Mary Martin. Our client. Single. Got divorced in 2020 - July 1. Got 6 months of alimony - $1500 monthly - from her ex. She extended her due date from 5/17 BUT needs help - we need to prep the tax return for federal purposes.

Works at Bank. Makes 40,000. Fed income tax withheld by Employer? $3000. Spent $2000 on nice clothes to wear to work! Takes Uber to work each day - $10 - So spent about $2000 during 2020 to get to work.

Has side gig as a hairdresser. People come to her house. She cuts hair, etc in kitchen. Made 18,000 in fees charged AND got tips of 3,000! Bought some supplies - $500. Bought some equipment - 2,500. Paid for advertising $500. Got a parking ticket - $100 and a speeding ticket $500 while attending a hair cut seminar! Bad! But hey it as business so she paid the tickets out of her business account! Smart!

Interest on home mortgage? $1500 a month. Her home- ex owned nothing - in fact they were only married for about 4+ months (they got married on Valentines Day - 2/14/20 - cute!). Property taxes - $2500 - on the home. State income tax withheld by Bank - $700. Opened a traditional IRA in November and put $2000 into the IRA.

Sold 100 shares of stock ABC Corp - Gain $4000. Owned 2 years. Sold 200 shares of XYZ Corp stock - Loss of $8000 - OUCH! Held 3 years. Sold 12/25/20!

Before selling these stocks she got $5000 of dividends! All were "qualified dividends!" She also earned $1200 of interest income on a $4000 New York City bond that paid 3% interest!

Oh - one more - she fell on cracked sidewalk outside the bank. Broke arm....but she could still work. But man did it hurt so owners paid her 25,000 for her pain and suffering, and $5000 for her emotional distress. Got paid 12/31/20!

Your job? Prep her federal tax return for 2020. And tell me if she owes or will get a refund