Julio and Maria Gomez are retired and they live at 567 Ono Way, Cambria, CA 94457. Julio's Social Security number is 777-88-5555 and Maria's is 666-88-4444.
Julio received Social Security retirement benefits of $28,400 and Maria received Social Security retirement benefits of $22,858. In addition, Maria received
a pension form the state of California in the amount of $16,752, and she had $3500 withheld for federal taxes ( include this on page 2 of Form 1040 as a
credit towards the tax liability). Julio and Maria also have a savings account with Wells Fargo Bank and they earned $4200 in interest income.
Julio and Maria own and live in their own home but do not pay a mortgage because they have paid it completely prior to retiring. Their property taxes are
very low and their medical expenses as well so they do not itemize deductions.
Julio and Maria have a rental and need to include the income on their tax returns. They received $36000 in rents and had the following expenses for their rental which is located in Cambria, CA.
Property taxes $3400
Utilities $1200
Repairs $5478
Depreciation $1234.
Prepare their 2020 tax return. Include Forms 1040, Schedule 1, and Schedules B and E. Only part of their Social Security retirement benefits are taxable. Provide the calculations you made to determine how much of their Social Security retirement benefits are taxable
Dept of the more 1040 99 U.S. Individual Income Tax Return 2020 OMEN 1545-0074 - DE Filing Status Single Married fing jointly Married Sling separately MFS Head of household 10H Dullying widowarow Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or GW box, enter the child's name if the quantifying person is a child but not your dependent Your first name and middle Your social security number ono box joint return, spouse's fronume and middle initial Last Spouse's social security number Home address number and rell you how PO bonitruction Act Presidential Section Campaign Check here if you, or your City, town, or post office you have a foreign addre. ho complete spaces below ZIP code spous filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign country Foreign provincerty Forsport code your tax or rotund You Spouse At any time during 2020, did you receive, sell, sond, exchango, or otherwise acquire any financial interest in any virtual curry? Yes No Standard Someone can claim you as a dependent Your spouse as a dependent Deduction Sponsoitomicios on a separato return or you wore a dual status alien Ago/Blindness You Woro bombefore January 2, 1956 Are blind Spouse Was bom before January 2, 1956 is blind Dependents now instruction Social security Relationship 19 dies for struction (1) Frame number La to you Chi tax credit more Credit for the dependents than four dopondents, soo instructions and check here 1 Wagos, salarios, tips, otc. Attach Forms W2 1 Attach 2a Tax-exemptintorost b Taxable interest 2 Sch. Bit 3a Qualified dividends 3b b Ordinary dividonds required 4a TRA distributions b Taable amount 5a Pensions and artis b Taxable amount 5b Standard 6a Social security benefits 60 Table amount Deduction for 7 Capital gain oro). Attach Schedule Dif required. If not required, check hore 7 Singer Mamedling 8 8 Other income from Schedule 1, line 9 separately $12.400 9 9 Add inos 1, 2, 3, 4, 5, 6, 7, and B. This is your total income Marriedling 10 Adjustments to income nity or 10a Dar a From Schedule 1, line 22 10b S.RO b Charitable contributions if you take the standard deduction. So instructions 10c o c Add lines 10a and 106. These are your total adjustments to income cold ST. 11 11 Subtract line 16c from line. This is your adjusted gross income you checked 12 12 Standard deduction or omired deductions from Schedule wybox under Standard 13 13 Qualified business income deduction Attach Form 1995 or Form 8996A Deduction 14 14 Addinos 12 and 13 so instruction 15 Taxable income. Subtract line 14 from line 11. 1200 oras, entor-o- 15 TO Tom 1040 pool For Dinclosure, Privacy Act, und Paperwork Reduction Kit Motite se separate intructions 4b A 8393 AA SUSBR 2020 SCHEDULE 1 OMB No 1545-0074 Additional Income and Adjustments to Income (Form 1040) Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NAL Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest Information Sequanon No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NA Your social security number 1 2a 3 3 4 4 5 6 6 7 CO 8 9 9 10 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received. b Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule Other gains or losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F 7 Unemployment compensation. 