Question
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):
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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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