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 interest4,300
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.
Jim's W-2 Form X b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 31-1459656 192,000.00 24,500.00 c Employer's name, address, and ZIP code 3 Social security wages 4 Social security tax withheld Lucky Ace Casino 137,700.00 8,537.40 700 N. Sierra Street 5 Medicare wages and tips 6 Medicare tax withheld Reno, NV 89503 200,000.00 2,900.00 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 James DangellJim's W-2 Form X e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 James Dangell C 911 Parr Blvd. 0 Reno, NV 89512 D 8,000.00 13 Statutory Retirement Third-party 12b employee plan sick pay C W 1,200.00 d e 14 Other 12cJim's Form 1098 country, ZIP or foreign postal code, and telephone no. shown may not be fully deductible by you. Limits Reno Savings & Loan based on the loan amount OMB No. 1545-1380 49 Commerce Street and the cost and value of Reno, NV 89501 the secured property may 2020 apply. Also, you may only deduct interest to the extent it was incurred by Form 1098 you, actually paid by you, and not reimbursed by another person. 1 Mortgage interest received from payer(s)/borrower(s) 18,888.78Jim's Form 1098 RECIPIENT'S/LENDER'S TIN PAYER'S/BORROWER'S TIN 2 Outstanding mortgage 3 Mortgage principal origination date 33-1234569 555-94-9358 $ 592,355.15 Mar 3, 2004 4 Refund of overpaid 5 Mortgage interest insurance premiums $ PAYER'S/BORROWER'S name 6 Points paid on purchase of principal residenceX _ Street address {Including apt. no.) 7 El If address of property securlng mortgage Is the 911 Fan- Boulevard same as PAYER'SIBORROWER'S address, check the box, or enter the address or description in box 3. City or town, state or province, country, and ZIP or foreign postal code 8 Address or description of property securing Reno, NV 89511 mortgage {see instructions) 9 Number of properties securing the mortgage Form 1040 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . 1 192,000 Attach 2a Tax-exempt interest . . 2a b Taxable interest . . 2b 13,700 Sch. B if required. 3a Qualified dividends . . . 3a b Ordinary dividends . . . . 3b 4a IRA distributions . . . 4a b Taxable amount . . . . . 4b 5a Pensions and annuities 5a d Taxable amount . . .. 5b Standard 6a Social security benefits 6a b Taxable amount . . . 6b Deduction for- 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . 7 Single or Married filing 8 Other income from Schedule 1, line 9 . . . . 8 separately, 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . 9 205,700 $12,400 . Married filing 10 Adjustments to income:Form 1040 separately, 9 205,700 $12,400 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 . . . 10a widow(er), b Charitable contributions if you take the standard deduction. $24,800 See instructions . . . . 10b Head of household, c Add lines 10a and 10b. These are your total adjustments to income . . 10c $18,650 If you checked 11 Subtract line 10c from line 9. This is your adjusted gross income . . . 11 any box under 12 Standard deduction or itemized deductions (from Schedule A) . . . . 12 X Standard Deduction, see 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A . 13 instructions. 14 Add lines 12 and 13 . . . 14 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- 15