8 Other income. List type and amount Combine lines 1 through 8. Enter here and on Form 1040, 040-SR, or 1040-NR. line 8 Part II Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and foos deduction. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a 11 12 13 14 15 16 17 18a 19 20 21 22 SCHEDULEB (Form 1040) Interest and Ordinary Dividends Go to www.in.gov/Schedule for instructions and the latest information. Attach to Form 1040 or 1040-SEL OMB No 1545-0074 2020 Attachment Sequence No. 08 Your social security number Department of the Trommur Inbemal Revenue Service Name shown on return Amount 1 Part 1 1 Ust name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this Interest interest first. Also, show that buyer's social security number and address (Soo instructions and the instructions for Forms 1040 and 1040-SR line 2D) Note: If you received a Form 1099 INT, Form 1099-01D, or Substituto statement from a brokerago firm, list the firm's name as the payer and enter the total intorest shown on that form 2 Add the amounts on line 1 3 Excludable interest on series EE and I US. savings bonds issued after 1989. Attach For 8815 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b Note: If line 4 is over $1,500, you must complete Partil Part 11 5 List name of payer Ordinary Dividends 2 3 4 Amount (See instructions and the instructions for Forms 1040 and 1040-SR, line 3 5 Note: If you received a Fom 1090-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and ontor the ordinary dividonds shown 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR. on that form line 3 6 Notes I line 6 is over $1,500, you must complete Part Part III You must complete this part if you (a) had over $1,500 of facabile interest or ordinary dividends: (b) had a fornare intercheceived a distribution for Rentransfer to a foreign torst Yes No SCHEDULE E Supplemental Income and Loss OM NO1545-0074 Form 1000 From rental real estate, royalties, partnerships, corporations, estates, trust, REMICS, etc.) 2020 Department of the Trosa Attach to Form 1010, 040-5A, 5040-NR. 1041 Attachment revenue Go to www.in.gov/Schedule for instructions and the latest Information Laguna No 13 Nhow on totum Your social security number Part 1 Income or Loss From Rental Real Estate and Royalties Hotell you when the business of renting personal property, we Schedule See Instruction, you are an individual report format comes from Form 1835 on page , fine 40 A Did you make any payments in 2020 that would require you to file Forms) 10907 See Instructions Yes No Bos did you or will you filo required Fomo 10007 Yes No 1a Physical address of each proporty stroot, City State ZIP codo) A B 1b Type of Property 2 Foroach rental real estate property listed Fair Rental Personal Uso OJV (from list below) above, report the number of fair roints and Days Days personal use days. Check the JV box only if you moot the requirements to floasa B qualified joint venture Soe Instruction B C Type of Property 1 Single Family Residence 3 Vacation Short-Term Pontal 5 Land 7 SollPantal 2 Multi-Family Residence 4 Commercial 6 Royal Other describe Income Properties: A B 3 Rants received 3 4 Royaltios recolved 14 Expenses 5 Advertising 5 6 Auto and travel instructions) 6 7 Cleaning and maintenance 7 8 Commissions 8 o Insurance 10 Logaland other professional foon 10 11 Managomont foos 11 12 Mortgage Interest paid to banks, otc. (soo instructions) 12 13 Other interest 13 14 Repairs 14 15 Supplies 15 16 Taxes 16 17 Utilities 17 18 Dopreciation exponse or doplotion 18 10 Other list) 10 20 Total expenses. Add lines through 10 20 21 Subtract line 20 from line 3 fronts) and/or 4 broyti). If result is a (los), 500 instructions to find out if you must filo Form 6100 21 22 Doductible rontal real estate loss after limitation. If any on Form 8582 00 instructions) 22 230 Total of all amounts reported on line 3 for all rental properties 239 b Total of all amounts reported on line 4 for all royalty properties 230 c Total of all amounts roportod on line 12 for all properties 23c d Total of all amounts reported on line 18 for all proportios 23d Total of all amounts reported online 20 for all properties 230 24 Income. Add positive amounts shown on line 21. Do not include any losses 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter totaltosos here 25 26 Total rental real estate and royalty income or loss). Combine fines 24 and 25. Enter the rout hora. I Parts 11. , IV, and line 40 on page 2 do not apply to you, siso entor this amount on Schedulo 1 Form 1040), lino S. Otherwise, include this amount in the total on line 41 on page 2 26 b
