Instructions Comprehensive Problem 2-1 Beverly and Ken Hair have been married for 3 years. Beverly works as an accountant at Cypress Corporation. Ken is a full-time student at Southwest Missouri State University (SMSU) and also works part-time during the summer at Cypress Corp. Ken's birthdate is January 12, 1993 and Beverly's birthdate is November 4, 1995. Beverly and Ken each received a W-2 form from Cypress Corporation (see separate tab). The Hairs have interest income of $1,000 on City of St. Louis bonds. Beverly and Ken also received a Form 1099-INT from Boatman's Bank and a 1099-DIV form from green Corporation (see separate tab). Ken is an excellent student at SMSU. He was given a $1,750 scholarship by the university to help pay educational expenses. The scholarship funds were used by Ken for tuition and books, Last year, Beverly was laid off from her former job and was unemployed during January 2019. She was paid $1.825 of unemployment compensation until she started work with her current employer, Cypress Corporation. Ken has a 4-year-old son, Robert R. Hair, from a prior marriage that ended in divorce in 2014. During 2019, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife. During 2019, Ken's aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the Boatman's Bank savings account. Required: Complete the Hairs' Form 1040. Schedule 1, and the Qualified Dividends and Capital Gain Tax Worksheet. The Hair's had health cover for the entire year. They do not want to make any contribution to the presidential election campaign. Make any other realistic assumptions about any missing data. If an amount box does not require an entry or if an amount is zero, enter "o". Enter amounts as positive numbers. If required, round amounts to the nearest dollar. a Employee's social security number 465-74-3321 OMB No. 1545-0008 Safe, accurate, FAST! Use IRS en file Visit the IRS website at www.irs.gov/ele b Employer identification number (EIN) 31-1238967 1 Wages, tips, other compensation 51,000.00 2 Federal income tax withheld 4,790.00 4 Social security tax withheld 3,162.00 C Employer's name, address, and ZIP code Cypress Corp. 1234 E. Chestnut Parkway Springfield, MO 65802 3 Social security wages 51,000.00 5 Medicare wages and tips 51,000.00 7 Social security tips 6 Medicare tax withheld 739.50 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Beverly Hair 3567 River Street Springfield, MO 63126 13 Statutory employee Retirement Third-party 12b plan sick pay d 14 Other 12c C 12d f Employee's address and ZIP code 15 State Employer's 16 State wages, tips state ID MO number 51,000.00 17 State income 18 Local wages, tips, 19 Local income 20 Locality name etc. tax etc. tax 680.00 a Employee's social security number 465-57-9934 b Employer identification number (EIN) 31-1238967 Employer's name, address, and ZIP code Cypress Corp. 1234 E. Chestnut Parkway Springfield, MO 65802 Safe, accurate, Visit the IRS website at OMB No. 1545-0008 IRS e n file FAST! Use www.irs.gov/elile 1 Wages, tips, other compensation 2 Federal income tax withheld 2,700.00 0.00 3 Social security wages 4 Social security tax withheld 2,700.00 167.40 5 Medicare wages and tips 6 Medicare tax withheld 2,700.00 39.15 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Ken Hair 3567 River Street Springfield, MO 63126 0 d 13 Statutory Retirement Third-party 12b employee plan C sick pay d e 14 Other 12c C 12d f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, state ID MO number 2,700.00 19 Local income 20 Locality name 17 State income tax 0.00 18 Local wages, tips etc. tax PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Payer's RTN (optional) OMB No. 1545-0112 2019 Interest Income 1 Interest income Boatman's Bank 300 City Avenue Springfield, MO 63126 $ 651.76 Form 1099-INT 2 Early withdrawal penalty PAYER'S TIN RECIPIENT'S TIN 3 Interest on U.S. Savings Bonds and Treas. obligations Copy B 33-1234566 465-74-3321 $ For Recipient 4 Federal income 5 Investment RECIPIENT'S name tax withheld expenses Beverly and Ken Hair This is important tax 6 Foreign tax paid 7 Foreign country or information and is Street address (including apt. no.) U.S. possession being furnished to the 3567 River Street IRS. If you are required to file a return, a 8 Tax-exempt 9 Specified private City or town, state or province, country, and ZIP or foreign postal negligence penalty or interest activity bond interest other sanction may be code $ imposed on you if this Springfield, MO 63126 income is taxable and 10 Market discount 11 Bond premium the IRS determines FATCA filing that it has not been requirement $ $ reported 12 Bond premium on 13 Bond premium on Treasury obligations tax-exempt bond $ $ Account number (see instructions) 14 Tax-exempt and 15 State 16 State 17 State tax tax credit bond CUSIP identification withheld no. no. $ $ Form 1099-INT (keep for your records) www.irs.gov/Form 1099INT Department of the Treasury - Internal Revenue Service Beverly and Ken's Form 1099-INT and Form 1090-DIV $ 300.00 Green Corporation 900 South Orange Ave. Springfield, MO 63126 1b Qualified dividends 2019 and Distributions Form 1099-DIV 2b Unrecap. Sec. 1250 gain $ 300.00 2a Total capital gain distr. RECIPIENT'S TIN 2c Section 1202 gain PAYER'S TIN 2d Collectibles (289) gain 33-11223344 465-57-9934 $ RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld Copy B Ken Hair For Recipient 6 Investment expenses 5 Section 199A dividends Street address (including apt. no.) 7 Foreign tax paid 3567 River Street City or town, state or province, country, and ZIP or foreign postal $ code 8 Foreign country or U.S. possession This is important tax information and is being furnished to the IRS. IF you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported 9 Cash liquidation distributions 10 Noncash liquidation distributions Springfield, MO 63126 $ FATCA filing 11 Exempt-interest requirement dividends 12 Specified private activity bond interest dividends $ Account number (see instructions) 13 Statel 14 State 15 State tax withheld identifications no CONDU DOOD