John and Jane Doe are married retired taxpayers who care for their three-year-old grandson. The following information was provided to you as documentation necessary to prepare their 2020 tax return. You will gather the appropriate information and complete the forms provided in Blackboard (1040, Schedule A, Schedule B and Schedule D) in preparation of their tax file. Please note that the forms provided may not match the tax year of the course, as IRS forms are not available until just before the start of the filing season, and this course generally is approximately a year ahead of the actual form releases. Therefore, do not worry about the year on top of the forms, but utilize information for the current year of the textbook in use for this course when determining deduction amounts, exemption amounts, and tax rates.

Taxpayer:

Name: John Doe

DOB: 6/29/1950

SSN: 555-12-3456

Spouse:

Name: Jane Doe

DOB: 7/4/1948

SSN: 555-65-4321

Dependent:

Name: Jimmy Doe

DOB: 1/12/2014

SSN: 555-68-9101

Mailing Address:

12345 Any Street

Los Angeles, Ca 90124

In addition to the attached documents (see TRP 2 Additional Documents.docx), the taxpayer provided the following information:

Deductions

Prescription Medication: $638

Doctors Visits: $2,904

Insurance Premiums out of pocket (not including Medicare premiums deducted from social security): $5,125

Medical Miles Driven: 410

Deductible DMV registration fees: $170

Income:

Received a gift from Janes mother, $12,000

Sold Stock with a basis of $10,000 for $13,500. Held the stock for more than one year

Sold stock with a basis of $5,000 for $5,500. Held the stock for less than one year.

Finally, all three members of the family had qualifying health insurance for the entire year.