Instructions Comprehensive Problem 4-1 Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at- home parent and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2019, the Blacks provide over half of Alton's support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walt's earnings from teaching are included on the W-2 (see separate tab). The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home. The Blacks received a 1099-DIV from their mutual fund investments (see separate tab). The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows: Rental income $12,100 8,600 Mortgage interest reported on Form 1098 Homeowners' association dues 5,200 Utilities 1,200 3,800 Maintenance Depreciation (assume fully depreciated) The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. Required: Complete Form 1040 and the schedules and forms provided for the Blacks. Assume the taxpayers had health coverage for the entire year. Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "O". Do not round any percentages. If required, round your answers to the nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. . Walter's Forms W-2 and 1099-DIV Walter's earnings from teaching are: OMB No. 1545-0008 Safe, accurate, FASTI Use IRS e - file Visit the IRS website at www.lrs.gov/efile a Employee's social security number 700-01-0002 b Employer identification number (EIN) 31-1239867 2 Federal income tax withheld 4,310.00 c Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 1 Wages, tips, other compensation 51,200.00 3 Social security wages 51,200.00 5 Medicare wages and tips 51,200.00 7 Social security tips 4 Social security tax withheld 3,174.40 6 Medicare tax withheld 742.40 8 Allocated tips d Control numhar 10 Danandant cara hanafite d Control number 9 10 Dependent care benefits Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Last name Walter Black 883 Scrub Brush Street, Apt 52B Las Vegas, NV 89125 0 DD $7,900.00 d e 12b 13 Statutory employee Retirement plan Third-party sick pay 0 d 14 Other 12c 0 d d e 12d 0 0 0 0 f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, state ID number etc. 19 Local income 20 Locality name 17 State income tax 18 Local wages, tips, etc. tax NY RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld Copy B Skylar B. Black For Recipient 6 Investment expenses 5 Section 199A dividends Street address (including apt. no.) $ 7 Foreign tax paid 883 Scrub Brush Street #52B City or town, state or province, country, and ZIP or foreign postal code $ 9 Cash liquidation distributions This is important tax information and is being 8 Foreign country or U.S. furnished to the IRS. If possession you are required to file a return, a negligence penalty or other 10 Noncash liquidation sanction may be distributions imposed on you if this income is taxable and the IRS determines that it has not been reported. 12 Specified private activity bond interest dividends Las Vegas, NV 89125 FATCA filing 11 Exempt-interest requirement dividends Account number (see instructions) 13 State 14 State 15 State tax withheld identification $ no $ Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service Form 1040 Complete Form 1040 for Walter and Skylar Black. 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 Your first name and middle initial Last name Your social security number Walter Black 700-01-0002 Last name Spouse's social security If joint return, spouse's first name and middle initial Black number Skylar 222-43-7690 Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election 883 Scrub Brush Street 52B Campaign Check here if you, or your spouse City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below if filing jointly, want $3 to go to this fund. Checking a box below (see instructions). will not change your tax or Las Vegas, NV 89125 refund. None Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here o Standard Someone can claim: None Deduction You: None Age/Blindness 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 Rebecca Backin 411-66-2121 Mother No Yes Alton Black 343-22-8899 Father No Yes O O 1 Wages, salaries, tips, etc. Attach Form(s) W-2 51,200 2b 1,425 3b b Taxable interest. Attach Sch. B 2a Tax-exempt interest .. 2a if required b Ordinary dividends. Attach 3a Qualified dividends ... 1,002 Sch. B if required 4a IRA distributions .. 4a b Taxable amount ... c Pensions and annuities 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 ... O 4b 40 4d 5b 6 Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 . If you checked any box under Standard Deduction con ip 7a Other income from Schedule 1, line 9 7a 7b 8 b Add lines 1, 2b, 3b, 45, 40, 56, 6, and 7a. This is your total income .. 8a Adjustments to income from Schedule 1, line 22 .... b Subtract line 8a from line 76. This is your adjusted gross income 9 Standard deduction or itemized deductions (from Schedule A)..... 8b 9 24,400 O 22 23 19 Add lines 17 and 18e. These are your total payments... 19 4,310 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid .... 