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James Dangell (birthdate August 2, 1976) is a single taxpayer. Jim's earnings and withholdings as the manager of a local casino for 2020 are reported

James Dangell (birthdate August 2, 1976) is a single taxpayer. Jim's earnings and withholdings as the manager of a local casino for 2020 are reported on his Form W-2 (see separate tab).

Jim received Form 1098 from the Reno Bank & Trust (see separate tab).

Jim's other income includes interest on a savings account at Nevada National Bank of $13,700.

Jim pays his ex-spouse, Sarah McLoughlin, $3,900 per month in accordance with their February 12, 2019 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,800 per month. His ex-wife's Social Security number is 554-44-5555.

In 2020, Jim purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,650, which exceeds the estimated amount per the IRS tables.

Jim participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $75 in 2020.

During the year, Jim paid the following amounts (all of which can be substantiated):

Credit card interest $1,760
Auto loan interest 4,300
Auto insurance 900
Property taxes on personal residence 2,988
Contributions to HSA 2,000
Income tax preparation fee 900
Charitable contributions (all cash):
Boy Scouts 1,350
St. Matthews Church 3,100
Nevada Democratic Party 250
Fund-raising dinner for the Reno Auto Museum 100
(value of dinner is $25)

In 2020, Jim inherited over $500,000 from his Uncle Travis that died in 2020. Although Jim invested a large portion, he also contributed $125,000 cash to the newly named Travis School of Criminal Justice at the University of Reno.

Required: Complete Jim's Form 1040 and Schedules 1, A and B as well Form 8889.

  • Make realistic assumptions about any missing data.
  • Jim had health coverage for the entire year and he does not want to contribute to the presidential election campaign,
  • Enter all amounts as positive numbers.
  • If an amount box does not require an entry or the answer is zero, enter "0".
  • If required round any dollar amount to the nearest dollar.

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