In June 2019 Phillip and Barbara Jones are married, filing a joint return, and their two dependent children, who are both over 17, moved from Chicago to Albuquerque, New Mexico, a distance of 1,327 miles, which they drove in their own car. The children's names are Roger and Gwen and both will be attending the University of New Mexico in the fall, Roger as a freshman and Gwen as a junior. The move was a result of a civilian job transfer for Phillip. The distance from their old home to Phillip's old office was 30 miles. Barbara quit her job in Chicago and decided to perform volunteer work for a year before seeking further employment. Their new home is located at 7432 Desert Springs Way, Albuquerque, NM 87101. Phillip, but not Barbara, was employed in the new location throughout the year. Phillip's social security number is 412-34-5670 (date of birth 6/12/1977), Barbara's is 412-34-5671 (date of birth 8/12/1979), Roger's is 412- 34-5672 (date of birth 2/17/2002), and Gwen's is 412-34-5673 (date of birth 9/14/2000). Phillip is a civil engineer for a national firm; his W-2 contained the following information: Wages (box 1) = $110,220.45 Federal w/H (box 2) $ 10,015.42 Social security wages (box 3) $110, 220.45 Social security W/H (box 4) = $ 6,833.67 Medicare wages (box 5) $110, 220.45 Medicare W/H (box 6) = $ 1,598.20 In addition, both he and Barbara received Forms 1098-E from the federal student loan program. Phillip had student loan interest of $1,050, and Barbara had student loan interest of $750. The children are both eligible for the Credit for Other Dependents and as a result $1,000 will go on line 13a of pg. 2 of the Form 1040. Required: Prepare a Form 1040, Student Loan Interest Deduction Worksheet, and a Schedule 1 for Phillip and Barbara. If manually preparing the return, the Student Loan Interest Deduction worksheet can be found in IRS Publication 970, Tax Benefits for Education. They are entitled to a $500 credit for each child as a qualifying dependent under the new Family Tax Credit. (List the names of the taxpayers in the order in which they appear in the problem. Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms.) Department of the TreasuryInternal Form 1040 Revenue Service (99) 2019 OMB No. 1545-0074 IRS Use Only Do not write or staple in this s U.S. Individual Income Tax Return Filing Status Single O Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box. a child but not your dependent Your first name and middle initial Last name Your social security number (Ente If joint return, spouse's first name and middle initial Last name Spouse's social security number xxxx) Home address (number and street). If you have a P.O. box, see instructions. Apt. no Presidential Election Can Check here if you, or your spouse if fili to go to this fund. Checking a box belo your tax or refund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). You | Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see inst and here Standard Someone can claim: You as a dependent | Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was bom before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number 2 (3) Relationship to you (4) if qualifies for (see instructi (1) First name Last name (Enter as XXX-XX-XXXX) Child tax credit Credit for other 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a 2b 3a Qualified dividends b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required b Taxable amount 3b 4b d Taxable amount 4d b Taxable amount b 5b 4a IRA distributions 4a Standard Deduction for- Pensions and annuities 4c Single or Married iling separately, 5a Social security benefits 5a $12,200 Married filing 6 Capital gain or loss). Attach Schedule D if required. If not required, check here ointly or Qualifying 7a Other income from Schedule 1, line 9 vidow(er). $24.400 b Add lines 1, 2, 3, 4b, 4d, 5b, 6, and 7a. This is your total income Head of household Ra Adinstments to income from Schedule 1 line 29 6 7a 7b Ra required b Taxable amount 4b d Taxable amount 4d b Taxable amount b 5b 6 7a 4a IRA distributions 4a Standard Deduction for- Pensions and annuities 4c Single or Married filing separately, 5a Social security benefits 5a $12.200 Married filing 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here jointly or Qualifying 7a Other income from Schedule 1, line 9 widow(er), $24.400 . Head of b Add lines 1, 2, 3, 4b, 40, 56, 6, and 7a. This is your total income household, $18,350 8a Adjustments to income from Schedule 1, line 22 . If you checked any box under b Subtract line Ba from line 7b. This is your adjusted gross income Standard Deduction, see 9 Standard deduction or itemized deductions (from Schedule A) () instructions. 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 7b 8a 8b 9 10 11a 11a Add lines 9 and 10 b Taxable income. Subtract line 11a from line 8b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 11b Cat. No. 11320B 12a 12b 13a 13b 14 15 16 17 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4972 (3) b Add Schedule 2, line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 120. