Nathan Cohen , age 45, is a single taxpayer who lives at 2245 Mardel St., San Jose, CA 95130. His social security number is 351-42-1961. Nathans earnings and withholdings as a marketing director at a high-tech company for 2020 are:

Earnings from Placeware, Inc. $297,000 (this is after subtracting his health insurance premiums see below)

Federal Income tax withheld $50,000

State income tax withheld $23,500

Other facts and possibly useful information:

Nathan earns interest on a savings account at Bank of the West of $13,075.

Nathan is divorced, the divorce was final May 3, 2016, and pays his ex-wife $4,000 per month. When their 15-year old daughter (who lives 100% with the ex-wife) reaches 18, the payments drop to $2,800 per month. The reason it drops is because he is no longer paying child support once his daughter turns 18. His ex-wifes social security number is 857-51-6438. Nathan does not claim his daughter as a dependent.

Nathan paid the following amounts (he has records to prove payment):

California DMV renewal taxes (the value based part) : $300

Credit card interest expense $1,760

Auto Loan interest expense $4,300

Property taxes on his home $6,200

Blue Cross health insurance premiums $1,800 withheld from his paycheck (not deducted on Sch A, already paid with pretax dollars!).

Other medical expenses $790

Income tax preparation fees for his 2019 income tax return $900, which he paid on April 2020 when his 2019 taxes were prepared.

Federal 2019 income taxes paid in April 2020 when he filed his 2019 federal income tax return $1,825

California 2019 income taxes paid in April 2020 when he filed his 2019 California tax return $500

Check to Boy Scouts of America $1,100

Check for fundraiser to build a new building at Harker School, where his daughter goes, $8,000. This payment was not related to tuition and neither Nathan nor his family received any specific benefits.

Check to St. Andrews Church $10,000

Stanford Business School Alumni Association $12,000 (fundraiser to support the business school)

Silicon Valley Democratic Party Fund $1,000 (2020 campaign fundraiser)

Nathan paid $100 to attend a fundraising dinner at the Tech Museum of Innovation, the value of the dinner is $50.

Nathan received a Form 1098 Mortgage Interest Statement from Bank of the West indicating $19,700 of interest expense on his mortgage (a qualified acquisition mortgage)

Complete Nathans 8959 and 8960. If you need to make assumptions, they should be realistic. Hint: Form 8959, lines 7, 18, 22 and 24 should be $873, and form 8960, Line 17 should be $454, and that the total of these additional taxes belong on Schedule 2 (you figure out where on Sch 2), and on line 23 of Form 1040.