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. a. Ken won $1,280 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,080 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis for investment) in the stock was $31 per share. c. Ken received $25,800 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $216,720. d. Ken received $13,200 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $580 cash scholarship to attend. He used $340 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's 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 $1,220. g. Ken received a $650 refund of the $3,680 in state income taxes his employer withheld from his pay last year. Ken claimed $12,530 in itemized deductions last year (the standard deduction for a single filer was $12,400). h. Ken received $30,800 of interest from corporate bonds and money market accounts. 2. Complete page 1 of Form 1040 through line 9 and Schedule 1 for Ken. (Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any aivan information probitate Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F Unemployment compensation Other income. List type and amount Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Adjustments to Income Educator expenses Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction Penalty on early withdrawal of savings Alimony paid Recipient's SSN Date of original divorce or separation agreement (see instructions) IRA deduction Student loan interest deduction Tuition and fees deduction. Attach Form 8917 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR. OR Attachment Sequence NOU! and the latest information. Your social security number 1 2a 3 4 5 6 7 8 9 0 10 Attach Form 2106 11 12 13 14 15 16 17 18a 19 20 21