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC) b Additional child tax credit. Attach Schedule 8812 c American opportunity credit from Form 8863, line 8 d Schedule 3, line 14 e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check 18a 18b 18c 18d 18e 19 20 21a here Routing number c Type: Checking Savings d Account number 22 23 22 Amount of line 20 you want applied to your 2020 estimated tax 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. 24 Yes. Complete below. No Designee's Phone Personal identification name no. number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature If the IRS sent you an Identity Date Your occupation Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: 3rd Party Designee Self-employed Firm's name Phone no. 1 1 2a 2a b 3 3 4 Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F Unemployment compensation Other income. List type and amount | 4 5 5 6 6 7 7 8 8 9 9 Part II 10 10 11 11 12 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a Adjustments to Income Educator expenses Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction 12 13 13 14 14 15 15 16 16 17 17 18a 18a b Penalty on early withdrawal of savings Alimony paid Recipient's SSN Date of original divorce or separation agreement (see instructions) IRA deduction Student loan interest deduction Reserved for future use 19 19 20 20 21 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 | Enter the total interest you paid in 2019 on qualified student loans. Don't enter more than $2,500 Enter the amount from Form 1040 or 1040-SR, line 7 21 Enter the total of amounts from Schedule 1, line 10 through 19, plus any write-in adjustments you entered on the dotted line next to Schedule 1, line 22 31 Subtract line 3 from line 2 4 Enter the amount shown below for your filing status. Single, head of household, or qualifying widow(er)-$70,000 Married filing jointly$140,000 5 Is the amount on line 4 more than the amount on line 5? No. Skip lines 6 and 7, enter-O- on line 8, and go to line 9. Yes. Subtract line 5 from line 4 Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 Multiply line 1 by line 7 Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on Schedule line 20. Don't include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.) In June 2019 Phillip and Barbara Jones are married, filing a joint return, and their two dependent children, who are both over 17, moved from Chicago to Albuquerque, New Mexico, a distance of 1,327 miles, which they drove in their own car. The children's names are Roger and Gwen and both will be attending the University of New Mexico in the fall, Roger as a freshman and Gwen as a junior. The move was a result of a civilian job transfer for Phillip. The distance from their old home to Phillip's old office was 30 miles. Barbara quit her job in Chicago and decided to perform volunteer work for a year before seeking further employment. Their new home is located at 7432 Desert Springs Way, Albuquerque, NM 87101. Phillip, but not Barbara, was employed in the new location throughout the year. Phillip's social security number is 412-34-5670 (date of birth 6/12/1977), Barbara's is 412-34-5671 (date of birth 8/12/1979), Roger's is 412- 34-5672 (date of birth 2/17/2002), and Gwen's is 412-34-5673 (date of birth 9/14/2000). Phillip is a civil engineer for a national firm; his W-2 contained the following information: Wages (box 1) = $110,220.45 Federal w/H (box 2) $ 10,015.42 Social security wages (box 3) $110, 220.45 Social security W/H (box 4) = $ 6,833.67 Medicare wages (box 5) $110, 220.45 Medicare W/H (box 6) = $ 1,598.20 In addition, both he and Barbara received Forms 1098-E from the federal student loan program. Phillip had student loan interest of $1,050, and Barbara had student loan interest of $750. The children are both eligible for the Credit for Other Dependents and as a result $1,000 will go on line 13a of pg. 2 of the Form 1040. Required: Prepare a Form 1040, Student Loan Interest Deduction Worksheet, and a Schedule 1 for Phillip and Barbara. If manually preparing the return, the Student Loan Interest Deduction worksheet can be found in IRS Publication 970, Tax Benefits for Education. They are entitled to a $500 credit for each child as a qualifying dependent under the new Family Tax Credit. (List the names of the taxpayers in the order in which they appear in the problem. Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms.) Department of the TreasuryInternal Form 1040 Revenue Service (99) 2019 OMB No. 1545-0074 IRS Use Only Do not write or staple in this s U.S. Individual Income Tax Return Filing Status Single O Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box. a child but not your dependent Your first name and middle initial Last name Your social security number (Ente If joint return, spouse's first name and middle initial Last name Spouse's social security number xxxx) Home address (number and street). If you have a P.O. box, see instructions. Apt. no Presidential Election Can Check here if you, or your spouse if fili to go to this fund. Checking a box belo your tax or refund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). You | Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see inst and here Standard Someone can claim: You as a dependent | Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was bom before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number 2 (3) Relationship to you (4) if qualifies for (see instructi (1) First name Last name (Enter as XXX-XX-XXXX) Child tax credit Credit for other 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a 2b 3a Qualified dividends b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required b Taxable amount 3b 4b d Taxable amount 4d b Taxable amount b 5b 4a IRA distributions 4a Standard Deduction for- Pensions and annuities 4c Single or Married iling separately, 5a Social security benefits 5a $12,200 Married filing 6 Capital gain or loss). Attach Schedule D if required. If not required, check here ointly or Qualifying 7a Other income from Schedule 1, line 9 vidow(er). $24.400 b Add lines 1, 2, 3, 4b, 4d, 5b, 6, and 7a. This is your total income Head of household Ra Adinstments to income from Schedule 1 line 29 6 7a 7b Ra required b Taxable amount 4b d Taxable amount 4d b Taxable amount b 5b 6 7a 4a IRA distributions 4a Standard Deduction for- Pensions and annuities 4c Single or Married filing separately, 5a Social security benefits 5a $12.200 Married filing 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here jointly or Qualifying 7a Other income from Schedule 1, line 9 widow(er), $24.400 . Head of b Add lines 1, 2, 3, 4b, 40, 56, 6, and 7a. This is your total income household, $18,350 8a Adjustments to income from Schedule 1, line 22 . If you checked any box under b Subtract line Ba from line 7b. This is your adjusted gross income Standard Deduction, see 9 Standard deduction or itemized deductions (from Schedule A) () instructions. 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 7b 8a 8b 9 10 11a 11a Add lines 9 and 10 b Taxable income. Subtract line 11a from line 8b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 11b Cat. No. 11320B 12a 12b 13a 13b 14 15 16 17 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4972 (3) b Add Schedule 2, line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 120. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC) b Additional child tax credit. Attach Schedule 8812 c American opportunity credit from Form 8863, line 8 d Schedule 3, line 14 e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check 18a 18b 18c 18d 18e 19 20 21a here Routing number c Type: Checking Savings d Account number 22 23 22 Amount of line 20 you want applied to your 2020 estimated tax 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. 24 Yes. Complete below. No Designee's Phone Personal identification name no. number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature If the IRS sent you an Identity Date Your occupation Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: 3rd Party Designee Self-employed Firm's name Phone no. 1 1 2a 2a b 3 3 4 Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F Unemployment compensation Other income. List type and amount | 4 5 5 6 6 7 7 8 8 9 9 Part II 10 10 11 11 12 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a Adjustments to Income Educator expenses Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction 12 13 13 14 14 15 15 16 16 17 17 18a 18a b Penalty on early withdrawal of savings Alimony paid Recipient's SSN Date of original divorce or separation agreement (see instructions) IRA deduction Student loan interest deduction Reserved for future use 19 19 20 20 21 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 | Enter the total interest you paid in 2019 on qualified student loans. Don't enter more than $2,500 Enter the amount from Form 1040 or 1040-SR, line 7 21 Enter the total of amounts from Schedule 1, line 10 through 19, plus any write-in adjustments you entered on the dotted line next to Schedule 1, line 22 31 Subtract line 3 from line 2 4 Enter the amount shown below for your filing status. Single, head of household, or qualifying widow(er)-$70,000 Married filing jointly$140,000 5 Is the amount on line 4 more than the amount on line 5? No. Skip lines 6 and 7, enter-O- on line 8, and go to line 9. Yes. Subtract line 5 from line 4 Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 Multiply line 1 by line 7 Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on Schedule line 20. Don't include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.)