Question
John and Lucy Miegel (dates of birth: December 18, 1971 and September 14, 1971, respectively) are married with three children: Jason, MaryJane and Sally (dates
John and Lucy Miegel (dates of birth: December 18, 1971 and September 14, 1971, respectively) are married with three children: Jason, MaryJane and Sally (dates of birth: July 22, 2000, June 6, 2002 and February 14, 2007, respectively). John works as a Salesman for LMN Corporation and Lucy is an Administrative Assistant for ZYX Corporation. See the client's tax return documents for more information.
Lucy began a Typing Service during 2020. See the Trial Balance for income and expenses. Both the computers and software were purchased on 07/15/2020. Lucy would like to take the maximum depreciation available on these assets. Assume the Schedule C net profit does not qualify as a qualified business income under Section 199A.
The Miegels received qualified dividends from LMN Corporation and interest from First National Bank. See the client's tax return documents for more information.
The Miegels reported the following payments during the year:
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$2,000 of medical expenses (after insurance)
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$340 of prior year state income tax paid
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$750 charitable contribution to a qualified charity
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$14,600 of mortgage interest
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$6,900 of real estate taxes
Required:
1. Prepare the Miegels 2020 federal tax return. Use Form 1040, Schedule 1, Schedule 2, Schedule
A (even if using the standard deduction), Schedule B, Schedule C, Schedule SE, and Form 4562 (with Schedule C).
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