John and Mary Smith live at xxx Street in Boston, MA-xxxx. They are filing as a married couple. They live with: Johns mother, Rosemary, their children, Robert, Alice, and Marys cousin David Jones. Other than John and Mary, everyone else is single with no dependents of their own. Person Social Security Number Date of Birth John Smith 123-45-6789 02/02/1970 Mary Smith 987-65-4321 03/01/1971 Rosemary Smith 112-11-2233 02/05/1950 Robert Smith 542-91-1122 01/01/2005 Alice Smith 254-19-2211 02/01/2002 David Jones 456-78-1234 01/05/2000 Facts Rosemary collects social security (below the level to be taxed on.) David is unemployed and has no earned or unearned income for 2020. John and Mary received the first Economic Impact Payment of $2400 plus $500 for each qualifying child in 2020. They also received the second Economic Impact Payment of $1200 plus $600 for each qualifying child in January 2021. John and Mary are the only members of the household who are employed. Their AGI for 2020 was $110,000. They provide more than 50% of the support for all members of the household. They do not contribute to the Presidential Election Campaign nor do they have any dealings in virtual currency; otherwise known as Bitcoin. Lastly, there are no additional items of income, adjustments to income, or credits other than ODC or CTC. They take the standard deduction. Required: Using the above information, prepare a Form 1040 up to Line 24 (Total Tax).
* Which lines in the 1040 form should I fill the first and second Economic Impact Payment?
* Can I claim the cousin as the dependent in the form?
+ El D Page view A Read aloud Draw Highlight $1040 2020 XX XXX Department of the Treasury - Internal Revenue Service (99) U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widowler) (OW) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box person is a child but not your dependent Your first name and middle initial Last name Your social security number John Smith 1 2 3 4 5 6 7 8 9 If joint return, spouse's first name and middle initial Last name Spouse's social security number Mary Smith 9 8 7 6 5 4 3 2 1 Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign XXX Check here if you, or your City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a XXX box below will not change Foreign country name Foreign province/state/county Foreign postal code your tax or refund. You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate retum or you were a dual-status alien Age/Blindness You: Were bom before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 is blind Dependents (see instructions): (2) Social security (3) Relationship (4) If qualifies for (see Instructions): number Last name (1) First name to you Child tax credit If more Credit for other dependents than four Robert Smith 5 4 2 9 1 1 1 2 2 Son dependents, Alice Smith 2 5 4 1 9 2 2 1 1 Daughter see instructions and check Rosemary Smith 1 1 2 1 1 2 2 3 3 Mother here David Jones 4 5 6 7 8 1 2 3 4 Cousin 1 1 110,000 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach 2a Tax-exempt interest. 2a b Taxable interest 2b Sch. Bif 3a Qualified dividends 3a b Ordinary dividends 3b required. 4a IRA distributions. 43 b Taxable amount 4b 5a Pensions and annuities 5a b Taxable amount 5b 6a 6a Social socurity bonofits Standard b Taxable amount 6b Deduction for 7 7 Capital gain or loss). Attach Schedule D if required. If not required, check here Single or 8 Married filing 8 Other income from Schedule 1, line 9. separately 110. a Add lines 10h2h ih 5h 6h 7 and 8 This is one total income g NO + (0 Page view A Read aloud V Draw Highlight 9 9 110,000 10a 10b 0 A separately. $12,400 9 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income - Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 widower) b $24,800 Charitable contributions if you take the standard deduction. See Instructions Head of Add lines 10a and 10b. These are your total adjustments to Income household, $18,650 11 Subtract line 10c from line 9. This is your adjusted gross income - If you checked 12. Standard deduction or itemized deductions (from Schedule A) any box under Standard 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A Deduction, 14 Add lines 12 and 13 see instructions. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 100 11 0 110,000 24.800 12 13 14 15 24,800 B5,200 Form 1040 (2000 Cat No. 11320B Page 2 2 4972 3 16 Form 1040 (2020) 16 17 18 Tax (see instructions). Check if any from Form(s): 1 8814 Amount from Schedule 2, line 3 Add lines 16 and 17 File TEJTAX/2020%20Form%201040(MF).pdf io Highlight Era 24,800 + EL D ID Page view A Read aloud | Draw If you checked 12 Standard deduction or itemized deductions (from Schedule A) any hok under Standard 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A Deduction 14 Add lines 12 and 13 see instructions. .. