Instructions: Please complete the 2020 federal income tax return for James and Ellie Smith. You do not need to attach Form W-2 but you do need to include all relevant forms and schedules. If you think you need information that is not included, make reasonable assumptions to fill in the missing information or ask me. James and Ellie Smith live in Orlando, Florida. James works in the corporate finance department at Disney. Ellie is a former supply chain manager who currently consults with former contacts but is no longer employed full-time. The Smiths have four children Susan (age 20), Kyle (age 15), Jason (age 12), and Katelynn (age 7). Susan is a full-time student and a university sophomore. All four children qualify as James and Ellies federal income tax dependents. The Smiths plan to file a joint tax return. The Smiths provide the following information: Jamess social security number is 598-94-2583 Ellies social security number is 301-52-2942 Susans social security number is 887-44-8710 Kyles social security number is 810-42-9092 Jasons social security number is 855-11-3021 Katelynns social security number is 427-96-3287 The Smiths mailing address is 531 South Aspen Way, Orlando, Florida 87509 James Smith reported the following information relating to his employment during the year: Employer Gross Wages Federal Income Tax Withholding Disney $127,150 $12,450 The above amounts do not reflect any income items described below. Jamess employer withheld all payroll taxes it was required to withhold. The entire Smith family was covered by minimum essential health insurance during each month in 2020. The insurance was provided by Jamess employer, Disney. Ellie Smith received the following payments during the year (she uses the cash method of accounting). Consulting revenue reported to her on a Form 1099-MISC, Box 7 Beckham LTD $20,100 BKR Specitalties $18,700 Board of director compensation reported to her on a Form 1099-MISC, Box 7 EGL Logistics, Inc. $8,500

During the year, Ellie paid the following business expenses: Consultant-related: Airfare $1,600 Hotel $1,150 Meals $245 Parking $120 Ellie drove 800 business miles for her consulting-related activities (she has documentation to verify) Board of Director-related: Meals $110 Hotel $225 Ellie drove 230 business miles for her board of director activities (she has documentation to verify) Neither of Ellies business activities required the filing of Form(s) 1099 to report payments she made during the tax year. In addition, Ellie drove a 2015 Honda Civic purchased on March 23, 2015 for all her business mileage. She drove the vehicle a total of 11,259 miles during the year for all purposes. Ellie has written documentation to support the mileage amounts. She also has access to another vehicle for personal purposes. The Smiths also received the following during the year: Interest income from First Bank of Florida $220 Interest income from Patterson, Florida School District $400 Interest income from U.S. Treasury Bond $305 Interest income from General Mills corporate bond $115 Qualified dividend income from Phillips 66 $520 Qualified dividend income from Cooper Tire $200 Qualified dividend income from Anthem $425 Qualified dividend income from Netflix $110 Qualified dividend income from Procter & Gamble $245 Qualified dividend income from Kellogg $85 Qualified dividend income from 3M $120 The Smiths did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year. The Smiths had the following activity in their brokerage account during the year (all transactions were reported on a Form 1099-B. Basis information on each stock sale was reported to the IRS): Sold 2,000 shares of Phillips 66 7/1/20 $22,500 Sold 750 shares of ExxonMobil 4/15/20 $28,750 Sold 350 shares of Cooper Tire 10/14/20 $14,700

Sold 1,000 shares of Anthem 9/3/20 $35,000 Sold 50 shares of Netflix 1/7/20 $2,400 Purchased 100 shares of Procter & Gamble 7/10/20 $7,700 Purchased 350 shares of Cooper Tire 11/1/20 $14,000 Purchased 350 shares of PepsiCo 5/14/20 $32,000 Purchased 300 shares of Kellogg 10/14/20 $21,000 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 2,000 shares of Phillips 66 on 5/1/19 for $29,000 Purchased 2,000 shares of ExxonMobil on 3/8/14 for $70,000 Purchased 300 shares of Cooper Tire on 1/12/13 for $15,000 Purchased 50 shares of Cooper Tire on 6/28/19 for $2,000 Received 1,000 shares of Anthem from Ellies father as a gift on 10/10/15. Her fathers basis in the stock at the time of the gift was $23,000. Fair market value of the stock at the date of the gift was $41,000 Purchased 100 shares of Netflix on 9/5/17 for $6,000 The Smiths have a $12,100 long-term capital loss carryover from the prior tax year. The Smiths paid the following expenses during the year and kept all necessary documentation: Dentist (unreimbursed by insurance) $3,250 Doctors & Hospitals (unreimbursed by insurance) $5,425 Ambulance Ride (unreimbursed by insurance) $1,500 Prescriptions (unreimbursed by insurance) $675 Real property taxes on residence $9,120 Mortgage interest on principal residence (avg. loan balance $480,000) $16,300 Contribution to American Red Cross $2,000 Contribution to World Food Program $4,000 Contribution to local candidate for mayor $500 Contribution to Temple Mount Church $9,000 The Smiths also donated clothing, electronics, furniture and other household goods to the Salvation Army of Orlando, Florida on April 15, 2020 and obtained all necessary documentation. Estimated thrift value of the goods donated was $475. Miscellaneous Information Ellie made estimated tax payments during the year of $4,800 in 4 equal installments of $1200. Neither Ellie nor James participated in a retirement plan at work this year. Each made a $5,000 contribution to a traditional IRA during the year. The Smiths do not pay income taxes in Florida but paid $1,430 of sales taxes. During the year, the Smiths paid a portion of Susans tuition to attend The University of Central Florida. They also purchased Susans school books. Susan attended the spring and fall semesters as a full-time student. In total, the Smiths paid $8,000 for tuition and fees and $1,500 for books. Susan used $3,000 from a scholarship she received to pay the remaining $3,000 of tuition for the year. Susan was not required to perform any services as a condition of accepting the scholarship. Susan was not employed during the year. UNMs address and employer identification number (EIN) is as follows: University of Central Florida 106 Ivory Lane Orlando, FL 32828 EIN- 43-5744781

The Smiths do not want to contribute to the Presidential Election Campaign Fund. The Smiths would also like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.4 from a scholarship she received to pay the remaining $3,000 of tuition for the year. Susan was not required to perform any services as a condition of accepting the scholarship. Susan was not employed during the year. UNMs address and employer identification number (EIN) is as follows: University of Central Florida 106 Ivory Lane Orlando, FL 32828 EIN- 43-5744781 The Smiths do not want to contribute to the Presidential Election Campaign Fund. The Smiths would also like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.