Instructions Form 1040 Schedule 1 Uniform Premiums for Group Term Life Insurance 2020 Tax Rate Schedules Instructions Note: This problem is for the 2020 tax year. Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2018. Alfred and Beulah will file a joint return for 2020. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she has chosen to use "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorced from Sarah Old in March 2017. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred paid Sarah $15,000 in 2020. In addition, in January 2020, Alfred paid Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2020 is $150,000. He is an executive working for Cherry, Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She received a salary of $42,000 in 2020. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah received taxable interest income of $500. Alfred and Beulah received a $1,900 refund on their 2019 state income taxes; they claimed the standard deduction on their 2019 Federal income tax return. Alfred and Beulah paid $4,500 interest and $1,450 property taxes on their personal residence in 2020. They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign. Alfred and Beulah received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Required: Compute the Olds' net tax payable (or refund due) for 2020. Use Form 1040 and Schedule 1 to complete this tax return. It may be necessary to complete the tax schedule and worksheet before completing Form 1040. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". Make realistic assumptions about any missing data. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2020 Tax Rate Schedule provided. Do not use the Tax Tables. Form 1040 Complete Form 1040 for the Olds. Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only Filing Status Married filing jointly Your first name and middle initial Last name Your social security number Schedule 1 Complete Olds' Schedule 1 for 2020. SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Additional Income and Adjustments to Income Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information. Name(s) shown on Form 1040, 1040-SR, or 1040-NR Alfred E. and Beulah A. Old OMB No. 1545-0074 2020 Attachment Sequence No. 01 Your social security number 111-11-1100 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received. b Date of original divorce or separation agreement (see instructions) 1 2a 3 Business income or (loss). Attach Schedule C. 3 4 Other gains or losses). Attach Form 4797 .. 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 5 6 Farm income or (loss). Attach Schedule F 6 7 7 Unemployment compensation.. Other income. List type and amount B Group Term Life Insurance Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8. Part II Adjustments to Income 10 Educator expenses. 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889. 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903. 14 Deductible part of self-employment tax. Attach Schedule SE. 15 Self-employed SEP, SIMPLE, and qualified plans. 16 Self-employed health insurance deduction. 17 Penalty on early withdrawal of savings. 18a Alimony paid. b Recipient's SSN 13 14 15 16 17 18a 123-45-6788 * Date of original divorce or separation agreement (see instructions) 03/2017 19 IRA deduction.. 20 Student loan interest deduction.. 21 Tuition and fees deduction. Attach Form 8917 19 20 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10.. 22 BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040) 2020