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Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.

  1. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
  2. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.
  3. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
  4. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
  5. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
  6. Kens son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100.
  7. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $12,250 in itemized deductions last year (the standard deduction for a single filer was $12,200).
  8. Ken received $30,000 of interest from corporate bonds and money market accounts.

****QUESTION: Can you please confirm the tax return was filled out correctly below. I believe it is but I am having a difficult time confirming:

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Income $ 1,200.00 illegal income B Gain on sale of stock $32,000 (1000*$32) - $31,000 (1000*$31) 25,000-(210,000/20) Excluded $ 1,000.00 $ 14,500.00 $ D $ Annuity Disability benefits Schoarship E $ 200.00 Rec'd $500; $300 on books & tuition; $200 on car Excluded; Taxable to who earned it F $ Paycheck from son State income tax Interest income G $ 50.00 $ 30,000.00 . Gross income $ 46,950.00 Department of the Treasury - Internal Revenue Service (99) 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) Qualifying widowler (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 Ken If joint return, spouse's first name and middle initial Spouse's social security number Last name 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 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 qualities for (see instructions): (1) First name Last name Child tax credit Credit for other dependents 1 250 30000 2b 3b 4b 4d 14500 5b 6 7a 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 Standard b Ordinary dividends. Attach Sch. B if required Deduction for 4a IRA distributions 4a b Taxable amount Single or Married 4c Pensions and annuities 25000 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 Dif required. If not required, check here widower). 7a Other income from Schedule 1, line 9 $24.400 Head of b Add lines 1, 26, 35, 46, 4, 5, 6, and 7a. This is your total income household 8 Adjustments to income from Schedule 1, line 22 $18,350 If you checked b Subtract line 8a from line 76. This is your adjusted gross income any box under Standard 9 9 Standard deduction or itemized deductions (from Schedule A) 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 1000 1200 46950 V 7b 8a 8b V 46950 11a 11b 46950 Form 1040 (2019) Form 1040 (2019) Page 2 12b 17 a 12a Tax (see inst.) Check if any from Form(s): 1 8814 2 4972 3 12a b Add Schedule 2, line 3, and line 12a and enter the total 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- 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 18 Other payments and refundable credits: If you have a qualifying child Earned income credit (EIC).. 18a attach Sch. EIC. 18b If you have b 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 e 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 20 Refund 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? Routing number c 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)

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