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113200 12 13 14 15 24.800 85 200 Form 1040 (ORD) Page 2 Form 1040 (2020) 16 3 16 17 17 18 10 19 19 20 Tax (see instructions). Check if any from Form(s): 1 8814 2 1 4972 Amount from Schedule 2, line 3 Add lines 16 and 17 Child tax credit or credit for other dependents Amount from Schedule 3, line 7 Add lines 19 and 20 Subtract line 21 from line 18. If zero or less, enter-O- Other taxes, including self-employment tax, from Schedule 2, line 10 Add lines 22 and 23. This is your total tax 20 21 22. 21 22 23 23 24 24 + El D Page view A Read aloud Draw Highlight $1040 2020 XX XXX Department of the Treasury - Internal Revenue Service (99) U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widowler) (OW) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box person is a child but not your dependent Your first name and middle initial Last name Your social security number John Smith 1 2 3 4 5 6 7 8 9 If joint return, spouse's first name and middle initial Last name Spouse's social security number Mary Smith 9 8 7 6 5 4 3 2 1 Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign XXX Check here if you, or your City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a XXX box below will not change Foreign country name Foreign province/state/county Foreign postal code your tax or refund. You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate retum or you were a dual-status alien Age/Blindness You: Were bom before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 is blind Dependents (see instructions): (2) Social security (3) Relationship (4) If qualifies for (see Instructions): number Last name (1) First name to you Child tax credit If more Credit for other dependents than four Robert Smith 5 4 2 9 1 1 1 2 2 Son dependents, Alice Smith 2 5 4 1 9 2 2 1 1 Daughter see instructions and check Rosemary Smith 1 1 2 1 1 2 2 3 3 Mother here David Jones 4 5 6 7 8 1 2 3 4 Cousin 1 1 110,000 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach 2a Tax-exempt interest. 2a b Taxable interest 2b Sch. Bif 3a Qualified dividends 3a b Ordinary dividends 3b required. 4a IRA distributions. 43 b Taxable amount 4b 5a Pensions and annuities 5a b Taxable amount 5b 6a 6a Social socurity bonofits Standard b Taxable amount 6b Deduction for 7 7 Capital gain or loss). Attach Schedule D if required. If not required, check here Single or 8 Married filing 8 Other income from Schedule 1, line 9. separately 110. a Add lines 10h2h ih 5h 6h 7 and 8 This is one total income g NO + (0 Page view A Read aloud V Draw Highlight 9 9 110,000 10a 10b 0 A separately. $12,400 9 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income - Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 widower) b $24,800 Charitable contributions if you take the standard deduction. See Instructions Head of Add lines 10a and 10b. These are your total adjustments to Income household, $18,650 11 Subtract line 10c from line 9. This is your adjusted gross income - If you checked 12. Standard deduction or itemized deductions (from Schedule A) any box under Standard 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A Deduction, 14 Add lines 12 and 13 see instructions. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 100 11 0 110,000 24.800 12 13 14 15 24,800 B5,200 Form 1040 (2000 Cat No. 11320B Page 2 2 4972 3 16 Form 1040 (2020) 16 17 18 Tax (see instructions). Check if any from Form(s): 1 8814 Amount from Schedule 2, line 3 Add lines 16 and 17 File TEJTAX/2020%20Form%201040(MF).pdf io Highlight Era 24,800 + EL D ID Page view A Read aloud | Draw If you checked 12 Standard deduction or itemized deductions (from Schedule A) any hok under Standard 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A Deduction 14 Add lines 12 and 13 see instructions. .. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113200 12 13 14 15 24.800 85 200 Form 1040 (ORD) Page 2 Form 1040 (2020) 16 3 16 17 17 18 10 19 19 20 Tax (see instructions). Check if any from Form(s): 1 8814 2 1 4972 Amount from Schedule 2, line 3 Add lines 16 and 17 Child tax credit or credit for other dependents Amount from Schedule 3, line 7 Add lines 19 and 20 Subtract line 21 from line 18. If zero or less, enter-O- Other taxes, including self-employment tax, from Schedule 2, line 10 Add lines 22 and 23. This is your total tax 20 21 22. 21 22 23 23 24 24
