Question
In this assignment, please help me identify which section and form the prompt belongs to (Schedule A, Schedule C, Schedule 1, 1040, and Schedule SE)
In this assignment, please help me identify which section and form the prompt belongs to (Schedule A, Schedule C, Schedule 1, 1040, and Schedule SE)
Comprehensive Tax Return
Daniel and Kate Gilbert got married eight years ago and have a seven-year-old daughter, Samantha. In 2019, Daniel worked as a computer technician at a local university earning a salary of $151,000, and Kate worked part-time as a receptionist for a law firm earning a salary of $28,000. Daniel also does some Web design work on the side and reported revenues of $5,000 and associated expenses of $1,600. The Gilberts received $1,000 in qualified dividends and a $400 refund of their state income taxes. The Gilberts always itemize their deductions and their itemized deductions were well over the standard deduction amount last year. The Gilberts had qualifying insurance for purposes of the Affordable Care Act (ACA). Use Exhibit 8-9, Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference.
The Gilberts reported making the following payments during the year:
- Salary $151,000 T and $28,000 S.
- Side business $5,000 in Revenues and $1,600 in expenses.
- Qualified Dividends $1,000
- State refund from last year $400 and they itemized (well over the standard deduction).
- State income taxes of $5,500. Federal tax withholding of $21,000.
- Alimony payments to Ks former husband of $12,000 (divorced in 2014).
- Child support payments for Ks child with his former husband of $6,300.
- $13,400 of real property taxes.
- S was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer.
- $2,500 to ABC Care day care center for childs care while parents both worked.
- $15,000 interest on their home mortgage ($800,000 acquisition debt in 2018).
- $2,000 interest on a $20,000 home-equity loan. They used the loan to pay for a family vacation and new car.
- $12,000 cash charitable contributions to qualified charities.
- Donation of used furniture to Goodwill. The furniture had a fair market value of $600 and cost $2,000.
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