317. They file a joint return and have two dependent children (Barry and Betty). In 2019, Archie and Annie had the following transactions: - Continued on Backside -a. Salary received by Archie from Allen Steel Company (Archie is vice president). [ to Form 1040, line 1 ] $84,000 b. Interest received on jointly owned State of Nebraska bonds. 9,000 [ any taxable interest to Form 1040, line 2(b) and dividends to line 3(b) c. Group term life insurance premiums paid by Archie's employer (Coverage of $72,000) . [Paid by Company] 250 [ any taxable amount to Form 1040, Schedule 1, line 2 (Other Income) ] d. Annual increment in the value of Series EE government savings bonds (The Monroes have not previously included the accrued amounts in gross income). 450 e. Taxable dividends received from Dove Steel Company, a U.S. corporation (The stock was jointly owned). Of the $6,300 in dividends, $1,000 was mailed December 31, 2019, and received by Archie and Annie on January 4, 2020. 6,300 [ any taxable interest to Form 1040, line 2(b) and dividends to line 3(b) ] f. Award received by Annie for outstanding community service in Thor. 1,000 [ any taxable amount to Form 1040, Schedule 1, line 2 (Other Income) ] g. Proceeds from sale of Pigeon, Inc., stock on November 3, 2019. The adjusted basis (i.e. cost) of the stock, which had been purchased on June 1, 2019, is $5,000. [ Put gain or loss on line 13, Form 1040 ]. 7,000 any taxable amount to Form 1040, Schedule 1, line 13 (Capital Gain) ] h. Alimony payments to Archie's former wife (Rosa T. Monroe, Social Security number 800-60-2580) under a 2017 divorce decree. 12,000 [ any deductible amount to Form 1040, Schedule 1, line 31 (a) ] I. Itemized deductions: State income tax 4, 150 Real estate tax on residence 4,800 Interest on personal residence (paid to Thor Federal Savings) 8,300 Cash contribution to church 9,150 j. Federal income tax withheld [ include on line 16 of Form 1040 ] 12,500 Notes: (1) Assume all itemized deductions are deductible without limitation. (2) Explain why any amounts above were not included in your calculation. (3) Show all computations on a supporting schedule. (4) See pages 5-1 1 to 5-12 of the textbook for a discussion on the tax treatment of the group term life insurance. (5) See page 5-6 of the textbook for a discussion on the tax treatment of the Series EE government savings bonds. (6) Complete pages 1 and 2 of Form 1040 and Schedules 1, A & B for 2019 [ we will use the year 2018 tax forms ]. (a) An example of the Form 1040, is discussed and shown, with line by line help, is on pages 3 to 33 (scan only) & (b) Pgs A-1 to A-6 (for Sch A), in the 2018 Form 1040 Instruction Book for both, [ Book was issued at the first class day session; or go to IRS.gov ] ; Also, (c) For Schedule B, see the rear side of Schedule B for instructions & help. (7) Other social security numbers are: Barry, 237-67-1111 & Betty, 334-09-7800. (8) They are 9 and 1 1 years old, respectively. Enter $4,000 on Form 1040, line 12 for child tax credit [$2,000 per child]. We will discuss this topic at a later date (see pg 9-6 of text or pg 223 of Publ 17, if needed). 2

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