Instructions Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedule B Line 1 2 3 4 5 6 15 Instructions Note: This problem is for the 2019 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1973, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2019. Description Amount Wages, tips, other compensation $65,000.00 Federal income tax withheld 9,500.00 Social Security wages 65,000.00 Social Security tax withheld 4,030.00 Medicare wages and tips 65,000.00 Medicare tax withheld 942.50 State Arizona State wages, tips, etc. 65,000.00 State income tax withheld 1,954.00 During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099- DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2019. On her 2018 Federal income tax return, she used the standard deduction Fees earned from her part-time tax practice in 2019 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, she sold the stock for $14 a share. Beth bought a used sports utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500. On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. 16 17 During the vaar Roth naceron of 16 from the cale na colare neram che dovolenor She incurred the following Instructions Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedules 650 Instructions the standard deduction Fees earned from her part-time tax practice in 2019 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, she sold the stock for $14 a share. Beth bought a used sports utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500. On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share. Both stack transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business Cost of personal computer $7,000 Cost of printer 2,000 Furniture 3,000 Supplies Fee paid to computer consultant 3,500 Beth elected to expense the maximum portion of the cost of the computer printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2019, and used 100% in her business. Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending. The $1,420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for medical bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated Federal income taxes of $1,000. Required: Compute the net tax payable or refund due for Beth R. Jordan for 2019. You will need Form 1040, (and its Schedules 1,2,3, B, C, D, and SE) and Forms 4562, 8995 and 8949 and the Qualified Dividends and Capital Gain Tax Worksheet. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "o". Enter all amounts as positive numbers, unless instructed otherwise. . It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2019 Tax Rate Schedule provided. Do not use the Tax Tables. Instructions Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedule B Schedule 1 mplete Beth's Schedule 1 below for 2019. Yes No CHEDULE 1 OMB No. 1545-0074 orm 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 partment of the Treasury Attach to Form 1040 or 1040-SR. Attachment ternal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 01 me(s) shown on Form 1040 or 1040-SR Your social security number th R. Jordan 123-45-6785 any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual rrency?.. Part I Additional Income Taxable refunds, credits, or offsets of state and local income taxes a Alimony received 6 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, Scorporations, trusts, etc. Attach Schedule E Farm Income or (loss). Attach Schedule F.. Unemployment compensation. Other income. List type and amount 1 2a 3 4 5 7 8 9 10 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7 -art II Adjustments to Income Educator expenses. 1 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 11 12 Moving expenses for members of the Armed Forces. Attach Form 3903 13 Instructions Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedule B Line 1 2 3 4 5 6 15 Instructions Note: This problem is for the 2019 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1973, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2019. Description Amount Wages, tips, other compensation $65,000.00 Federal income tax withheld 9,500.00 Social Security wages 65,000.00 Social Security tax withheld 4,030.00 Medicare wages and tips 65,000.00 Medicare tax withheld 942.50 State Arizona State wages, tips, etc. 65,000.00 State income tax withheld 1,954.00 During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099- DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2019. On her 2018 Federal income tax return, she used the standard deduction Fees earned from her part-time tax practice in 2019 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, she sold the stock for $14 a share. Beth bought a used sports utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500. On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. 16 17 During the vaar Roth naceron of 16 from the cale na colare neram che dovolenor She incurred the following Instructions Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedules 650 Instructions the standard deduction Fees earned from her part-time tax practice in 2019 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, she sold the stock for $14 a share. Beth bought a used sports utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500. On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share. Both stack transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business Cost of personal computer $7,000 Cost of printer 2,000 Furniture 3,000 Supplies Fee paid to computer consultant 3,500 Beth elected to expense the maximum portion of the cost of the computer printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2019, and used 100% in her business. Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending. The $1,420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for medical bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated Federal income taxes of $1,000. Required: Compute the net tax payable or refund due for Beth R. Jordan for 2019. You will need Form 1040, (and its Schedules 1,2,3, B, C, D, and SE) and Forms 4562, 8995 and 8949 and the Qualified Dividends and Capital Gain Tax Worksheet. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "o". Enter all amounts as positive numbers, unless instructed otherwise. . It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2019 Tax Rate Schedule provided. Do not use the Tax Tables. Instructions Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedule B Schedule 1 mplete Beth's Schedule 1 below for 2019. Yes No CHEDULE 1 OMB No. 1545-0074 orm 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 partment of the Treasury Attach to Form 1040 or 1040-SR. Attachment ternal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 01 me(s) shown on Form 1040 or 1040-SR Your social security number th R. Jordan 123-45-6785 any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual rrency?.. Part I Additional Income Taxable refunds, credits, or offsets of state and local income taxes a Alimony received 6 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, Scorporations, trusts, etc. Attach Schedule E Farm Income or (loss). Attach Schedule F.. Unemployment compensation. Other income. List type and amount 1 2a 3 4 5 7 8 9 10 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7 -art II Adjustments to Income Educator expenses. 1 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 11 12 Moving expenses for members of the Armed Forces. Attach Form 3903 13