Joe and Jane Guenther have asked you to prepare their 2020 Federal income tax return (Form 1040). They have provided the following information to help you prepare their return. Assume that all information pertains to tax year 2020 unless otherwise indicated.1)Joe and Jane have been married for 15 years and have filed joint tax returns during that time period. Joes Social Security Number is 111-11-1111. Janes is 222-22-2222. 2)Joes salary was $53,000, while Janes salary was $8 5,000, during tax year 2020. 3)In addition to her salary, Jane operated a sole proprietorship that generated $20,000 in revenue. The business started in 2016. Theonly expense for the business was $5,000 in Facebook ads (advertising).The business of the sole proprietorship is health care consulting. a.The Business name is Janes Health Care Consulting. b.The consulting revenue is considered gross receipts or sales. c.The EIN is 123456789. d.It uses the cash method of accounting. e.Jane was a material participant in the business.f.Jane did not make any tax payments to contractors (i.e. she does not need to file a form 1099). g.Since this is a service business, there is no cost of goods sold.h.You do not need to fill out a business address.i.She is not claiming any expenses for her home in regard to the business.4)Joe and Jane have an 11-year-old son, Brandon, and an 8-year-old daughter, Jennifer, who lived with them throughout the entire year. Joe and Jane also have an adopted son, Michael. They adopted Michael 3 years ago. Michael is 5 and lived with Joe and Jane throughout the entire year. You do not need to fill out any eligible dependents Social Security #s. You can ignore the credit for other dependents possibility for these children. However, you do need to determine if they qualify for the child tax credit.5)Joe and Jane received $550 of interest income from bonds issued by the City of Bloomington and $750 of interest income from bonds issued by Apple, Corp. 6)Joe contributed $5,400 of his salary to a qualified retirement account (i.e., his IRA). Assume Joe is covered by a qualified retirement plan at work. Note: you do not need to fill out the IRA limitation worksheet. 7)Joe sold his minivan (which he used to drive the family around town) for $10,000. The sale generated a loss of $19,000 (= $10,000 - $29,000 original cost). Joe also had two sales of stock during the year. He originally purchased stock in Kodak Company in January 2015 for $50,000. He sold this Kodak stock in December 2020 for $9,000. He originally purchased shares in Tesla in March 2018 for $4,000, and sold the Tesla stock in February 2020 for $40,000. 8)Jane contributed $600 cash to the United Way of Monroe County, a qualified charity. She also contributed to the same charity stock that she purchased 5 years ago for $1,000 that is now worth $3,000.

2 9)According to their W-2 forms, Joe and Janes employers withheld a total of $4,300 in federal income taxes from their paychecks during the tax year.10)Joe and Jane incurred the following non-business related expenses during tax year 2020:a.$9,200 state income taxesb.$3,000 city income taxesc.$650 state excise taxes on gasoline and alcoholic beverages d.$7,500 interest expense on the mortgage for their primary residence (Form 1098). The mortgage was for $250,000. e.$2,700 real property taxes on their primary residencef.$540 personal property taxes on two cars (based on the value of the vehicles) g.Joe broke his leg during the year, and spent $22,200 on medical expenses related to the injury. Jane also broke her foot (bad luck for the family this year!), and paid $1,200 for medical expenses related to the injury.

Please finish the SCHEDULE D (Form 1040) by using this informations.