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposit? Routing number c Type: Checking Savings See instructions. d Account number Amount of line 20 you want applied to your 2020 estimated tax.... 22 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 paid preparer) name no. number (PIN) Sign 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 Here taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Joint return? Protection PIN, enter it here See Teacher (see inst.) instructions. Keep a copy for Spouse's signature. If a joint Date Spouse's occupation If the IRS sent your spouse an Instructions Comprehensive Problem 4-1 Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at- home parent and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2019, the Blacks provide over half of Alton's support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walt's earnings from teaching are included on the W-2 (see separate tab). The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home. The Blacks received a 1099-DIV from their mutual fund investments (see separate tab). The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows: Rental income $12,100 8,600 Mortgage interest reported on Form 1098 Homeowners' association dues 5,200 Utilities 1,200 3,800 Maintenance Depreciation (assume fully depreciated) The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. Required: Complete Form 1040 and the schedules and forms provided for the Blacks. Assume the taxpayers had health coverage for the entire year. Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "O". Do not round any percentages. If required, round your answers to the nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. . Walter's Forms W-2 and 1099-DIV Walter's earnings from teaching are: OMB No. 1545-0008 Safe, accurate, FASTI Use IRS e - file Visit the IRS website at www.lrs.gov/efile a Employee's social security number 700-01-0002 b Employer identification number (EIN) 31-1239867 2 Federal income tax withheld 4,310.00 c Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 1 Wages, tips, other compensation 51,200.00 3 Social security wages 51,200.00 5 Medicare wages and tips 51,200.00 7 Social security tips 4 Social security tax withheld 3,174.40 6 Medicare tax withheld 742.40 8 Allocated tips d Control numhar 10 Danandant cara hanafite d Control number 9 10 Dependent care benefits Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Last name Walter Black 883 Scrub Brush Street, Apt 52B Las Vegas, NV 89125 0 DD $7,900.00 d e 12b 13 Statutory employee Retirement plan Third-party sick pay 0 d 14 Other 12c 0 d d e 12d 0 0 0 0 f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, state ID number etc. 19 Local income 20 Locality name 17 State income tax 18 Local wages, tips, etc. tax NY RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld Copy B Skylar B. Black For Recipient 6 Investment expenses 5 Section 199A dividends Street address (including apt. no.) $ 7 Foreign tax paid 883 Scrub Brush Street #52B City or town, state or province, country, and ZIP or foreign postal code $ 9 Cash liquidation distributions This is important tax information and is being 8 Foreign country or U.S. furnished to the IRS. If possession you are required to file a return, a negligence penalty or other 10 Noncash liquidation sanction may be distributions imposed on you if this income is taxable and the IRS determines that it has not been reported. 12 Specified private activity bond interest dividends Las Vegas, NV 89125 FATCA filing 11 Exempt-interest requirement dividends Account number (see instructions) 13 State 14 State 15 State tax withheld identification $ no $ Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service Form 1040 Complete Form 1040 for Walter and Skylar Black. 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 Your first name and middle initial Last name Your social security number Walter Black 700-01-0002 Last name Spouse's social security If joint return, spouse's first name and middle initial Black number Skylar 222-43-7690 Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election 883 Scrub Brush Street 52B Campaign Check here if you, or your spouse City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below if filing jointly, want $3 to go to this fund. Checking a box below (see instructions). will not change your tax or Las Vegas, NV 89125 refund. None Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here o Standard Someone can claim: None Deduction You: None Age/Blindness 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 Rebecca Backin 411-66-2121 Mother No Yes Alton Black 343-22-8899 Father No Yes O O 1 Wages, salaries, tips, etc. Attach Form(s) W-2 51,200 2b 1,425 3b b Taxable interest. Attach Sch. B 2a Tax-exempt interest .. 2a if required b Ordinary dividends. Attach 3a Qualified dividends ... 1,002 Sch. B if required 4a IRA distributions .. 4a b Taxable amount ... c Pensions and annuities 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 ... O 4b 40 4d 5b 6 Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 . If you checked any box under Standard Deduction con ip 7a Other income from Schedule 1, line 9 7a 7b 8 b Add lines 1, 2b, 3b, 45, 40, 56, 6, and 7a. This is your total income .. 8a Adjustments to income from Schedule 1, line 22 .... b Subtract line 8a from line 76. This is your adjusted gross income 9 Standard deduction or itemized deductions (from Schedule A)..... 8b 9 24,400 O 22 23 19 Add lines 17 and 18e. These are your total payments... 19 4,310 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid .... 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposit? Routing number c Type: Checking Savings See instructions. d Account number Amount of line 20 you want applied to your 2020 estimated tax.... 22 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 paid preparer) name no. number (PIN) Sign 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 Here taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Joint return? Protection PIN, enter it here See Teacher (see inst.) instructions. Keep a copy for Spouse's signature. If a joint Date Spouse's occupation If the IRS sent your spouse an