Name INDIVIDUAL TAX RETURN PROBLEM Tax Year: 2019 John Q. Public (age 52) and his wife Karen (age 49) file a joint return. They have three children: Elizabeth S. Public (age 23) who is a full-time law student at State Law School, Charles B. Public (age 19) who is a full-time student at State College, and William F. Public (age 15). Elizabeth earned $6,000 working part-time in a law firm during the year. She also received a scholarship of $10,000 which was used only to pay for her books and tuition. Charles earned $5,200 from a summer job. John and Karen provide over half the support for all three children. Karen's father, George H. (age 76), resides in a nursing home and is legally blind. John and Karen provide over half of the support for Karen's father. George's only sources of income were $2,500 of bank interest, and $1,000 of tax-exempt interest. Other relevant information is as follows: Address: 100 Main Street Anywhere, IL 61100 Social security numbers: John Karen Elizabeth Charles William George 123-45-6789 987-65-4321 234-56-7890 098-76-5432 254-35-5512 234-49-5500 John's salary 110,000 Karen's salary 53,000 Karen's consulting business Gross receipts Travel Rent 36,000 1,800 6,000 Repairs Supplies (not part of COGS) Liability insurance 1,200 11,000 900 Federal income tax withholding from paychecks John Karen 15,950 10,600 State income tax withholding from paychecks John Karen 5,500 2,650 2019 federal estimated tax payments 2019 state estimated tax payments (all made in 2019) 4,200 400 17,000 Sale of ABC stock (basis reported to IRS) (gross proceeds) Date purchased 07/08/19 Date sold 9/15/19 Cost basis $14,500 Karen's Gambling Winnings 2,000 Interest income: General Motor Co. Bond interest State of Illinois bond interest 2,650 2,000 Medical expenses: Medical insurance paid by John Doctors and dentists Doctor bills for Karen's father Prescription medicine Non-prescription medicine (exclusive of insulin) 6,500 7,260 1,800 4,864 2,000 Real estate taxes 6,880 Charitable contributions: Cash 3,850 IBM stock held for 18 months donated to the U of I Foundation Acquired - 2/1/17 FMV Contributed - 8/5/19 Cost basis Address of U of I Foundation-456 Main St., Champaign, IL 61821 3,800 3,400 900 Interest expense: Interest on loan used to purchase General Motor Co. Bonds Interest on personal auto loan Interest on home mortgage 1,980 13,560 2,200 Miscellaneous deductions: Gambling losses Karen's unreimbursed employee expenses: Travel Meals 1,750 800 From the fore going information, prepare a 2019 federal income tax return. Using the 2019 forms: Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedule A Schedule B Schedule C Schedule D Form 8949 Sche SE, page 1 Form 8283, page 1 Form 8995 "QBI is net schedule-C income minus deductible SE tax Name INDIVIDUAL TAX RETURN PROBLEM Tax Year: 2019 John Q. Public (age 52) and his wife Karen (age 49) file a joint return. They have three children: Elizabeth S. Public (age 23) who is a full-time law student at State Law School, Charles B. Public (age 19) who is a full-time student at State College, and William F. Public (age 15). Elizabeth earned $6,000 working part-time in a law firm during the year. She also received a scholarship of $10,000 which was used only to pay for her books and tuition. Charles earned $5,200 from a summer job. John and Karen provide over half the support for all three children. Karen's father, George H. (age 76), resides in a nursing home and is legally blind. John and Karen provide over half of the support for Karen's father. George's only sources of income were $2,500 of bank interest, and $1,000 of tax-exempt interest. Other relevant information is as follows: Address: 100 Main Street Anywhere, IL 61100 Social security numbers: John Karen Elizabeth Charles William George 123-45-6789 987-65-4321 234-56-7890 098-76-5432 254-35-5512 234-49-5500 John's salary 110,000 Karen's salary 53,000 Karen's consulting business Gross receipts Travel Rent 36,000 1,800 6,000 Repairs Supplies (not part of COGS) Liability insurance 1,200 11,000 900 Federal income tax withholding from paychecks John Karen 15,950 10,600 State income tax withholding from paychecks John Karen 5,500 2,650 2019 federal estimated tax payments 2019 state estimated tax payments (all made in 2019) 4,200 400 17,000 Sale of ABC stock (basis reported to IRS) (gross proceeds) Date purchased 07/08/19 Date sold 9/15/19 Cost basis $14,500 Karen's Gambling Winnings 2,000 Interest income: General Motor Co. Bond interest State of Illinois bond interest 2,650 2,000 Medical expenses: Medical insurance paid by John Doctors and dentists Doctor bills for Karen's father Prescription medicine Non-prescription medicine (exclusive of insulin) 6,500 7,260 1,800 4,864 2,000 Real estate taxes 6,880 Charitable contributions: Cash 3,850 IBM stock held for 18 months donated to the U of I Foundation Acquired - 2/1/17 FMV Contributed - 8/5/19 Cost basis Address of U of I Foundation-456 Main St., Champaign, IL 61821 3,800 3,400 900 Interest expense: Interest on loan used to purchase General Motor Co. Bonds Interest on personal auto loan Interest on home mortgage 1,980 13,560 2,200 Miscellaneous deductions: Gambling losses Karen's unreimbursed employee expenses: Travel Meals 1,750 800 From the fore going information, prepare a 2019 federal income tax return. Using the 2019 forms: Form 1040 Schedule 1 Schedule 2 Schedule 3 Schedule A Schedule B Schedule C Schedule D Form 8949 Sche SE, page 1 Form 8283, page 1 Form 8995 "QBI is net schedule-C income minus deductible SE tax