Julie Anderson is a single parent and lives with her dependent daughter Alice who is 17-years old. Julie is a project manager and her W-2 wage is $75,200. Julie's father passed away on April 14. She inherited cash of $50,000 from her father and his baseball card collection, valued at $2,000. Every year she also receives interest income from a trust fund, which does not invest in municipal bonds or other tax-exempt securities. She took the standard deduction on her 2018 federal tax return. Her 2019 filing status is head of household. She also has the following items for 2019:
Interest income from the trust fund. $2,000
Ordinary dividend income.....................................................$500 (All the dividends are qualified for the 15% tax rate)
She also bought 50 shares Apple Inc. stock (AAPL) when the price was $100 per share. AAPL's market closing price for December 2019 is $250 per share.
During the year she went to Vegas and won $ 1,300 in a poker game. However, she lost $2,000 at other casinos.
She also provided the following information:
Illinois state income tax refund.. $ 250
Federal income tax refund $2,400
Child support from her ex-husband.. $6,000
Alimony payment from her ex-husband. Their divorce was finalized on August 15, 2019..$12,000
During the year she received $4,000 insurance payout from AFLAC due to a temporary disability. She bought the insurance policy herself.
In addition, she also provided the following information:
State income tax withheld from her paycheck. .$ 3,200
Federal income tax withheld from her paycheck. $ 9,000
Social security tax paid as an employee............. $ 5,640
Home mortgage loan interest $ 5,500
Real estate tax on her house $ 4,000
Personal-use car loan interest.. $ 2,000
She also paid $2,000 of qualified student loan interest. Ms. Anderson had a medical procedure and incurred qualified medical costs of $30,000. Her health insurance policy pays 80% of the medical cost and Julie paid the remaining 20% out of her own pocket.
Her car was completely damaged in hurricane Hana, a federally declared natural disaster. Before the disaster the car has a fair market value of $12,000. She bought the car for $25,000 when it was new.
PLEASE ANSWER THIS QUESTION FROM ABOVE INFO
1. Form 1040 Line 1 _____ (W-2 wages, enter without comma or $)
2. Taxable interest on 1040 Line 2b _______
3. 1040 Line 3a _______
4. 1040 Line 3b ________
5. Schedule 1, Line 1 Taxable refunds (enter 0 if none) ______
6. Schedule 1, Line 8 Other income (enter 0 if none) ______
7. Schedule 1, Line 20 (Student loan interest) ______
8. Form 1040, Line 8b (Adjusted Gross Income) ______
9. Schedule A LIne 4 (Medical and Dental) ______
10. Schedule A Line 5a (State income tax paid) ______
11. Schedule A Line 5b (Real estate taxes) ____
12. Schedule A Line 7 _______
13. Schedule A LIne 10 (Interest you paid) ____
14. Schedule A Line 15 (Deductible Casualty Loss
15. Schedule-A Line 16 Other Itemized Deductions ____
16. Schedule-A Total Itemized Deductions _____
17. Form 1040 Line 9 (Standard or Itemized Deduction) _____
18. Taxable income _______
19. Total Tax (Form 1040 Line 12a) _______
SCHEDULE A Itemized Deductions OMB No 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/ScheduleA for instructions and the latest information. 2019 Attach to Form 1040 or 1040-SR. Department of the Treasury Attachment Intemal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number Medical and Dental Expenses 3 Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040 or 1040-SR, line 8b2|| 3 Multiply line 2 by 7.5% (0.075) ...... 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- 5 State and local taxes. " a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box. D 5a b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c d Add lines 5a through 5c ... 5d e Enter the smaller of line 5d or $10,000 $5,000 if married filing separately) 5e 6 Other taxes. List type and amount 6 7 7 Add lines 5e and 6 Interest You 8 Home mortgage interest and points. If you didn't use all of your home Paid mortgage loan(s) to buy, build, or improve your home, see Caution: Your instructions and check this box mortgage interest deduction may be a Home mortgage interest and points reported to you on Form 1098. See limited (see instructions instructions if limited ..... b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8a 10 8b c Points not reported to you on Form 1098. See instructions for special rules 8C d Mortgage insurance premiums (see instructions) 8d e Add lines 8a through 8d . 8e 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines 8e and 9 de o ano Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions 11 12 Other than by cash or check. If you made any gift of $250 or more, Caution: If you made a gift and see instructions. You must attach Form 8283 if over $500. 12 got a benefit for it. 13 Carryover from prior year 13 see instructions. 14 Add lines 11 through 13 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions. 15 Other 16 Other-from list in instructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9..... 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box ............ For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019 OMB No. 1545-0074 SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040 or 1040-SR) Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 or 1040-SR 2019 Attachment Sequence No. 01 Your social security number SON olm At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Parti Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received . 2a b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C. 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 5 6 Farm income or loss). Attach Schedule F 6 7 Unemployment compensation. 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 15 Self-employed SEP, SIMPLE, and qualified plans. 15 16 Self-employed health insurance deduction 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid. 18a b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Tuition and fees. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) D Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box. a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your tax or refund. . You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: O Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents 0 1 2b 3b 4b 4d 5b 6 7 1 Wages, salaries, tips, etc. Attach Form(s) W-2. 2a Tax-exempt interest. 2a b Taxable interest. Attach Sch. B if required Qualified dividends. b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a IRA distributions. 4a b Taxable amount Single or Married Pensions and annuities 4c d Taxable amount filing separately, $12,200 5a Social security benefits . 5a b Taxable amount Married filing 6 jointly or Qualifying Capital gain or loss). Attach Schedule D if required. If not required, check here widow(er), 7a Other income from Schedule 1, line 9.. $24,400 Head of b Add lines 1, 2b, 3b, 4b, 40, 5b, 6, and 7a. This is your total income household, 8 $18,350 Adjustments to income from Schedule 1, line 22 If you checked b Subtract line 8a from line 7b. This is your adjusted gross income . any box under Standard 9 Standard deduction or itemized deductions (from Schedule A) 9 Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 see instructions. 11a Add lines 9 and 10.. b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 7b 8 8b 11a 11b Form 1040 (2019) Page 2 e Form 1040 (2019) 12a Tax (see inst.) Check if any from Form(s): 1 8814 2 04972 3 D 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents. 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter-O- 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax. 16 17 Federal income tax withheld from Forms W-2 and 1099 17 18 . If you have a Other payments and refundable credits: qualifying child, a Earned income credit (EIC). 18a attach Sch. EIC. b If you have 18b Additional child tax credit. Attach Schedule 8812 nontaxable American opportunity credit from Form 8863, line 8 18c combat pay, see instructions d Schedule 3, line 14. . 18d Add lines 18a through 18d. These are your total other payments and refundable credits 18e 19 Add lines 17 and 18e. These are your total payments 19 Refund 20 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposit? b Routing number Type: Checking Savings See instructions. Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 23 You Owe 24 Estimated tax penalty (see instructions). .. 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. Designee No (Other than Designee's Phone Personal identification paid preparer) name no. number (PIN) Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Joint return? (see inst.) See instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for Identity Protection PIN, enter it here your records. (see inst.) Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: Paid 3rd Party Designee Preparer Firm's name Phone no. Self-employed Use Only Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2019) 8 SCHEDULE A Itemized Deductions OMB No 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/ScheduleA for instructions and the latest information. 2019 Attach to Form 1040 or 1040-SR. Department of the Treasury Attachment Intemal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number Medical and Dental Expenses 3 Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040 or 1040-SR, line 8b2|| 3 Multiply line 2 by 7.5% (0.075) ...... 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- 5 State and local taxes. " a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box. D 5a b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c d Add lines 5a through 5c ... 5d e Enter the smaller of line 5d or $10,000 $5,000 if married filing separately) 5e 6 Other taxes. List type and amount 6 7 7 Add lines 5e and 6 Interest You 8 Home mortgage interest and points. If you didn't use all of your home Paid mortgage loan(s) to buy, build, or improve your home, see Caution: Your instructions and check this box mortgage interest deduction may be a Home mortgage interest and points reported to you on Form 1098. See limited (see instructions instructions if limited ..... b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8a 10 8b c Points not reported to you on Form 1098. See instructions for special rules 8C d Mortgage insurance premiums (see instructions) 8d e Add lines 8a through 8d . 8e 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines 8e and 9 de o ano Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions 11 12 Other than by cash or check. If you made any gift of $250 or more, Caution: If you made a gift and see instructions. You must attach Form 8283 if over $500. 12 got a benefit for it. 13 Carryover from prior year 13 see instructions. 14 Add lines 11 through 13 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions. 15 Other 16 Other-from list in instructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9..... 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box ............ For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019 OMB No. 1545-0074 SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040 or 1040-SR) Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 or 1040-SR 2019 Attachment Sequence No. 01 Your social security number SON olm At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Parti Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received . 2a b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C. 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 5 6 Farm income or loss). Attach Schedule F 6 7 Unemployment compensation. 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 15 Self-employed SEP, SIMPLE, and qualified plans. 15 16 Self-employed health insurance deduction 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid. 18a b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Tuition and fees. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) D Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box. a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your tax or refund. . You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: O Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents 0 1 2b 3b 4b 4d 5b 6 7 1 Wages, salaries, tips, etc. Attach Form(s) W-2. 2a Tax-exempt interest. 2a b Taxable interest. Attach Sch. B if required Qualified dividends. b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a IRA distributions. 4a b Taxable amount Single or Married Pensions and annuities 4c d Taxable amount filing separately, $12,200 5a Social security benefits . 5a b Taxable amount Married filing 6 jointly or Qualifying Capital gain or loss). Attach Schedule D if required. If not required, check here widow(er), 7a Other income from Schedule 1, line 9.. $24,400 Head of b Add lines 1, 2b, 3b, 4b, 40, 5b, 6, and 7a. This is your total income household, 8 $18,350 Adjustments to income from Schedule 1, line 22 If you checked b Subtract line 8a from line 7b. This is your adjusted gross income . any box under Standard 9 Standard deduction or itemized deductions (from Schedule A) 9 Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 see instructions. 11a Add lines 9 and 10.. b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 7b 8 8b 11a 11b Form 1040 (2019) Page 2 e Form 1040 (2019) 12a Tax (see inst.) Check if any from Form(s): 1 8814 2 04972 3 D 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents. 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter-O- 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax. 16 17 Federal income tax withheld from Forms W-2 and 1099 17 18 . If you have a Other payments and refundable credits: qualifying child, a Earned income credit (EIC). 18a attach Sch. EIC. b If you have 18b Additional child tax credit. Attach Schedule 8812 nontaxable American opportunity credit from Form 8863, line 8 18c combat pay, see instructions d Schedule 3, line 14. . 18d Add lines 18a through 18d. These are your total other payments and refundable credits 18e 19 Add lines 17 and 18e. These are your total payments 19 Refund 20 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposit? b Routing number Type: Checking Savings See instructions. Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 23 You Owe 24 Estimated tax penalty (see instructions). .. 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. Designee No (Other than Designee's Phone Personal identification paid preparer) name no. number (PIN) Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Joint return? (see inst.) See instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for Identity Protection PIN, enter it here your records. (see inst.) Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: Paid 3rd Party Designee Preparer Firm's name Phone no. Self-employed Use Only Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2019) 8
